What’s Ahead for Homebuying in 2025? Why Employers Should Pay Attention

To understand where the housing market is headed in 2025, it's important to look at where we've been—and for many first-time buyers, 2024 was a year spent sitting on the homebuying sidelines.

According to the National Association of Realtors (NAR), existing home sales in 2024 dropped to 4.06 million—the lowest level in nearly three decades, dating back to 1995. The factors behind this slump paint a clear picture of just how challenging it became to buy a home, especially for younger, first-time buyers.

What Held Buyers Back in 2024?

• High Mortgage Rates
  Elevated interest rates drove up the cost of borrowing, shrinking affordability for many aspiring homeowners.

• Record-High Home Prices
  Home prices soared to new highs, pushing the dream of homeownership further out of reach for middle-income earners.

• Severely Limited Inventory
  A shortage of available homes left buyers with fewer options and fierce competition, especially in affordable price ranges.

First-Time Buyers Were Hit the Hardest

In one of the most telling statistics of the year, only 24% of home purchases in 2024 were made by first-time buyers—the lowest share since NAR began collecting this data in 1981. That’s down from 32% just the year before.

These buyers also skewed older than ever, with the median age of a first-time buyer rising to 38. In many ways, this reflects a growing reality: it now takes more time, higher income, and often outside financial support from friends and family to break into the housing market.

““The U.S. housing market is split into two groups: first-time buyers struggling to enter the market and current homeowners buying with cash,” said Jessica Lautz, NAR deputy chief economist.”

What Comes Next?

Despite the headwinds of 2024, there’s pent-up demand heading into 2025. According to a recent homebuyer outlook report, 15% of Americans say they plan to buy a home in the next year, a hopeful sign of momentum returning. However, these buyers anticipate spending around $259,000 on average—well below the national median sales price, highlighting that affordability challenges persist.

A Call to Employers: Be Part of the Solution

Today’s young professionals still want to own homes—but they need support to get there. That’s where employer groups can make a meaningful difference. Offering a homeownership assistance benefit isn’t just a perk—it’s a powerful recruiting and retention tool. In a competitive talent market, helping employees overcome barriers to homeownership can set your organization apart.