The number of first-time homebuyers in the United States has reached a 20-year low, with only 1.14 million entering the market in 2024, nearly half the long-term average of 2.1 million annually between 2004 and 2024. This decline is attributed to high home prices, elevated mortgage rates, and limited housing supply. Concurrently, the number of American households renting has hit a record high of 46 million. The average age of first-time buyers has increased to 38 years, while the overall average homebuyer age is now 56, up from 49 in 2023. The reluctance of senior homeowners to downsize, with up to 40% owning homes outright without mortgages, is further constraining supply and exacerbating affordability issues for younger buyers. Experts note that existing homeowners have accumulated substantial housing wealth and face low delinquency rates, but first-time buyers continue to struggle to enter the market. Despite slow home sales in 2025, recent increases in mortgage applications suggest some renewed interest in homeownership. The ongoing challenges for first-time buyers are seen as detrimental to the broader U.S. economy and reflect long-standing policy issues, including unchanged capital gains tax rules that disincentivize downsizing among older homeowners.