Summary
The share of first-time homebuyers in the U.S. fell to 21% last year, the lowest rate since 1981, according to the National Association of Realtors. Higher home prices, mortgage rates near 6.5%, and larger down payments are making it harder for younger people to buy homes.
Key Facts
- First-time buyers made up 21% of homebuyers in 2023, down 3% from the previous year.
- The median age of first-time buyers is now 40, the highest on record.
- Home prices rose nearly 50% from 2019 to 2024 and continue to increase slowly.
- Mortgage rates doubled from 2019 to 2022 and remain just below 6.5%.
- The average down payment for first-time buyers is 10%, the highest since 1989.
- Baby boomers make up 42% of buyers and 52% of sellers, benefiting from high home equity.
- The median age for repeat buyers has risen to 62, with a 23% average down payment.
- Many Americans believe owning a home now requires a six-figure income and see it as a privilege, not a realistic goal.
