Trends Shaping the First Time Homebuyer Market

At a Glance:

• 14% of current renters plan to buy a home in 2026, down from 17% in 2025.¹
• 65% of home shoppers expect their first purchase to be their long‑term or “forever” home.²
• The median down payment for first‑time buyers reached 10% in 2025, the highest level in more than three decades.³
• The median age of first‑time buyers rose to 40 in 2025, the highest on record.⁴

As Spring 2026 unfolds, first time homebuyers are navigating a dynamic and evolving real estate landscape marked by both opportunity and challenge. Mortgage rates are lower than they were one year ago,⁵ unsold housing inventory has increased by 5.8% since March 2026,⁶ and housing affordability improved across all regions in April.⁷ Even so, many first time buyers continue to face obstacles, particularly when it comes to accumulating a down payment and qualifying for financing.

In this edition of Ameris Bank’s Mortgage Monitor, we explore how first time homebuyers are responding to current market conditions and the trends shaping their approach this spring.

Fewer Renters Plan to Become Homeowners in 2026.

Homeownership remains an important goal for many Americans, with approximately 74% saying it is a key life objective.⁸ However, only 14% of renters report plans to purchase a home in 2026.⁹ This marks a decline from the 17% of renters who indicated similar intentions for 2025.¹⁰

“Affordability remains a primary challenge for many prospective first time homebuyers,” said Brett Hively, Senior Vice President, Mortgage Capital Markets and Financial Strategist at Ameris Bank. “Modest income growth, lower savings levels, and the need to balance a down payment with ongoing monthly housing costs continue to make the transition from renting to owning more difficult.”

More Individuals and Families Are Seeking a 'Forever Home.'

Among buyers who are entering the market, expectations around their first purchase are changing. An April 2026 survey found that 65% of home shoppers expect their first home purchase to also be their long term or “forever” home.¹¹

“This trend reflects a shift in mindset among first time buyers,” Hively said. “Rather than viewing their first purchase as a temporary step, many buyers are looking for a home that can support their needs over a longer period of time, including changes in family size and career stages.”

First-Time Homebuyers: By The Numbers

Recent housing data shows that first time buyers are purchasing homes later in life and bringing more money to the table. In 2025, the median age of first time homebuyers reached 40, the highest level ever recorded for this group.¹² By comparison, the median age of first time buyers was 28 in the late 1980s and early 1990s.¹³

Down payments have also increased. The median down payment for first time buyers was 10% in 2025, matching the highest level recorded since 1989.¹⁴ When funding their down payments, 59% of first time buyers used personal savings, 26% relied on financial assets such as stocks or cryptocurrency, and 22% received gifts or loans from family or friends.¹⁵

The Role of Real Estate Agents and Lenders Remains Essential

Navigating the homebuying process can be complex, particularly for first time buyers. Real estate agents and lenders continue to play a critical role in helping buyers understand financing options, timelines, and transaction requirements.

“Strong coordination between real estate agents and lenders helps create a smoother experience for first time buyers,” Hively said. “At Ameris Bank, our loan officers work closely with realtors to keep them informed on loan status and timing, which helps manage expectations throughout the process.”

Hively also emphasized the importance of ongoing lender support. “Lenders that provide consistent guidance and market insight can help real estate professionals better serve their clients, especially in a changing market environment.”


^{1, 2, 4, 9, 10, 11, 12, 13} https://www.realtor.com/news/trends/first-time-homebuyers-skipping-starter-homes-forever-homes/
³ https://www.nar.realtor/magazine/real-estate-news/nar-2025-profile-of-home-buyers-sellers-reveals-market-extremes
⁵ https://www2.optimalblue.com/obmmi
^{6, 7} https://www.nar.realtor/newsroom/nar-existing-home-sales-report-shows-0-2-increase-in-april
⁸ https://www.morningstar.com/news/pr-newswire/20260422to40614/housing-market-shifts-as-homebuyers-upsize-to-forever-homes-bmo-real-financial-progress-index
^{14, 15} https://www.nar.realtor/newsroom/first-time-home-buyer-share-falls-to-historic-low-of-21-median-age-rises-to-40

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Ameris Bank does not endorse nor is affiliated with the companies listed in this article.