The share of first-time homebuyers in the United States plummeted to a historic low of 21% over the past year, while the median age of first-time homebuyers entering the market soared to 40, according to the NAR 2025 Profile of Home Buyers and Sellers.https://t.co/Gi2titBruU
— Mortgage Professional America Magazine (@MPAMagazineUS) November 5, 2025
Household formation stalls as incomes lag
Of the 30.5 million Americans aged 18–24 in 2023, just 5.2 million headed their own household, while 14.8 million remained with their parents.
“The low rate of household formation among young adults reflects their lower levels of education, workforce participation, and independent financial resources,” the JCHS study said.
Among those able to form a household, nearly two-thirds were classified as low income, and 82% rented rather than owned their homes.
Frequent moves are the norm: over half of young adult households had lived in their current homes for less than a year.
“With such low incomes in what is often a transitional stage of life, young adults are especially likely to rent and move frequently,” the report said.