First-Time Homebuyers

Watch Now: First-Time Buyer

First-Time Buyer - Female real estate agent with her client

Purchasing your first home in this market isn’t easy, but these determined buyers are up for the challenge. Watch as real estate rookies discover creative pathways to home ownership by following the lead of an agent who is a REALTOR® on First-Time Buyer!

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Quick Takeaways

First-time buyers made up 26 percent of all home buyers, a decrease from 34 percent last year.
Seventy percent of Younger Millennials and 46 percent of Older Millennials were first-time home buyers, more than other age groups.
21 percent of Gen Xers were also first-time home buyers.

Source: 2023 NAR Home Buyer and Seller Generational Trends (National Association of REALTORS®, 2023)

While both first-time home buyers and repeat home buyers share the goal of acquiring a property, their differing experiences, financial situations, goals, market knowledge, and emotional factors contribute to their unique perspectives and needs during the home buying process.

First-time home buyers often have limited funds for a down payment and may require assistance in securing financing. They might not have built up substantial equity from a previous home sale. These buyers may be focused on achieving the milestone of homeownership and establishing a stable living situation. They may prioritize finding an affordable property that meets their immediate needs. They may need to spend more time researching the market and seeking guidance from real estate professionals than repeat buyers who are more familiar with the process. First-time buyers may experience more anxiety and uncertainty during the home buying process due to their lack of experience. The decision to purchase a home is a significant financial commitment, and first-time buyers may feel more pressure to make the right choice.

See References for more information.

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New Home Buyers Tell All

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First-Time Homebuyer Loans & Grants

Find loans and grants available for first-time home buyers so you can finance your mortgage and reduce fees.

References

NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require a password.

First-Time Homebuyer Characteristics & Concerns

Home Buyers and Sellers Generational Trends (National Association of REALTORS®, 2024)

First-time buyers made up 32 percent of all home buyers, an increase from 26 percent last year. Seventy-five percent of Younger Millennials and 54 percent of Gen Xers were first-time home buyers. Behind these groups, 44 percent of Older Millennials were also first-time home buyers.

First-Time Homebuyers: From 2023 Challenges to 2024 Realities (HousingWire, June 18, 2024)

Average Stats for First-time Home Buyers 2023 vs 2013

Share of First-Time Home Buyers Among All Home Buyers in The United States From 2003 to 2023 (Statista, May 6, 2024)

Share of First-time Home Buyers Among All Home Buyers in the U.S. 2003-2023

Liberty Street Economics First-Time Buyers Series

In this series of posts, a better measure of first-time buyers is introduced and the dynamics of this group is examined over the past seventeen years. In the next post, the characteristics of first-time buyers is described. The series concludes by examining the sustainability of homeownership for first-time buyers.

A Better Measure of First-Time Homebuyers [Part 1 of 5] (Liberty Street Economics, Apr. 8, 2019)

Who’s on First? Characteristics of First-Time Homebuyers [Part 2 of 5] (Liberty Street Economics, Apr. 10, 2019)

The Sustainability of First-Time Homeownership [Part 3 of 5] (Liberty Street Economics, Apr. 12, 2019)

Is the Recent Tax Reform Playing a Role in the Decline of Home Sales? [Part 4 of 5] (Liberty Street Economics, Apr. 15, 2019)

Did Tax Reform Raise the Cost of Owning a Home? [Part 5 of 5] (Liberty Street Economics, Apr. 17, 2019)

Working With First-Time Homebuyers

First-Time Home Buyer Benefits: How to Qualify (NerdWallet, March 12, 2024)

In general, you could be considered a first-time home buyer if:

You’ve never owned a home.
You’ve previously owned a home, but for the past three years (or more), you’ve been renting or living in a place someone else owns.
You owned a home with a spouse but now are buying a home on your own.

A Real Estate Agent’s Guide to Calming First-Time Homebuyers (Real Trends, Oct. 23, 2022)

“In addition to rising rates, first-time homebuyers have the normal fears of purchasing the right property, knowing what they can afford, knowing what lender to pick, and putting down a large chunk of change for the first time. Being able to address these concerns will make the difference in a home sale, but also a homebuyer continuing with you as a realtor over someone else.“

Yikes! 6 Surprising Problems First-Time Homebuyers Often Overlook (realtor.com®, Aug. 8, 2022)

“Failure to look at all the details can have first-time homebuyers missing damaged or aging systems,” says Craig McCullough, a real estate agent with The Catalyst Group at Compass in Washington, DC. “A financial and often emotional cost comes when these systems break after closing and the repair or replacement is the burden of the buyers.”

How To Qualify for a First-Time Homebuyer Loan (the balance, May 4, 2022)

“First-time homebuyer loans are designed to make homeownership accessible to first-time buyers, especially those with lower incomes. They may offer benefits like down payment or closing cost assistance, loan forgiveness, help with lender fees, or deferred payments. Programs are usually offered by your state or locality and may have both income and purchase price restrictions. These loans might not be the right financial choice for every buyer, even if it is your first time purchasing a home.”

A Guide to First-Time Home Buyer Programs, Loans and Grants (Rocket Mortgage, March 28, 2022)

This guide covers some of the most advantageous grants, home loans and programs for first-time home buyers.

How Agents Can Help First-Time Home Buyers (REALTOR® Magazine, Nov. 9, 2020)

“Your job as an agent is still to make sure your buyer doesn’t make a big mistake. You still need to follow through on all of the necessary due diligence even though the buyer has been put in a position to make an immediate decision. This is about them, not about you.”

The Everything Guide to Buying Your First Home (HouseLogic)

This article shows not only the major steps taken during the home-buying process, but also explains the relationships and experts needed along the way. There is also a handy infographic that outlines the home-buying process from start to finish.

eBooks & Other Resources

eBooks.realtor.org

The following eBooks and digital audiobooks are available to NAR members:

100 Questions Every First-Time Home Buyer Should Ask (eBook)

The Complete Idiot's Guide to Buying a Home (Audiobook, eBook)

The Essential First-Time Home Buyer's Book (eBook)

The Everything Homebuying Book (Audiobook, eBook)

Home Buying for Dummies (eBook)

Home Buying Without the BS! (eBook)

How to Buy Your First Home (eBook)

Next Generation Real Estate (eBook)

The Real Estate Process (eBook)

A Survival Guide for Buying a Home (eBook)

The Unofficial Guide to Buying a Home (eBook)

Books, Videos, Research Reports & More

As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.

Buying Solo (Chicago, IL: Penguin Group, 2005) HF 5438 Su6

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