First-Time Home Buyer Share Falls to Historic Low of 21%, Median Age Rises to 40
The National Association of REALTORS® (NAR) has released its 2025 Profile of Home Buyers and Sellers, revealing a historic shift in who is entering the housing market. First-time buyers accounted for only 21% of all U.S. home purchases between July 2024 and June 2025—the lowest share ever recorded. The median age of a first-time buyer rose to 40, also setting a new record. NAR Deputy Chief Economist Jessica Lautz attributes this shift to rising financial pressures. “This year’s data shows that first-time buyers are older, more financially established, and taking longer to enter the market,” Lautz explained, citing high mortgage rates, limited affordability, and record personal debt as key drivers. Affordability Shrinks the First-Time Buyer Pool Historically, first-time homebuyers made up 38–40% of the market. Today’s 21% share highlights how affordability and inventory shortages are reshaping the American Dream. Financial barriers are intensifying: Median down payment for first-time buyers reached 10%, the highest since 1989. 59% used personal savings to fund their purchase. 26% drew from retirement or investment accounts. 22% received financial assistance from family. Older Buyers Dominate the Market The challenges facing new buyers stand in stark contrast to repeat buyers, whose median age has climbed to 62. Nearly 30% of repeat buyers paid in cash, underscoring the widening financial gap between new entrants and established homeowners. Across all buyers: The median age reached 59. Only 24% had children under 18—a historic low. The Cost of Waiting: Lost Equity NAR Executive Vice President and Chief Advocacy Officer Shannon McGahn warned that delayed homeownership could cost families over $150,000 in lost lifetime equity. “Buying a home in your early thirties used to be part of the American Dream. Now, families are renting longer and buying later—or not at all.”— Shannon McGahn, NAR Policy Solutions and Lifestyle Adjustments NAR continues to push lawmakers to increase affordability and supply, advocating for: Zoning reform and density expansion Faster, modernized permitting Down-payment assistance programs Financial literacy initiatives for first-time buyers Meanwhile, buyers themselves are adapting. More are: Living with parents to save longer Renting past age 35 Relocating to smaller metros or rural areas to find affordability Despite barriers, McGahn emphasized that homeownership remains a foundational pillar of wealth and community stability. “Housing is foundational to our economy and communities. These findings should motivate lawmakers to act—because when we make homeownership accessible, everyone benefits.” ???? Read the full NAR press release: https://www.nar.realtor/newsroom/first-time-home-buyer-share-falls-to-historic-low-of-21-median-age-rises-to-40 Source: National Association of REALTORS®
Almost 90% of Metro Areas Posted Home Price Increases in Third Quarter of 2024 – November 7, 2024
“ The National Association of REALTORS® (NAR) reported that approximately 87% of U.S. metro markets registered home price gains in the third quarter of 2024, despite 30-year fixed mortgage rates ranging from 6.08% to 6.95%. Of the 226 metro areas tracked, seven percent recorded double-digit price increases, down from 13% in the previous quarter, according to NAR’s latest quarterly report. NAR Chief Economist Lawrence Yun noted that home prices remain stable, with homeowners having accumulated an average of $147,000 in housing wealth over the past five years. Distressed property sales and mortgage defaults are at historic lows, suggesting minimal risk of a market crash. The national median single-family existing-home price rose 3.1% year-over-year to $418,700, compared with a 4.9% increase in the prior quarter. Regional trends showed the South accounting for the largest share of single-family sales at 45.1%, with 0.8% price growth. Other regions reported year-over-year increases of 7.8% in the Northeast, 4.3% in the Midwest, and 1.8% in the West. The report identified the top metro areas with the largest year-over-year price increases, all above 10.6%. The leading markets included Racine, Wis. (13.7%); Youngstown-Warren-Boardman, Ohio-Pa. (13.1%); Syracuse, N.Y. (13.0%); and four markets in Illinois, including Peoria (12.4%), Springfield (12.3%), Rockford (11.1%), and Decatur (10.9%). Other notable markets included Burlington-South Burlington, Vt. (11.7%), Shreveport-Bossier City, La. (11.5%), and Norwich-New London, Conn. (10.6%). Among the most expensive metro areas, eight of the top ten were in California, including San Jose-Sunnyvale-Santa Clara ($1,900,000), Anaheim-Santa Ana-Irvine ($1,398,500), San Francisco-Oakland-Hayward ($1,309,000), San Diego-Carlsbad ($1,010,000), Salinas ($959,800), San Luis Obispo-Paso Robles ($949,800), Los Angeles-Long Beach-Glendale ($947,500), and Oxnard-Thousand Oaks-Ventura ($947,400). Other high-priced areas included Urban Honolulu, Hawaii ($1,138,000) and Boulder, Colo. ($832,200). Nearly 13% of markets experienced price declines in the third quarter, slightly higher than the 10% reported in the prior quarter. Housing affordability showed signs of improvement as mortgage rates declined. For a typical existing single-family home with a 20% down payment, monthly payments fell to $2,137, down 5.5% from the previous quarter and 2.4% from one year ago. Families spent an average of 25.2% of their income on mortgage payments, compared with 26.9% in the prior quarter and 27.1% one year ago. First-time buyers saw modest improvements in affordability. For a starter home priced at $355,900 with a 10% down payment, the monthly payment decreased to $2,097, down 5.5% from the prior quarter. First-time buyers typically spent 38% of their family income on mortgage payments, down from 40.6% previously. The qualifying income required to purchase a home with a 10% down payment dropped below $100,000 in 42.5% of markets, down from 48% in the previous quarter. Only 2.2% of markets allowed families earning under $50,000 to afford a home, slightly lower than the prior quarter’s 2.7%. Read the full press release here: https://www.nar.realtor/newsroom/almost-90-of-metro-areas-posted-home-price-increases-in-third-quarter-of-2024 SOURCE National Association of REALTORS® (NAR) “
First-Time Home Buyers Shrink to Historic Low of 24% as Buyer Age Hits Record High – November 4, 2024
The National Association of REALTORS® (NAR) reported that the first-time homebuyer market share declined to a historic low of 24% in 2024, down from 32% the previous year, while the median age of buyers reached record highs, according to NAR’s 2024 Profile of Home Buyers and Sellers. The survey, covering transactions between July 2023 and June 2024, also found that first-time buyers have a median age of 38, repeat buyers 61, and the overall median age is 56, reflecting a continuing trend of older homebuyers entering the market. NAR Deputy Chief Economist Jessica Lautz explained that first-time buyers face challenges including high home prices, elevated mortgage rates, and limited inventory. As a result, this group is older and earning higher incomes than prior generations, while current homeowners are increasingly able to purchase using cash or substantial down payments. The report indicated that the median household income for all homebuyers rose to $108,800 in 2023. First-time buyers reported a median income of $97,000, up from $95,900 in 2022, representing a $26,000 increase over two years. Repeat buyers reported a median income of $114,300, up from $111,700. Married couples accounted for 62% of buyers, single female buyers 20%, single males 8%, and unmarried couples 6%, with first-time single female buyers increasing by 5%. Ethnic composition showed 83% of buyers identifying as White or Caucasian, 7% as Black or African American, 6% as Hispanic or Latino, 4% as Asian or Pacific Islander, and 3% as other ethnicities. The share of buyers without children under 18 rose to 73%, the highest on record, while 17% purchased multigenerational homes for reasons including cost savings, caregiving for aging parents, and children returning home. Real estate agents played a central role in home purchases, with 86% of buyers utilizing their services and 88% of transactions completed through an agent or broker. Buyers reported high satisfaction with agents’ responsiveness, knowledge, honesty, and market expertise, with 88% indicating they would use or recommend their agent again. Median down payments in 2024 were 18% overall, 9% for first-time buyers, and 23% for repeat buyers—the highest levels recorded for first-time buyers since 1997 and repeat buyers since 2003. First-time buyers primarily relied on savings (69%), with others using loans or gifts (25%), financial assets (21%), or inheritances (7%). Cash purchases reached a record 26% of transactions. Home sellers also reached record ages, with the typical seller at 63. Married couples represented 69% of sellers. The top reasons for selling included relocating closer to friends and family (23%), the home being too small (12%) or too large (11%), and neighborhood changes (10%). Ninety percent of sellers used a real estate agent, while only 6% opted for for-sale-by-owner, marking a record low. Most sellers would recommend their agent to others. NAR President Kevin Sears highlighted the value of real estate professionals in navigating the buying and selling process, especially in challenging market conditions, citing their expertise as essential for successful transactions. Read the full press release here: https://www.nar.realtor/newsroom/first-time-home-buyers-shrink-to-historic-low-of-24-as-buyer-age-hits-record-high SOURCE National Association of REALTORS® (NAR)
10,000 Realtors® Set to “Bring on Business” at NAR NXT in Boston – October 31, 2024
The National Association of REALTORS® (NAR) announced that more than 10,000 REALTORS® from across the United States and several international markets are expected to attend the 2024 NAR NXT, The REALTOR® Experience, taking place in Boston, Massachusetts, from November 8 to 10, 2024. The event, themed “Bring on Business,” will be held at the Boston Convention and Exhibition Center and is designed to connect real estate professionals with industry insights, education, and new business opportunities. According to the announcement, this year’s conference will feature over 100 educational sessions and an extensive trade expo showcasing more than 250 exhibitors. The program will address key areas of professional interest, including residential and commercial real estate, technology applications, housing policy, and business management. NAR stated that the event provides attendees with opportunities to access new market information, learn about technological innovations, and network with peers and industry leaders. The schedule includes presentations from economists, analysts, and thought leaders offering data-driven perspectives on market conditions and emerging trends. NAR Chief Economist Lawrence Yun will present his annual housing and economic forecast, focusing on factors influencing market performance and affordability. His analysis traditionally outlines national and regional housing outlooks, providing REALTORS® with context for business planning in the year ahead. Other keynote speakers include statistician and FiveThirtyEight founder Nate Silver, who will discuss election data and political forecasting during the Federal Legislative and Political Forum. Leadership strategist Dr. Jennifer Keitt will address professional resilience and emotional intelligence, while management researcher Marcus Buckingham will share insights on strengths-based leadership and team performance. The closing keynote will be delivered by former Major League Baseball player David Ortiz, widely known as “Big Papi.” His address will focus on teamwork and personal motivation, drawing parallels between sports leadership and sustained success in professional fields. The trade expo is expected to be one of the largest in the real estate sector, featuring products and services ranging from customer relationship management platforms and data analytics tools to marketing solutions and financial service providers. The exhibition allows REALTORS® to explore new technologies and resources that support client service, productivity, and operational efficiency. This year’s NAR NXT will also include policy discussions, market intelligence sessions, and leadership forums addressing current issues in housing and real estate practice. Topics will cover legislative updates, fair housing, sustainability, and the role of technology in business transformation. Attendees will have the opportunity to engage with industry experts, policymakers, and service providers to exchange insights and strategies. Hosting the event in Boston provides a backdrop consistent with the conference’s focus on innovation and professional development. The city’s real estate market, known for its competitive urban environment and ongoing redevelopment, offers a relevant context for discussions about affordability, infrastructure, and market adaptation. NAR noted that the 2024 conference continues its commitment to advancing professionalism and collaboration within the real estate community. The event serves as an annual platform for education, governance meetings, and recognition of member achievements. It is regarded as a key opportunity for REALTORS® to evaluate current business conditions, identify new opportunities, and prepare for the upcoming year. Read the full press release here: https://www.nar.realtor/newsroom/10000-realtors-set-to-bring-on-business-at-nar-nxt-in-boston SOURCE National Association of REALTORS® (NAR)
National Association of Realtors® Partners with Affiniti to Introduce NAR World Elite Business Mastercard® – October 29, 2024
The National Association of REALTORS® (NAR) announced a new partnership with Affiniti through the NAR REALTOR Benefits® program, introducing the NAR World Elite Business Mastercard, a financial product designed specifically for real estate professionals. The announcement was made from Washington, D.C., on October 29, 2024, and highlights NAR’s efforts to expand financial tools and resources available to its members. The newly introduced card offers cash-back rewards and business management features tailored to meet the needs of REALTORS®. According to NAR, the card provides 5% cash back on marketing expenses, up to 2.1% cash back on all other purchases, and includes a $500 sign-on bonus for qualifying new users. The benefits are structured to help real estate professionals manage business costs more effectively while maximizing returns on routine expenses tied to their work. The NAR World Elite Business Mastercard is designed for use by agents, brokers, and firms seeking flexible financial solutions to support operations such as marketing, travel, and client-related expenditures. In addition to its rewards program, the card features no annual fees and allows users to issue unlimited employee cards at no additional cost. These features aim to simplify expense management for teams and independent contractors who often juggle multiple business costs across transactions and marketing campaigns. An important aspect of the offering is its inclusion of integrated expense management software. The system provides users with tools to monitor spending, categorize transactions, set employee spending limits, and upload or request receipts. NAR stated that these features are intended to streamline administrative processes and enhance transparency in business budgeting, particularly for small to mid-sized brokerages and independent REALTORS® who handle their own accounting. NAR emphasized that applying for the new card will not affect an applicant’s personal credit, positioning the product as a business-focused financial solution separate from individual credit lines. The partnership with Affiniti provides NAR members with access to a dedicated support structure for cardholders, including account management assistance and resources for optimizing reward use. Rhonny Barragan, NAR’s vice president of strategic alliances, noted that the initiative aligns with the association’s broader goal of offering members tangible tools that contribute to business growth. In the official announcement, Barragan stated that the card provides REALTORS® with “financial flexibility to drive growth” by offering options that address common business expenses and reinvestment opportunities in marketing. The launch of the NAR World Elite Business Mastercard reflects an ongoing trend within professional organizations to develop specialized financial products for their members. Such partnerships allow associations to tailor financial offerings to industry-specific needs, providing members with enhanced purchasing power and tools that align with their professional activities. Through the REALTOR Benefits® program, NAR continues to expand its range of partnerships in areas such as insurance, marketing services, technology, and travel. Each program component is designed to support operational efficiency and professional development for members. The introduction of the new Mastercard adds a financial management element to this portfolio, complementing existing benefits already available to REALTORS®. The Affiniti partnership also highlights a broader effort to integrate digital financial tools into everyday business operations. With expense-tracking and analytics software built directly into the card program, REALTORS® can maintain a clearer overview of business finances, streamline reimbursement processes, and plan budgets more accurately based on real-time data. By tailoring cash-back rewards toward marketing, NAR aims to support one of the most significant cost areas for agents and brokers. Marketing expenses, which often include advertising, client engagement tools, and digital outreach campaigns, represent a major portion of operational spending for professionals in the real estate field. The enhanced 5% cash-back rate for marketing expenditures underscores the card’s design as a resource for reinvestment in business growth activities. The NAR World Elite Business Mastercard is now available for eligible NAR members through Affiniti’s platform. The program is part of a growing initiative to provide financial solutions aligned with the unique structure of real estate work, where independent contractors and small business owners require accessible, flexible tools to manage their finances efficiently. Read the full press release here: https://www.nar.realtor/newsroom/national-association-of-realtors-partners-with-affiniti-to-introduce-nar-world-elite-business-mastercard SOURCE National Association of REALTORS® (NAR)
