First-time Home Buying Drops to All-Time Low

Younger generations struggle with affordability and limited inventory, while Baby Boomers dominate the seller's market.

Apr. 15, 2026 at 3:53pm

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A vibrant abstract illustration composed of overlapping triangles and rectangles in shades of blue, red, and yellow, conceptually representing the declining trend in first-time home buying.As affordability challenges and limited inventory continue to price out younger generations, the share of first-time home buyers has dropped to historic lows.Washington Today

According to a new report from the National Association of Realtors, the percentage of first-time home buyers dropped to just 21% in 2026, the lowest level since 1981. Younger generations like Millennials and Gen Z accounted for a shrinking share of new buyers, while Baby Boomers remained the largest group of sellers, often moving to downsize or retire.

Why it matters

The decline in first-time home buyers reflects the ongoing affordability challenges facing younger generations, who are grappling with high prices, limited inventory, and economic uncertainty. As Baby Boomers continue to dominate the seller's market, it creates an imbalance that makes it even harder for younger buyers to break into homeownership, a key milestone for building wealth.

The details

The report found that the percentage of first-time home buyers dropped from 24% in the previous survey to just 21% in 2026. Younger Millennials saw the biggest decline, accounting for 60% of first-time buyers compared to 71% the year prior. Older Millennials, who had the highest median income at $132,700, bought the largest homes with a median of 2,100 square feet. Meanwhile, the share of multigenerational home purchases declined across all generations, though Millennials still led in this category.

  • The National Association of Realtors' 2026 Home Buyers and Sellers Generational Trends report surveyed recent home buyers who purchased a primary residence between July 2024 and July 2025.
  • The survey was sent to 17,250 home buyers in July 2025 and received 6,103 responses.

The players

National Association of Realtors

The trade association representing real estate professionals in the United States, which conducts research and analysis on the housing market.

Lawrence Yun

Chief economist at the National Association of Realtors.

Jessica Lautz

Deputy chief economist at the National Association of Realtors.

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What they’re saying

“The housing market remains sharply divided between homeowners with equity and first-time buyers trying to break in—many of them younger Millennials. For many younger households, affordability challenges and limited inventory are still making difficult to achieve.”

— Lawrence Yun, Chief economist

“Older Millennial buyers are now entering middle age and with that comes a shift. This cohort is not the highest-earning generation of home buyers, buys the largest homes and and is most likely to have children living with them. Those traits were once more commonly associated with Gen X buyers, who are now increasingly looking toward empty-nesting and retirement.”

— Jessica Lautz, Deputy chief economist

“What stands out about Gen Z is how confidently they're beginning to define homeownership for themselves. They may still be a small share of the market, but they're already challenging old assumptions about who buys a home and when.”

— Jessica Lautz, Deputy chief economist

What’s next

The National Association of Realtors plans to continue monitoring trends in first-time home buying and generational shifts in the housing market through its annual survey.

The takeaway

The decline in first-time home buyers reflects the ongoing affordability challenges facing younger generations, who are being priced out of the market as Baby Boomers dominate the seller's side. This imbalance threatens to widen the wealth gap and make it even harder for Millennials and Gen Z to achieve the American dream of homeownership.