Hello, this is a post for those interested in real estate trends. Based on the recently released 2025 Profile of Home Buyers and Sellers report from NAR (National Association of Realtors), I’ll analyze the detailed data. This report is based on a survey of home buyers and sellers who completed transactions from July 2024 to June 2025, with surveys sent to about 170,000 people and valid responses forming the basis. Starting from 1981, this report allows for historical comparisons, and this year it highlights market extremes like inventory shortages, declining affordability, and increasing cash purchases. I’ve summarized and analyzed the key points, so please refer to them. The data is based on official NAR materials, including generational trends.
1. Market Overview: Inventory Shortages and Polarization
From mid-2024 to mid-2025, the U.S. housing market was characterized by extremely limited inventory and an average mortgage rate of 6.69%. Worsening affordability pushed potential first-time buyers out of the market, while homeowners benefited from rising asset values. The market showed polarization, with cash buyers reaching a record high of 26%, while first-time buyers hit a record low of 21%. This reflects the ‘lock-in effect’ of low-interest mortgages, where younger generations hesitate to move, and the market is driven by retirees.
2. Home Buyer Statistics: Decline in First-Time Buyers and Aging
- First-Time Buyers Ratio: 21% of all buyers, the lowest since data collection began in 1981. Before the 2008 financial crisis, it was typically 40%, but it has declined due to inventory shortages, low affordability and difficulties in saving for down payments. Even successful first-time buyers cited ‘finding the right home’ as the hardest step, with high rents, student loans, credit card/car loans as barriers to saving.
- First-Time Buyer Age: Median 40 years old, a record high. It has gradually risen from 30 in 2010, contrasting with the late 20s being common in the 1980s. This is due to longer saving periods, high rent and school loan debt.
- Repeat Buyers Age: Median 62 years old, a record high. It has increased significantly from 36 in 1981, influenced by younger homeowners delaying moves due to the low-interest mortgage lock-in effect.
- Presence of Children: 24% of buyers have children under 18, the lowest ever (compared to a high of 58% in 1985). Causes include declining birth rates, later childbearing, and aging repeat buyers. 21% cited childcare costs as a saving obstacle. Among first-time buyers, 32% have children; among repeat buyers, 22%.
- Down Payment Size: Median 19% for all buyers (10% for first-time, 23% for repeat). Highest since 1989 for first-time buyers, since 2003 for repeat buyers. Rising home equity allowed repeat buyers to make larger down payments, reducing monthly mortgage burdens.
- Down Payment Sources: 59% of first-time buyers used personal savings, 26% used financial assets (stocks, etc.). This year, financial assets surpassed family help (gifts or loans) for the first time, and inheritance rates are at a record high. This is due to aging first-time buyers having more opportunities to accumulate assets.
- Cash Purchases: 26% overall, a record high (mainly repeat buyers, some first-time included). This is data for primary residences, excluding investors or vacation homes.
- Purchase Reasons: Quality of neighborhood (59%), proximity to family/relatives (47%), job convenience (31% – down from 52% in 2014). The job reason has decreased despite reduced remote work. 19% of repeat buyers prioritized family proximity.
- Household Composition: 61% married couples, 21% single females, 9% single males. For first-time buyers: 50% married, 25% single females, 10% single males.
| Category | All Buyers | First-Time Buyers | Repeat Buyers |
| Median Age | – | 40 | 62 |
| Median Down Payment | 19% | 10% | 23% |
| Cash Purchase Ratio | 26% | – | 30% |
| Children Under 18 | 24% | 32% | 22% |
3. Home Seller Statistics: Longer Holding Periods and Agent Reliance
- Holding Period: Median 11 years before selling, a record high (up from 10 last year). Low-interest mortgage lock-in reduces motivation to move, leading to longer holds.
- Selling Reasons: Proximity to family/relatives (23%), home too small (12%), home too large (11%), job relocation (7%).
- Selling Method: 91% used real estate agents (up from 90% last year), FSBO (for sale by owner) 5%, a record low. 60% of FSBO sellers already knew the buyer.
- Selling Results: Sold at 100% of median listing price, median time on market 3 weeks, 36% reduced price (at least once). 24% offered incentives.
- Satisfaction: 88% very satisfied with the selling process.
4. Agent Usage and Buying/Selling Process
- Buyer Agent Usage: 88% used agents. Main help: Finding the right home (50%), negotiating terms (13%), negotiating price (12%), paperwork (7%).
- Search Duration: Median 10 weeks, viewed median 7 homes. Hardest part was finding the right home (55%), but 92% satisfied with the process.
- Seller Agent Usage: 91% used. Main expectations: Marketing to potential buyers, competitive pricing, selling within a specific timeframe. 87% would recommend their agent (72% definitely).
- Finding Agents: 40% from referrals, 66% from past agents or referrals (for sellers).
5. Generational Trend Analysis
According to NAR’s generational report, Baby Boomers (Younger Boomers 60-69, Older Boomers 70-78) account for 42% of buyers and 53% of sellers, dominating the market. Younger generations (Gen Z, Millennials) have high first-time buyer ratios but struggle with student loans (17% overall, 43% for Younger Millennials) and childcare costs.
| Generation | Buyer Ratio | First-Time Buyer Ratio | Median Income | Children Under 18 | Main Down Payment Source |
| Gen Z (18-25) | 3% | 62% | – | – | Family gifts/loans |
| Younger Millennials (26-34) | 12% | 71% | $108,300 | 67% (Older Millennials) | Savings 49%, family help 33% |
| Older Millennials (35-44) | 17% | 36% | $127,500 | 67% | Financial assets |
| Gen X (45-59) | 24% | 12% | $130,000 | – | Home sale proceeds |
| Younger Boomers (60-69) | 26% | 9% | – | 27% overall | Increased cash purchases |
| Older Boomers (70-78) | 16% | 5% | – | – | Inheritance/assets |
| Silent Generation (79-99) | 4% | 2% | $82,000 | – | Cash 59% |
• Buying Characteristics: Younger generations motivated by ‘desire to own a home’ (22%, 51% for Younger Millennials), older by ‘family proximity’ (14%, 29% for Older Boomers) or ‘want smaller home’ (8%, 19% for Older Boomers). Median home size 1,900 sq ft, single-family homes 75%. Median move distance 20 miles (35 miles for those 60+).
- Selling Characteristics: Younger Boomers most at 31%, holding periods shortest for Younger Millennials (5 years), longest for Older Boomers (16 years). Satisfaction lowest for Younger Millennials (71%).
- Diversity: Higher racial/ethnic diversity in younger generations (29% non-white for Older Millennials). Education levels: 78% bachelor’s or higher for Younger Millennials.
Analysis and Implications
This report reveals the aging and inequality in the U.S. housing market. The decline in first-time buyers threatens younger generations’ access to housing, and a market centered on repeat buyers and cash purchases could fuel price increases. Generationally, Millennials face delays due to student debt and childcare burdens, while Boomers prefer downsizing in retirement. Compared to the Korean market, rising rents and investor growth are similar, but the U.S. may see higher agent reliance. Policy-wise, improvements in affordability (e.g., down payment assistance) seem necessary.
If you have any questions, leave a comment! See you in the next post.
Shawn Realty 