The National Association of Realtors’ annual Profile of Home Buyers and Sellers provides a high-level look at who is buying and selling homes and how consumer behavior is shifting. The 2025 report paints a picture where first-time buyers are struggling to break into the market while equity-rich sellers are more selective about how and when to list.
NewHomeSource parent company Zonda analyzed the full report, providing several key takeaways for the new-construction market and how they are impacting the market.
First-Time Buyers: Fewer and Older
In 2025, first-time buyers represented just 21% of total buyers, a 5% decline from the prior year and a far cry from the 40% average seen before 2008. The primary reason is no secret: affordability. Elevated mortgage rates, rising prices, and limited supply continue to sideline many prospective buyers.
As the share of first-time buyers has declined, the median age of this cohort has increased. A decade ago, the typical first-time buyer was 35. In 2025, that age climbed to 40. This increase is likely due to the same reasons the share of first-time buyers has declined.
However, just because buyers are facing affordability challenges does not mean they have given up. Over three-quarters of first-time buyers reported they made at least one compromise to purchase, from size to location to price.
First-time buyers may continue to find more attractive options in the new-home sector. Builders are continuing to leverage incentives and offering quick move-in (QMI) homes for buyers who are looking for affordable, upgraded, energy efficient alternatives to the limited resale supply.
Older Repeat Buyers, Longer Tenures
In 2025, the median age of repeat buyers was 62, nearly double the median age from four decades ago. However, this shift is not surprising given the age of first-time buyers has trended up for years. Homeowners stayed in their properties a median of 11 years before selling, up from a median of eight years before the pandemic.
The duration of stay is likely a reflection of elevated mortgage rates. Many homeowners have rates well below the current market average and electing to keep their current rate remains a more attractive option than moving and assuming a much higher rate. The longer duration of tenure supports demand for the new-home market. If fewer people are moving, there are fewer resale listings and home shoppers are more likely to turn to the new-home market.
However, homeowners with major life events are still moving, regardless of the rate environment. Among repeat buyers, 19% purchased a home to be closer to family or friends while 7% cited a change in family situation, such as a new grandchild. The largest share of repeat buyers (22%) elected to move to right-size, suggesting an active move-up and move-down market.
Shifting Demographics
Among recent buyers, just 24% had children under 18, the lowest share on record. Among first-time buyers, the share was marginally higher at 32%. This is likely the result of delayed family formation, lower birth rates, affordability pressures, and rising childcare costs. Fewer families buying is impacting where builders are buying land and building homes, with less emphasis on school districts alone.
Down Payment Trends
Down payments for first-time and repeat buyers reached multi-decade highs in 2025. First-time buyers put down a median down payment of 10%—the highest since 1989—while repeat buyers put down approximately 23%—the highest since 2003. Repeat buyers allocating more toward down payments reflects the equity gains they have accumulated over the past decade while the increase in down payments from first-time buyers reflects the high level of competition in this buyer cohort.
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