Why First-Time Buyers Still Matter (and How to Think About Them in 2026)

The elusive first-time homebuyer. This once-predictable segment has evolved in today’s housing market, and the rules for serving this group have changed with it.

First-time buyers (FTBs) now make up only 21% of buyers, the lowest ever recorded.[1] And the average first-time buyer is now 40 years old, a dramatic departure from the typical late-20s buyer of the past.[1] These shifts reflect long-standing constraints around diminished affordability, growing debt, limited savings, and rising home prices.

So … are first-time buyers still worth pursuing?

Yes! But today’s FTBs require a different playbook than what worked even five years ago.

Here’s what makes today’s FTBs such a powerful growth opportunity:

FTBs aren’t locked into low mortgage rates. While many current owners won’t budge, renters face the unpredictability of rising rental costs. You can offer stability and a path forward.

FTBs often overestimate the barriers to homeownership. One study found that 60% of U.S. adults overestimate the amount required for a down payment, and more than a quarter believe they need to put 20% down.[2] You can show them what it really takes to buy a home.

Homes are becoming more affordable. Recent improvements in the income-to-home-price ratio may open the door to more buyers.[3] Interest rates have eased from last year’s levels, too, making monthly mortgage payments easier to manage.[4] You can guide buyers to homes in their price range.

One FTB can lead to many more. More than half of FTBs find their agent through a referral.[5] When you deliver a great experience, these clients can become your advocates, connecting you to peers, co-workers, and friends who are navigating similar milestones. You can build your pipeline by delivering excellence, time and again.

Today’s first-time buyers require a new playbook. Their journey to homeownership is slower, and their expectations may be higher. In the next two issues of Spark, we’ll explore where to find them and how to convert them once they’re ready to act.

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Sources:

1. National Association of Realtors, “First-Time Home Buyer Share Falls to Historic Low of 21%, Median Age Rises to 40,” November 4, 2025.

2. NeighborWorks America, “Debunking the down payment myth,” June 30, 2025.

3. ICE Mortgage Monitor, February 2026.

4. Freddie Mac, Primary Mortgage Market Survey.

5. Realtor.com, “How to build a brand that attracts referrals without asking,” February 17, 2025.