70+ First-Time Homebuyer Stats: Market Reality Check (2025)

We’ve compiled over 70 essential statistics about first-time homebuyers in 2025, drawing from REsimpli’s latest market survey and trusted industry sources like NAR and Bankrate. Our data spans buyer demographics, financial trends, property preferences, and market barriers, revealing key insights.

Top First-Time Homebuyer Statistics (Editor’s Pick)

First-time homebuyers face unique challenges in today’s real estate market, shaping their financing choices and housing preferences. These statistics reveal the key trends and strategies new buyers are using to achieve homeownership in the current market.

• 56.00% of people would opt for suburban housing in 2025
• 67.42% of people believe modular/small homes will become mainstream
• 62.67% of people believe urban housing will become more affordable in 2025
• 80.42% of people would spend significantly on renovations for a property if they can get an affordable home
• 45.58% of people are mostly concerned about high property prices in 2025
• 72.58% of the respondents would opt to increase their mortgage terms to be able to afford a home in 2025
• 33.67% of people think that the housing market is worsening in 2025
• 60% of first-time buyers use savings as their primary source for a down payment
• 29% of first-time buyers use gift funds from family or friends for a down payment
• First-time buyers have a median household income of $95,900, compared to $111,700 for repeat buyers
• The average first-time homebuyer down payment across all states is $8,220, which is 6% of the average first-time home price

Demographic Profile

Understanding who today’s first-time homebuyers are provides crucial insights into market dynamics and societal shifts. These statistics reveal key trends in buyer age patterns, racial distribution, employment status, and household composition of those entering the housing market for the first time.

• The average first-time homebuyer is 35 years old as of 2023, down from 36 years old in 2022
• The average age of first-time homebuyers has increased from 29 in 1981 to 35 in 2023
• 81% of first-time homebuyers are White
• 7% of first-time homebuyers are Hispanic
• 7% of first-time homebuyers are Black/African American
• 6% of first-time homebuyers are Asian/Pacific Islander
• 64% of first-time buyers were married couples
• 18% of first-time buyers were single females, compared to 9% who were single males
• 94% of individuals who requested a first-time buyer mortgage quote in 2022-23 were employed full-time
• 40% of first-time buyers in 2022-23 were couples without dependents
• 32% of first-time buyers in 2022-23 were one-person households

Sources: Uswitch, NAR

Financial Aspects

Understanding the financial requirements of first-time home purchases is crucial for prospective buyers navigating this significant milestone. These statistics reveal the typical financial profile of first-time buyers, from income and down payments to credit scores and debt obligations, showing what it takes to enter today’s housing market.

• First-time buyers have a median household income of $95,900, compared to $111,700 for repeat buyers
• The average first-time homebuyer down payment across all states is $8,220, which is 6% of the average first-time home price
• The average credit score for a first-time homebuyer is 746, while repeat buyers have an average score of 754
• Down payments for first-time buyers average 8% of the home’s purchase price
• The average monthly mortgage payment for first-time homebuyers is $2,200
• 60% of first-time buyers use savings as their primary source for a down payment
• 29% of first-time buyers use gift funds from family or friends for a down payment
• 88% of first-time homebuyers financed their purchase with a mortgage
• 11% of first-time buyers had student loan debt with a median balance of $30,000

Sources: NAR, Bankrate

Market Participation

First-time homebuyers represent a vital segment of the housing market, with their participation rates serving as key indicators of market accessibility. These statistics highlight the demographic composition of new buyers across age groups, illustrating how different generations are transitioning into homeownership.

• First-time buyers made up 32% of all homebuyers in 2023, an increase from 26% in 2022
• 70% of homebuyers aged 24-32 were first-time buyers
• 46% of homebuyers aged 33-42 were first-time buyers
• 21% of homebuyers aged 43-57 were first-time buyers
• 9% of homebuyers aged 58-67 were first-time buyers
• 7% of homebuyers aged 68-76 were first-time buyers
• In 2020, there were an estimated 1,782,500 first-time homebuyers
• 52% of millennials are now homeowners, crossing the 50% mark for the first time in 2022
• Millennials accounted for 38% of home buyers in 2023
• In 2023, there were 293,339 first-time buyers in the UK, a 21% decrease from 2022 

Sources: Finder, The Motley Fool, NAR

Property Characteristics

The types of homes and neighborhoods that first-time buyers choose provide crucial insights into evolving housing preferences. These statistics detail the characteristics of starter homes, from price points and square footage to location preferences, revealing how new homeowners are adapting to current market conditions.

• The median price for a starter home in June 2023 was $243,000
• The average size of a starter home in the U.S. as of August 2023 is 1,250 square feet
• The median sale price of all homes in the U.S. in June 2023 was $426,056
• 71% of first-time buyers’ mortgage quotes were for houses
• 28% of first-time buyer quotes in 2022-23 were for flats
• 55% of first-time buyers toured at least 10 homes before making a purchase
• 48% of first-time homebuyers paid asking price or higher for their home
• 56.00% of people would opt for suburban housing in 2025
• 67.42% of people believe modular/small homes will become mainstream
• 62.67% of people believe urban housing will become more affordable in 2025
• 80.42% of people would spend significantly on renovations for a property if they can get an affordable home

Sources: REsimpli, NAR, Redfin, Uswitch, Five Star Painting

Buying Process

The journey to homeownership involves multiple key decisions and steps that shape the buying experience for first-time buyers. These statistics illuminate how new buyers navigate the home search process, from their preferred search methods to financing choices, offering insights into the modern homebuying journey.

• First-time homebuyers spend an average of 3 months searching for a home
• The most common loan type for first-time buyers is a conventional loan (62%)
• FHA loans were used by 26% of first-time buyers
• 95.01% of home buyers used the Internet to search for homes
• 50.31% of home buyers first found their home through an online home listing
• 21.42% of home buyers first found their home through a real estate agent
• 78.90% of home buyers used a mortgage lender or bank to obtain financing

Sources: NAR, Homebuyer

Barriers to Entry

The challenges facing first-time homebuyers are crucial to understanding housing market accessibility today. These statistics reveal the primary obstacles preventing potential buyers from entering the market, from affordability concerns to rising interest rates, showing how economic factors impact the path to homeownership.

• 75% of first-time homebuyers cited affordability as their top concern
• 39% of first-time buyers considered delaying their purchase due to high mortgage rates
• 67% of millennials have no savings for a home down payment
• More than 40% of first-time homebuyers say student loans make it harder to save for a down payment
• 30% of home buyers had their mortgage application rejected due to their debt-to-income ratio
• Debt delayed most home buyers by four years before they were able to purchase a home
• 49% of first-time buyers in 2022-23 stated that house prices would need to fall between 11%-20% before they would consider purchasing a home
• 45.58% of people are mostly concerned about high property prices in 2025
• 72.58% of the respondents would opt to increase their mortgage terms to be able to afford a home in 2025
• 33.67% of people think that the housing market is worsening in 2025
• 61.5% of people believe that institutional landlords will affect people’s purchasing ability
• 63.92% think economic factors and rising interest rates will impact home purchases in 2025

Sources: REsimpli, NAR, Uswitch, The Motley Fool, Bankrate, Consumer Affairs

Buyer Motivations & Preferences

Understanding what drives first-time buyers to enter the housing market reveals important shifts in housing attitudes. These statistics illuminate the key factors influencing buying decisions, from financial considerations to lifestyle changes, showing how personal priorities shape the transition to homeownership.

• 79% of first-time homebuyers prefer buying over renting due to long-term financial benefits
• 88% of home buyers think that buying a home is still a good financial investment
• 31.26% of home buyers reported that their primary reason for purchasing a home was wanting to own instead of rent
• 14.85% of home buyers purchased a home to be closer to family, friends, or relatives
• 10.34% of home buyers purchased a home because of a job relocation or move
• Over 35% of UK renters plan to buy their first home within the next 5 years
• 80% of home buyers prefer a move-in-ready house over a fixer-upper
• 62.83% of people looking to buy a new home are seeking lifestyle changes
• 65.00% of people think cultural shifts will significantly impact the housing demand

Sources: REsimpli, Uswitch, Coldwell Banker, Homebuyer, Consumer Affairs, NAR

Conclusion

First-time homebuyers are adapting to market challenges through innovative financing and housing choices, showing increased flexibility in their approach to homeownership. As housing preferences evolve, we expect to see even more creative pathways to homeownership emerge.