Each year, the National Association of Realtors (NAR) releases a survey of home buyers and sellers. This year’s report analyzed data from individuals who completed a transaction between July 2024 and June 2025.
What the 2025 Profile of Home Buyers and Sellers revealed, unfortunately, were some historically troubling trends.
Between mid-2024 and mid-2025, the housing market experienced a persistent shortage of available homes. Properties that did become available were frequently priced beyond the reach of many prospective buyers.
Related: Fannie Mae predicts major mortgage rate change
Throughout this period, mortgage rates averaged 6.69%, contributing to the overall decline in housing affordability. As a result, many first-time buyers withdrew from the market, while existing homeowners benefited from continued growth in their home equity.
The market remained sharply polarized, with a record number of purchases made entirely in cash, contrasted by a historic low in participation from first-time buyers.
“The share of first-time home buyers dropped to a record low of 21%, while the typical age of first-time buyers climbed to an all-time high of 40 years,” NAR said in a statement.
Veteran analyst explains implications of historic home-buying data
Jessica Lautz, NAR deputy chief economist and vice president of research, clarified the importance of the survey’s findings.
“The historically low share of first-time buyers underscores the real-world consequences of a housing market starved for affordable inventory,” Lautz said. “The share of first-time buyers in the market has contracted by 50% since 2007 — right before the Great Recession.”
“The implications for the housing market are staggering,” she continued. “Today’s first-time buyers are building less housing wealth and will likely have fewer moves over a lifetime as a result.”
More on homebuying:
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- Berkshire Hathaway HomeServices explains housing market changes
- Fannie Mae forecasts mortgage rate shakeup
Lautz provided further stark context to explain the significance of the data.
“Unfolding in the housing market is a tale of two cities,” she said. “We’re seeing buyers with significant housing equity making larger down payments and all-cash offers, while first-time buyers continue to struggle to enter the market.”
Homeownership is key to building wealth
Shannon McGahn, NAR executive vice president and chief advocacy officer, noted that homeownership has been the primary means by which Americans have built wealth for generations.
“Delayed or denied homeownership until age 40 instead of 30 can mean losing roughly $150,000 in equity on a typical starter home,” she said.
McGahn emphasized the importance of Federal Housing Administration (FHA) and Department of Veterans Affairs (VA) government programs that assist people in purchasing homes.
“FHA and VA programs have helped millions of Americans access homeownership, join the middle class, and create intergenerational wealth — a testament to smart government policy in support of homeownership,” she said.
Inadequate housing supply named as key problem
McGahn made clear her belief that the root cause of the current U.S. affordability crisis is the lack of effective policies addressing the inadequate housing supply.
“That means both unlocking existing inventory and enabling new construction,” she said. “We need solutions that encourage more owners to sell, revitalize underused properties, streamline local zoning and permitting barriers, and modernize construction methods to build more homes faster and more affordably.”
“These commonsense reforms make homes more affordable, restore opportunity, and help revive the dream of homeownership for generations to come,” McGahn added.
NAR survey findings for buyers and sellers of homes
First-time buyers
- The median age was 40 years old.
- The median down payment was 10%, matching the highest level since 1989.
- 59% used personal savings for their down payment.
- 26% used financial assets such as a 401(k), stocks, or cryptocurrency.
- 22% received gifts or loans from family and friends.
Repeat buyers
- The median age was 62 years old.
- The median down payment was 23%.
- 30% purchased their homes with all cash.
All buyers
- The median age was 59 years old.
- 24% had children under 18 living at home, an all-time low.
- 14% bought multigenerational homes, down from 17% in 2024.
- 41% cited caring for aging parents as a reason for buying multigenerational homes.
- 29% cited cost savings as a reason.
- 27% cited adult children moving back home.
All sellers
- The median time spent in the home before selling was 11 years, an all-time high.
- The median distance moved was 30 miles, down from 35 miles the previous year.
- 50% purchased a newer home after selling.
- 34% purchased a larger home.
Related: Redfin forecast predicts key mortgage rate move on horizon
