First-time buyers now make up 21% of the US housing market, far below the historical norm near 40%, creating a key entry-level gap.
Repeat buyers in 2026 often bring $200K to $500K in equity, helping them manage payments despite rates they dislike more easily than newcomers.
For first-time buyers, qualifying income for a median-priced home has ~doubled since 2020, while wages and down payments have not kept pace.
Because starter-home purchases unlock move-up transactions, one missing entry-level buyer can remove three or four linked deals from the market above them.
Agents can adapt by solving financing puzzles: assistance options, lender coordination, buydowns, builder incentives, family gifts, and move-up plans before listing homes.
