Despite the increasing cost of buying a house, first-time homebuyers still accounted for nearly half of Newrez home loans in 2025, according to data collected by the mortgage lender.

Newrez reported that 49% of the company’s purchase loans last year were for first-time homebuyers. While the figure was on the decline from just three years earlier, when first-time buyers made up 56% of purchase loans, it still showed that first-time buyers are finding ways to afford that starter home.

“As the country marks its 250th anniversary, homeownership remains a key part of the American Dream, but the journey looks different for today’s buyers,” said Bob Johnson, Newrez’s head of originations. According to a separate survey commissioned by the Pennsylvania-based lender-servicer, 81% of U.S. adults say owning a home is still part of the American Dream.

Newrez found that while the percentage of home loans going to first-time buyers has fallen seven percentage points since 2022, the median age of first-time buyers has remained the same at 33. That stands in contrast to data published last year by the National Association of Realtors, which controversially reported that the typical first-time homebuyer age rose to 40 in 2025.

Median downpayments dropped slightly last year, according to Newrez, falling from 5% in 2022-24 to 4.85% in 2025. Home purchase prices have increased 10% during that period, with the median purchase price rising from $314,000 in 2022 to $345,741 last year. At the same time, the median income for first-time buyers was up 25%, from $61,728 in 2022 to $77,208 in 2025.

During the four-year period studied in the report, repeat buyers accounted for a growing percentage of home loans, rising from 44% in 2022 to 51% in 2025. The median age of repeat buyers has climbed from 42 in 2022 to 44 in 2025, the study found, while the median downpayment for repeat buyers held steady at 15% from 2022 to 2024 but fell slightly last year to 14.8%.

The purchase price for repeat buyers increased 11% in the past four years, Newrez reported, from $432,620 in 2022 to $482,000 in 2025. The biggest difference was the income of repeat buyers, which rose 26% in the past four years, from $87,526 in 2022 to $110,139 in 2025.

Another change has been the falling inflation level during the period covered by the report. The inflation rate between 2021 and 2022 was 8%, but it has since fallen precipitously to 4.1% in 2023, 2.9% in 2024 and 2.6% in 2025.

Newrez offered some tips for buyers planning to purchase a home in 2026, including focusing on the cost of the full monthly payment and not just the purchase price. New homebuyers should also consider that taxes, insurance, interest rates and other homeownership costs can have a major impact on overall home expenses.

The lender also advised homeowners to develop a downpayment strategy, including researching downpayment assistance programs. A higher downpayment will lower the mortgage, but buyers should also keep cash reserves for unexpected expenses, Newrez recommended.