Who's Actually Buying Homes Right Now, and What It Means for You?
I want to show you a number that stopped me in my tracks when I first read it, because I think every first-time buyer reading this deserves to know it too.
According to the National Association of REALTORS' 2025 Profile of Home Buyers and Sellers, first-time buyers made up just 21% of all home purchases last year. That's a record low. The median age of a first-time buyer is now 40 years old, also a record, up from around 30 back in 2010. If you've felt like homeownership is taking longer to reach than it did for your parents' generation, the data agrees with you. This isn't in your head.
Here's why I'm telling you this, and it's not to discourage you. It's the opposite.
Why this number matters to you personally
That same NAR report found that the overall median down payment climbed to 19%, the highest it's been in nearly 30 years, driven largely by repeat buyers who are using significant home equity to make bigger, sometimes all-cash, purchases. All-cash purchases hit a record 26% of all transactions.
I want to be very clear about something: that 19% figure is not what you, as a first-time buyer, actually need. The same report shows first-time buyers put down a median of just 10%. And 22% of first-time buyers received help from a gift from family to get there. If you don't have a relative who can gift you part of a down payment, you are not out of options. You have more of them than you probably think.
The part almost nobody tells first-time buyers about
Texas has real, funded, legitimate programs built specifically to help first-time buyers close that gap. I bring these up with almost every first-time client I work with, because most people have never heard of them.
TSAHC's Homes for Texas Heroes and Home Sweet Texas programs. The Texas State Affordable Housing Corporation offers a 30-year fixed-rate mortgage paired with down payment and closing cost assistance of up to 5% of your loan amount, structured as a grant. For an FHA, VA, or USDA loan, you'll typically need a credit score of at least 620. For a conventional loan option, that minimum moves to 640. Every buyer using this program completes a HUD-approved homebuyer education course before closing, which, honestly, I think is a good idea for every buyer regardless of the program.
TDHCA's My First Texas Home program. The Texas Department of Housing and Community Affairs offers a similar 30-year fixed-rate loan structure for first-time buyers and veterans, including a conventional loan option for buyers whose household income falls within local limits.
Mortgage Credit Certificates. This one is easy to overlook because it doesn't show up at closing. It's a federal tax credit, up to $2,000 a year, on the mortgage interest you're already paying. That's real money back in your pocket every single year you own the home.
Why I bring this up before you've even started looking
I believe clarity is the most powerful thing I can give a buyer. Fear and confusion kill more real estate plans than bad markets ever do, and "I don't think I can afford a down payment" is one of the most common fears I hear, often from people who absolutely could move forward with the right plan and the right program behind them.
None of these programs are guaranteed for every buyer. Income limits, purchase price limits, and credit requirements vary, and they're worth walking through with both a lender and me before you get your hopes up around a specific home. But too many people rule themselves out of homeownership before anyone's actually run their real numbers. I don't want that to be you.
Where this leaves you
If you're reading this and thinking "that could actually be me," I want you to reach out. We'll go through your specific numbers together, honestly, with real figures, not assumptions. That conversation is where every one of my clients starts, and it's exactly where I'd like to start with you too.
Sources:
National Association of REALTORS®, 2025 Profile of Home Buyers and Sellers (covering transactions July 2024 through June 2025)
Texas State Affordable Housing Corporation (TSAHC), Homes for Texas Heroes and Home Sweet Texas Home Loan Program guidelines, 2026
Texas Department of Housing and Community Affairs (TDHCA), My First Texas Home Program
U.S. Department of Housing and Urban Development (HUD), homebuyer education requirements
Down payment assistance programs have income, credit, and purchase price eligibility requirements that change periodically and vary by county. Confirm current eligibility with a participating lender before making financial decisions.