The Great Divide: Why First Time Buyers Feel Shut Out of Today’s Housing Market

If it feels like first time buyers today are older than ever, you are seeing a real shift in the Metro Detroit real estate market. According to the 2025 Profile of Home Buyers and Sellers from the National Association of REALTORS, the median age of first time buyers has reached 40. That is the highest on record and a significant jump from the late twenties seen in the 1980s.

As a Top Real Estate Agent in Northville, and a trusted guide for families in Novi, South Lyon, and Plymouth, I hear from many first time buyers who feel overwhelmed by the current landscape. You are not alone. The path to ownership has changed, and it is important to understand what is driving it.

Why First Time Buyers Are Struggling More Than Ever

First time buyers accounted for just 21 percent of all purchases this year. Historically, that number has been closer to 40 percent. Buyers who are entering the market for the very first time are facing higher payments, limited inventory, and rising prices.

As a Metro Detroit Senior Real Estate Specialist and Metro Detroit Divorce Real Estate Specialist, I regularly work with individuals navigating major life transitions, many of whom expected to own a home sooner. The delays are real and widespread.

The Growing Divide Between First Timers and Repeat Buyers

Repeat buyers, who typically have decades of equity and more financial stability, continue to dominate the market. Consider these recent findings:

• The median age of repeat buyers is now 62

• Nearly one-third of repeat buyers pay cash

• Repeat buyers put down a median of 23 percent

• First timers averaged 10 percent, the highest since 1989

As a Top Real Estate Agent in Novi and South Lyon, I see how this advantage shapes competitive offer situations daily. Cash buyers and equity rich buyers can move faster and more confidently.

Affordability Remains the Biggest Hurdle

Affordability is the primary challenge for first time buyers in Northville, Novi, and South Lyon. Several factors are working against new buyers:

• Mortgage rates averaged 6.69 percent during the study period

• Fewer affordable entry level homes are hitting the market

• Rent continues to rise, making it hard to save

• More buyers are pulling from retirement funds to make the leap into ownership

Many of today’s successful first time buyers relied on personal savings, gifts from family, or financial assets to cover their down payment and closing costs.

Why Repeat Buyers Have a Stronger Advantage

Repeat buyers have built equity for more than a decade, selling after a record eleven year ownership period. That equity gives them meaningful flexibility when making their next move. Some purchase their new home with little or no financing.

Their experience also helps them understand value quickly, act decisively, and navigate multiple offer environments. This is something I support daily as a Top Real Estate Agent in Northville and Novi, where buyers must remain nimble.

How First Time Buyers Can Still Win in 2025

There is still a clear path to homeownership for those who prepare early and take a strategic approach. If you are planning to buy in the next one to two years, here are several smart steps to consider:

• Look into statewide and local down payment assistance

• Talk to lenders about creative financing, including temporary rate reductions

• Explore new construction communities offering incentives

• Consider multi generational living to ease costs

• Work with an experienced local agent who knows how to structure competitive offers

Whether you are buying in Northville, Novi, South Lyon, or Plymouth, I can help you navigate programs, incentives, and strategies that open the door to homeownership.

The Bottom Line

The landscape may look different today, but homeownership is still absolutely possible. Many first time buyers are older, but they are also more prepared and more intentional. With the right guidance, you can move through the process confidently and make decisions that support your long term future.

If you are thinking about buying soon, now is the perfect time to start the conversation. Together, we can map out a plan that supports your goals and guides you from exploring possibilities to unlocking the door of your new home.

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Jeff Duneske, Northville Realtor – Keller Williams Advantage
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