Property 
Buying a first home is typically the largest financial decision and commitment most people will ever make. We wanted to find out just how big this impact was on the nation, and what the first-time buyer market looks like. To do this, we have reviewed the most significant reports, research papers, and analysis to provide a comprehensive overview of first-time homebuyer statistics.
Key first-time homebuyer statistics:
- The average first-time homebuyer is 40 years old as of 2025, up from 38 years old the year before.
- First-time buyers had a median household income of $94,400 in 2024, compared to $111,700 for repeat buyers.
- In 2025, there were an estimated 852,600 first-time homebuyers, 59% less than 2021’s figure of 2,080,800.
- To afford the typical U.S. home in early 2026, buyers must earn about $111,252, with a median sale price of $426,747, while starter homes reached a record $260,508 in August 2025 (+2.2 % YoY).
What is a first-time homebuyer?
It may seem obvious to assume that a first-time buyer is someone who has never purchased property before. However, the definition can extend slightly beyond this. For example, the U.S. Department of Housing and Urban Development (HUD) [1] U.S. Department of Housing and Urban Development. “First-Time Homebuyer Definition.” Accessed February 26, 2026. https://archives.hud.gov/offices/hsg/sfh/ref/sfhp3-02.cfm defines some exceptions for first-time buyers such as:
- Someone who has never owned a ‘principal residence’, even if their spouse has previously owned property
- A person who is now displaced where their previous property ownership was with their spouse
- A single parent who previously owned a home with their spouse (or ex-spouse)
- Someone who hasn’t owned a ‘principal residence’ for the last three years (ending on date of new home purchase)
Therefore, a first-time homebuyer is not just someone about to buy their first home. This distinction is important as these exceptions will feed into the statistics.
However, mortgage lenders and first-time buyer assistance programs may have their own definitions and distinctions, so it is important to do the research to find the program that best suits the individual’s needs.
First-time homebuyer demographics
According to the National Association of Realtors (NAR) survey of homebuyers that was completed for the year ending June 2025, first-time buyers made up 21% of all homebuyers. [2] National Association of Realtors. “2025 Profile of Home Buyers and Sellers.” Accessed February 26, 2026. https://prc-pa.net/wp-content/uploads/2025/11/NAR-2025-Profile-of-Buyers-Sellers.pdf But what is the exact makeup of the typical first-time homebuyer? The following is a breakdown of the average demographics for first-time homebuyers in the U.S.
How old are first-time homebuyers?
The median age of all first-time homebuyers across all ages and ethnicities is 40 years old as of 2025, this is up by two years from 38 years old in 2024. [2] National Association of Realtors. “2025 Profile of Home Buyers and Sellers.” Accessed February 26, 2026. https://prc-pa.net/wp-content/uploads/2025/11/NAR-2025-Profile-of-Buyers-Sellers.pdf
First-time buyers by age group
First-time homebuyers are most commonly between the ages of 25 and 34, representing 32% of all first-time buyers. An additional 25% are between the ages of 35 and 44. These figures reflect the distribution of first-time buyers by age group, not the percentage of individuals within each age group who are first-time buyers.
| Age | Percentage of first-time home buyers |
|---|---|
| 18 to 24 | 4% |
| 25 to 34 | 32% |
| 35 to 44 | 25% |
| 45 to 54 | 16% |
| 55 to 64 | 14% |
| 65 to 74 | 8% |
| 75+ | 1% |
Source [2] National Association of Realtors. “2025 Profile of Home Buyers and Sellers.” Accessed February 26, 2026. https://prc-pa.net/wp-content/uploads/2025/11/NAR-2025-Profile-of-Buyers-Sellers.pdf
Age of first-time homebuyers over time
The average age of first-time buyers has increased from 29 in 1981 to 40 in 2025. [2] National Association of Realtors. “2025 Profile of Home Buyers and Sellers.” Accessed February 26, 2026. https://prc-pa.net/wp-content/uploads/2025/11/NAR-2025-Profile-of-Buyers-Sellers.pdf The lowest average age of first-time homebuyers in the last 40 years was in 1991 when it dipped to 28 and it has not been this low since. The below graph shows the average age of first-time homebuyers since 1981, some years are missing as the data was not collected every single year. [2] National Association of Realtors. “2025 Profile of Home Buyers and Sellers.” Accessed February 26, 2026. https://prc-pa.net/wp-content/uploads/2025/11/NAR-2025-Profile-of-Buyers-Sellers.pdf
| Year | Average Age of First-time Homebuyers |
|---|---|
| 1981 | 29 |
| 1985 | 29 |
| 1987 | 29 |
| 1989 | 30 |
| 1991 | 28 |
| 1993 | 32 |
| 1995 | 31 |
| 1997 | 32 |
| 2000 | 32 |
| 2002 | 31 |
| 2003 | 32 |
| 2004 | 32 |
| 2005 | 32 |
| 2006 | 32 |
| 2007 | 31 |
| 2008 | 30 |
| 2009 | 30 |
| 2010 | 30 |
| 2011 | 31 |
| 2012 | 31 |
| 2013 | 31 |
| 2014 | 31 |
| 2015 | 31 |
| 2016 | 32 |
| 2017 | 32 |
| 2018 | 32 |
| 2019 | 33 |
| 2020 | 33 |
| 2022 | 36 |
| 2023 | 35 |
| 2024 | 38 |
| 2025 | 40 |
Race/ethnicity of first-time homebuyers
According to a NAR survey, first-time homebuyers identified their ethnicity as white (71%), followed by Black/African American ( 12%) and Hispanic/Latino buyers (10%). Those identifying as Asian or Pacific Islander make up 8% of first-time homebuyers, while the remaining 4% identified as Other. [2] National Association of Realtors. “2025 Profile of Home Buyers and Sellers.” Accessed February 26, 2026. https://prc-pa.net/wp-content/uploads/2025/11/NAR-2025-Profile-of-Buyers-Sellers.pdf
| Ethnicity | Percentage of first-time homebuyers |
|---|---|
| White | 71% |
| Black/African American | 12% |
| Hispanic/Latino | 10% |
| Asian/Pacific Islander | 8% |
| Other | 4% |
* Data note: Respondents were permitted to select as many races and ethnicities as they felt applicable.
The percentage distribution may therefore sum to more than 100 percent.
Adult composition of first-time homebuyers
As of 2025 in the survey, half of first-time homebuyers were married couples (50%), making them the largest group by marital status. Single women made up a quarter (25%) of first-time homebuyers, followed by unmarried couples (11%), single men (10%), and other household types (4%). [2] National Association of Realtors. “2025 Profile of Home Buyers and Sellers.” Accessed February 26, 2026. https://prc-pa.net/wp-content/uploads/2025/11/NAR-2025-Profile-of-Buyers-Sellers.pdf
| First-time buyers by adult composition * | |
| Marital status | Percentage of first-time buyers |
| Married couples | 50% |
| Single women | 25% |
| Unmarried couples | 11% |
| Single men | 10% |
| Other | 4% |
Source [2] National Association of Realtors. “2025 Profile of Home Buyers and Sellers.” Accessed February 26, 2026. https://prc-pa.net/wp-content/uploads/2025/11/NAR-2025-Profile-of-Buyers-Sellers.pdf
How to Rent with Bad Credit
Leasing an apartment or home with bad credit can be a challenge, but if you follow the right steps some landlords may be willing to work with you.
Download our guideAverage income of first-time homebuyers
The average median household income of first-time homebuyers was $94,400 in 2024, while the average income of repeat buyers is $111,700. This could be related to the difference in age as the average first-time buyer is 40 years old and the average repeat buyer is 62 years old. [2] National Association of Realtors. “2025 Profile of Home Buyers and Sellers.” Accessed February 26, 2026. https://prc-pa.net/wp-content/uploads/2025/11/NAR-2025-Profile-of-Buyers-Sellers.pdf
Average cost of a first home in the U.S.
According to Redfin, homebuyers must earn approximately $111,252 per year to afford the typical U.S. home as of early 2026. [3] Redfin. “Redfin Reports Buyers Must Earn $111,000 to Afford the Typical Home.” Accessed February 26, 2026. https://www.redfin.com/news/press-releases/redfin-reports-buyers-must-earn-111000-to-afford-the-typical-home-down-4-from-last-year/ The median sale price of a home nationwide as of February 2026 is around $426,747, depending on market fluctuations, [3] Redfin. “Redfin Reports Buyers Must Earn $111,000 to Afford the Typical Home.” Accessed February 26, 2026. https://www.redfin.com/news/press-releases/redfin-reports-buyers-must-earn-111000-to-afford-the-typical-home-down-4-from-last-year/ while starter homes hit a record $260,508 in August 2025, rising 2.2% from a year earlier as sales continued to outpace that of higher-priced tiers. [4] Redfin. “Starter Home Report — August 2025.” Accessed February 26, 2026. https://www.redfin.com/news/starter-home-report-august-2025/
Down payment requirements also differ between first-time and repeat buyers. According to the National Association of Realtors, first-time buyers typically put down significantly less than repeat buyers, who often use equity from a previous home purchase to fund a larger down payment. According to the National Association of Realtors, the typical down payment for first-time buyers has ranged from 6% to 9% since 2018. [5] National Association of Realtors. “Tackling Home Financing and Down Payment Misconceptions.” Accessed February 26, 2026. https://www.nar.realtor/blogs/economists-outlook/tackling-home-financing-and-down-payment-misconceptions
Number of first-time homebuyers over time
Combining various datasets, we have plotted estimates of the proportion of first-time homebuyers over time and how many there were in each year from 2021 to 2025. In 2025, there were an estimated 852,600 first-time home buyers buying existing homes, a 59% decrease in four years, from the 2,080,800 first-time buyers in 2021. [2] National Association of Realtors. “2025 Profile of Home Buyers and Sellers.” Accessed February 26, 2026. https://prc-pa.net/wp-content/uploads/2025/11/NAR-2025-Profile-of-Buyers-Sellers.pdf [6] YCharts. “U.S. Existing Homes Sales.” Accessed February 26, 2026. https://ycharts.com/indicators/us_existing_home_sales_yearly
| Estimated First-Time Buyers by Year (2021-2025) | |
|---|---|
| Year | Estimated Number of FTBs |
| 2021 | 2,080,800 |
| 2022 | 1,307,800 |
| 2023 | 1,308,800 |
| 2024 | 974,400 |
| 2025 | 852,600 |
Date note: Data from National Association of Realtors Profile of Home Buyers and Sellers reports (2021–2025); annual existing-home sales data.
Sources
- [1] U.S. Department of Housing and Urban Development. “First-Time Homebuyer Definition.” Accessed February 26, 2026. https://archives.hud.gov/offices/hsg/sfh/ref/sfhp3-02.cfm
- [2] National Association of Realtors. “2025 Profile of Home Buyers and Sellers.” Accessed February 26, 2026. https://prc-pa.net/wp-content/uploads/2025/11/NAR-2025-Profile-of-Buyers-Sellers.pdf
- [3] Redfin. “Redfin Reports Buyers Must Earn $111,000 to Afford the Typical Home.” Accessed February 26, 2026. https://www.redfin.com/news/press-releases/redfin-reports-buyers-must-earn-111000-to-afford-the-typical-home-down-4-from-last-year/
- [4] Redfin. “Starter Home Report — August 2025.” Accessed February 26, 2026. https://www.redfin.com/news/starter-home-report-august-2025/
- [5] National Association of Realtors. “Tackling Home Financing and Down Payment Misconceptions.” Accessed February 26, 2026. https://www.nar.realtor/blogs/economists-outlook/tackling-home-financing-and-down-payment-misconceptions
- [6] YCharts. “U.S. Existing Homes Sales.” Accessed February 26, 2026. https://ycharts.com/indicators/us_existing_home_sales_yearly
- [7] National Association of Realtors. “2021 Highlights From the Profile of Home Buyers and Sellers.” Accessed on May 21, 2026. https://www.nar.realtor/sites/default/files/documents/2021-highlights-from-the-profile-of-home-buyers-and-sellers-11-11-2021.pdf
- [8] National Association of Realtors. “2022 Highlights From the Profile of Home Buyers and Sellers Report.” Accessed on May 21, 2026. https://www.gaar.com/images/uploads/2022-highlights-from-the-profile-of-home-buyers-and-sellers-report-11-03-2022_0.pdf
- [9] National Association of Realtors. “2024 Profile of Home Buyers and Sellers Highlights.” Accessed on May 21, 2026. https://www.nar.realtor/sites/default/files/2024-11/2024-profile-of-home-buyers-and-sellers-highlights-11-04-2024_2.pdf
- [10] National Association of Realtors. “2025 Profile of Home Buyers and Sellers.” Accessed on May 21, 2026. https://prc-pa.net/wp-content/uploads/2025/11/NAR-2025-Profile-of-Buyers-Sellers.pdf
