The number of first-time homebuyers in the United States has reached a 20-year low in 2024, with only 1.14 million entering the market, nearly half the long-term average of 2.1 million annually between 2004 and 2024. This decline is attributed to persistently high home prices, elevated mortgage rates, and low housing supply. Despite an increase in mortgage applications signaling some buyer interest, many prospective buyers, particularly from younger generations such as Gen Z and millennials, are struggling to afford homeownership. Concurrently, rental markets are expanding, with a record 46 million American households renting. Existing homeowners remain financially stable, having accumulated substantial housing wealth and maintaining low delinquency rates. However, housing inventories are rising in certain markets, leading to falling home prices nationwide, though the overall supply remains insufficient to meet demand. Surveys indicate that one in five recent homebuyers regrets taking on high mortgage rates. Experts note a complex market dynamic where affordability challenges persist amid shifting inventory levels and buyer behavior.