How the rate of first-time home buying has changed over time

For many, the American dream starts with buying a first home.

That milestone was achieved by just under half of all homebuyers last year: First-time homebuyers accounted for 44% of the home-buying population in 2021, according to census data. Sales reached record levels nationally and in certain major metro areas, including San Francisco, New York City, and San Jose, California, first-time homebuyers accounted for more than half of buyers that same year.

Texas Real Estate Source examined historical data from the Census Bureau's American Housing Survey to see how the share of first-time home buyers has changed in the last 10 years time. A sale is considered a first-time home purchase if neither the primary buyer nor any co-buyer has ever owned another home as a primary residence. In addition to exploring how the rate of first-time home buyers has evolved, the 25 cities with the highest share of first-time homebuyers have been listed (data also from the American Housing Survey).

Among the most important factors that first-time homebuyers consider is whether it makes more financial sense to rent or buy. Generally, this is determined by a calculation of monthly mortgage payments versus rental costs—although if a buyer intends to stay in a house for at least five years, the scales most commonly tip in favor of owning. In locations such as Detroit in 2021, rent came in far below the average mortgage; in San Francisco, however, renters came out on top despite a high volume of first-time buyers that year. 

Keep reading to see how the rate of first-time home buying has changed over time and which metros have the highest rate of these buyers.