FORT WASHINGTON, PA — First-time homebuyers accounted for 49% of Newrez’s purchase mortgages in 2025 despite persistent affordability pressures, reflecting continued demand for homeownership even as buyers face higher home prices and incomes than four years ago.
The mortgage lender said its analysis of loans originated between 2022 and 2025 found first-time buyers remained a substantial share of its business, though their share declined from 56% in 2022.
The findings come as Newrez-commissioned survey data showed 81% of U.S. adults still consider homeownership part of the American Dream, highlighting enduring consumer demand despite elevated borrowing costs and housing prices.
First-time buyers financed homes with a median purchase price of $345,741 in 2025, a 10% increase from 2022. Their median qualifying income rose to $77,208 from $61,728 over the same period, while the median age held steady at 33.
Those borrowers continued to rely on relatively small down payments, with a median down payment of 4.85% of the purchase price, according to the company’s analysis.
Repeat buyers represented just over half of Newrez’s purchase originations in 2025 and purchased more expensive homes than first-time buyers.
The median purchase price for repeat buyers increased 11% to $482,000 from $432,620 in 2022, while median qualifying income climbed 26% to $110,139. Their median age increased to 44 from 42, and the median down payment edged down to 14.82% from 15%.
“While affordability remains a challenge, these buyers are finding practical ways to enter the market and achieve homeownership,” Bob Johnson, Newrez’s head of originations, said in a statement.
The company defined first-time homebuyers using Federal Housing Finance Agency guidelines, which classify borrowers purchasing a primary residence who have not held an ownership interest in residential property during the previous three years.
The survey measuring attitudes toward homeownership was conducted online by Morning Consult on behalf of Newrez from June 12-14 among 2,203 U.S. adults. The reported margin of error was plus or minus two percentage points.
Full methodology and findings are available at: https://www.newrez.com/blog/industry-insights/homeownership-on-america-250.
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