Where Are the First-Time Homebuyers? A Generation Left on the Sidelines

Neil Caron
Jul 30
2 min read

July 30, 2025 | Market Insights | Presented by ReadySetLoan™

According to new analysis, first-time homebuyers in the U.S. are disappearing at record rates—making up just 26% of all home purchases in 2024, down from a 38% average over the previous four decades. It’s the lowest share on record since the National Association of Realtors began tracking the metric in 1981.

This isn’t just a dip—it’s a seismic shift.

What’s Keeping First-Time Buyers Out?

While headlines often focus on interest rates, the barriers run much deeper:

🐷 RSL Piggy Points:

Affordability Crunch: Median home prices have soared 45% since 2020, pushing many starter homes completely out of reach.
Stubbornly High Rates: Even as inflation cools, mortgage rates remain elevated—erasing affordability gains.
Student Debt & Cost of Living: Younger buyers are grappling with rising rents, car loans, and student loan payments, making it harder to save for a down payment.
Inventory Drought: Homes in the starter range are often snapped up by investors or cash buyers, leaving first-timers at a disadvantage.

“It's not just about the cost of a home,” explains a market analyst. “It's about the cost of everything—childcare, groceries, insurance. For many, homeownership feels like a luxury, not a life step.”

Who Is Buying?

The data tells a stark story. Today’s typical homebuyer:

Is 49 years old, a record high.
Has significant equity from a prior home sale.
Often purchases without needing to finance the full amount.

This profile further pushes out young professionals and working-class families, especially in high-cost markets like California, the Northeast, and growing parts of the South.

Neil’s Take 🎙

From Neil Caron, Area Sales Manager at CMG Mortgage

“This trend is deeply concerning. At ReadySetLoan™, we’re seeing more young families and individuals completely priced out—not for lack of desire, but due to systemic barriers. It’s why we focus on education, creative loan solutions, and partnerships that put first-time buyers back in the race.”

There Is a Way In – With the Right Guide

At ReadySetLoan, we believe first-time buyers deserve more than just headlines and heartbreak. They need customized plans, guidance on down payment assistance, and access to renovation and low down payment options that still exist—despite the noise.

If you're a hopeful buyer wondering where to start, we’re your educational partner through every twist, turn, and piggybank deposit.

🏁 Ready to Stop Watching From the Sidelines?

Let ReadySetLoan™ be your guide to the finish line. Start here to explore your options, from pre-approval to closing and beyond.