Share of first-time buyers sinks to record low 

No matter what stage of life they're in, today's homebuyers are increasingly likely to have already owned a home — and less likely to be embarking on the process for the first time, according to the latest Home Buyers and Sellers Generational Trends report from the National Association of Realtors.

Released April 15, the report surveyed more than 6,000 buyers who purchased a home between July 2024 and June 2025.

Share of first-time buyers drops — again

Just 21% of buyers were first-timers — "the lowest share on record," the report noted, with NAR data going back to 1981. Last year's report pegged the share of first-time buyers at 24%, which was already a significant drop from 32% one year earlier.

Nearly every generation saw a drop, with younger millennials accounting for the biggest decline. The report estimates that 60% of younger millennial buyers were first-timers, down from 71% a year ago. Gen X was the only group with an increase — albeit small — from 20% to 21%, while there was no change among older baby boomers.

Younger millennials continue to face significant affordability challenges and a lack of starter homes, noted NAR Deputy Chief Economist Jessica Lautz, while many Gen Xers have finally rebounded financially after being hit hard by the Great Recession.

Many younger millennials "are still saving for a down payment and are unable to compete with buyers who can make larger or all-cash offers," Lautz said in an email. "Younger buyers are struggling to enter the market, while older generations with housing equity are able to move more easily."

As part of the "sandwich generation" balancing both aging parents and adult children, Gen Xers are contributing more to multigenerational living, according to Lautz. "This can lead to first-time purchases later in life and reflects more nontraditional paths to homeownership," she said.

Boomers stay active in the market

Baby boomers remain the dominant homebuyer generation, representing 42% of the market, followed by millennials (26%) and Gen Xers (25%). Though the share of Gen Zers is starting to grow, this group still only represents 4% of all recent buyers. The silent generation similarly accounted for just 4%.

Baby boomers also led among sellers at 55%, followed by Gen Xers (23%), millennials (16%), the silent generation (4%) and Gen Zers (2%).

Younger generations chart a different path

Big changes in the types of households making purchases are also occurring. Only about 1 in 4 buyers (24%) had children under the age of 18 living at home — "a historic low," the report noted.

Half of recent buyers were married couples, down from 62% one year earlier, while the share of unmarried couples ticked up from 6% to 10%. Single females represented 25% of buyers, up from 20% a year ago, and the share of single male buyers also increased from 8% to 11%.

Gen Zers are the primary drivers of these household shifts, according to Lautz.

"What stands out about Gen Z is how confidently they're beginning to define homeownership for themselves," Lautz said. "They may still be a small share of the market, but they're already challenging old assumptions about who buys a home and when. For many of these buyers, marriage and children are no longer the defining milestones before a home purchase. The driving force is simply the desire to own a home of their own."

What's motivating sellers

The opportunity to move closer to friends or family was the most popular reason survey respondents cited for selling a home (26%). Concerns that their house was too small or too big were next at 10% each, followed by changing family circumstances, such as a marriage, divorce or the birth of a child (8%).

But settling on an accurate list price has grown difficult amid the country's shift from a seller-friendly market to one that favors buyers. The report found that 51% of all recent sellers had to reduce their asking price four times or more, with millennials topping the list at 58% and the silent generation closely behind at 56%.

Even though price reductions are happening more frequently, most buyers still appear to be paying close attention to a listing's asking price. The median purchase price of a home was 99% of the asking price — down slightly from 100% one year earlier — with only 8% of all buyers paying less than 90% of the list price and just 3% paying over 110%.

Phone calls more important than social media activity

While younger buyers may prefer texting, 64% of those under 36 said receiving updates via phone calls is important to them.

Another possible surprise for real estate agents: Two staples in marketing — being active on social media and sending out email newsletters — rank low in importance. Only 15% of all buyers considered it essential for agents to have an active social media presence, while 7% viewed email newsletters as important.