The Changing Face of Homeownership: Who’s Buying in 2025?

The profile of today’s homebuyers looks very different than it did just a few decades ago. Buyers are older, more likely to be single, and increasingly female. These shifts are reshaping the housing market, from the types of homes being built to how real estate professionals approach buyers' needs.

Who’s Buying Homes?

In 1973, 73% of homebuyers were married couples, while single women accounted for just 11% and single men made up 10%. Fast forward to 2024, and married couples' share of the market has dropped to 62%, while single women now represent 20% of homebuyers, according to the National Association of Realtors' (NAR) 2024 Profile of Home Buyers and Sellers.

This trend reflects broader societal changes. With higher education levels and greater financial independence, more women are delaying marriage and choosing to invest in homeownership on their own. The real estate market is adjusting in response, with a growing demand for smaller homes in safe neighborhoods with easy access to amenities.

Another shift is the increasing age of homebuyers. In 2024, the median age of all homebuyers reached 56, a sharp increase from 49 in 2023. The median age of repeat homebuyers is now 61, while first-time buyers are purchasing later in life, with their median age rising to 38 from 35 in 2023.

At the same time, first-time homebuyers made up just 24% of total sales in 2024, the lowest percentage since NAR began tracking the data in 1981. Before the Great Recession, they consistently accounted for around 40% of all buyers.

What Today’s Homebuyers Look for in a Home

According to the NAR report, today’s homebuyers prioritize:

• Neighborhood quality (59%) as the most important factor.

• Proximity to friends and family (45%), reflecting a shift toward staying connected with personal networks.

• Affordability (36%), as rising home prices challenge buyers.

Other key findings:

• 85% of buyers purchased a previously-owned home, while 15% bought new construction.

• Detached single-family homes remain the top choice, accounting for 75% of purchases, followed by townhouses at 7%.

• The median distance between a buyer’s new home and their previous residence was 20 miles, a decrease from 50 miles in 2022 but still higher than the 15-mile average from 2018 to 2021.

The Affordability Challenge

As the profile of homebuyers shifts, so do their financial concerns. Millennials, in particular, are losing confidence in their ability to afford a home. A recent Clever Real Estate survey found that only 21% of millennials believe homeownership is financially feasible for their generation—down from 52% in early 2024.

Affordability concerns are widespread, with 96% of millennials citing worries about buying a home, and 44% specifically concerned about finding one within their budget—a sharp rise from 35% in 2024.

The price of a starter home has skyrocketed in recent years. In 2012, the typical starter home sold for $95,000. By 2019, that price had jumped to $165,500, and in 2024, it hit $250,000, according to Redfin.

Meanwhile, although the typical household earns 8.9% more than necessary to afford the median-priced starter home, that number was 57% in 2019 and 113% in 2012. This means homeownership is now far less accessible than it was just a decade ago (Redfin).

Why Homeowners Are Staying Put

For many, selling a home doesn't make financial sense in today's market. A Redfin survey found that 43% of baby boomers say they will never sell their home, citing reasons like having paid off their mortgage or simply being happy where they are.

Overall, home sales turnover is at historic lows. In the first eight months of 2024, just 25 out of every 1,000 homes changed hands—the lowest level in decades, per Redfin. With home prices up 40% since the start of the pandemic and mortgage rates significantly higher than in 2019, many homeowners are choosing to stay put unless they have no other option.

The housing market is constantly evolving, and these demographic shifts—ranging from older, single homebuyers to millennials struggling with affordability—are shaping the real estate landscape in 2025 and beyond.