The home-buying landscape in 2025 has evolved, especially for first-time buyers navigating an increasingly complex market. By analyzing search behaviors and emerging trends, we gain a clearer picture of how these buyers find and evaluate properties—insights that are essential for real estate professionals looking to connect with this audience.

The Digital Revolution in Home Searching

The home search process now begins online for nearly half of all buyers. A staggering 43% start their journey digitally, though 86% still turn to real estate agents for guidance and final decision-making. This digital-first approach has reshaped marketing strategies, making an optimized online presence more critical than ever.

Mobile search dominates, with 60% of property searches happening on smartphones and tablets. High-quality visuals are a top priority—41% of buyers say photography is the most important factor when browsing listings. Virtual tours have become a staple, with buyers typically viewing seven properties before purchasing—two of which are entirely online. For Gen Z, this trend is even more pronounced, with an average of 32 home tours, contributing to what’s now known as “home tour burnout.”

Interactive tools such as floor plans (valued by 31% of buyers) and comprehensive neighborhood guides, including school ratings and community insights, play a key role in decision-making.

Who’s Buying and What They’re Looking For

The first-time buyer profile is shifting. The median age has risen to 38, up from 35 in 2023, reflecting economic realities that demand higher incomes for homeownership. This older buyer demographic brings a fresh set of priorities, including a growing demand for multigenerational homes—17% of buyers now seek properties that can accommodate extended family.

Suburban migration remains strong, with 56% of first-time buyers opting for suburban areas over urban living (27%). Key location drivers include safety (59%), proximity to family and friends (45%), and affordability (36%).

How First-Time Buyers Are Financing Their Homes

Buyers in 2025 are demonstrating flexibility in financing. With rising home prices and interest rates, 73% are open to extended mortgage terms to keep monthly payments manageable. The preference for “move-in ready” homes is shifting—80% of buyers are now willing to purchase properties that need renovations, seeing them as opportunities to build equity.

Down payments continue to be a challenge. First-time buyers put down a median of 9%, compared to 18% for the broader market, underscoring the financial hurdles new buyers face.

The Role of Real Estate Agents in 2025

Despite the digital transformation of the search process, real estate agents remain central to home buying. Personal referrals now drive 40% of agent selections, and among first-time buyers, that number jumps to 51%.

Loyalty to agents is strong—88% of buyers say they would use their agent again or recommend them to others. Key reasons for choosing an agent include their ability to identify suitable properties (49%) and their negotiation skills (14%).

Regional and Generational Trends

First-time buyer activity is strongest in the Northeast and Midwest, while traditional retiree destinations like Florida see lower participation. Millennials make up 75% of first-time buyers, while Gen X represents 54% of this group.

Remote work continues to shape buying decisions, with 65% of buyers citing it as a major factor in their home search.

How Real Estate Professionals Can Adapt

To successfully serve first-time buyers in 2025, industry professionals should:

• Prioritize mobile-friendly listings with high-quality visuals
• Strengthen expertise in suburban markets
• Build networks of financing and renovation resources to assist buyers
• Focus on client relationships and referral-based growth

The first-time homebuyer market is evolving, shaped by technology, shifting demographics, and economic trends. Real estate professionals who stay ahead of these changes—leveraging digital tools, understanding buyer behavior, and providing exceptional service—will be best positioned to succeed.