Home prices have risen 53% since 2019, while median household income has risen only 24%—which is why the share of first-time home buyers in the market fell to 21% in 2025. That's down from 44% in 1981, according to the National Association of Home Builders (Washington, D.C.). Over that same time frame, the median age for first-time buyers reached a record high of 40 in 2025, compared to 29 in 1981.
“You can’t have housing prices rise that significantly for a sustained period of time and not experience housing affordability issues,” said Rose Quint, NAHB assistant vice president of survey research. “Clearly this will have implications on the size of homes we build and the types of amenities we include.”
Median home size leveled off at 2,155 square feet in 2025, essentially unchanged from 2,150 in 2024. Although size is not expected to change significantly in 2026, builders do expect to incorporate more transition or flex spaces—such as drop zones and multipurpose rooms. Builders are also trying to address affordability concerns by offering sales incentives (67%) and cutting home prices (41%), a trend that continues to grow compared to efforts in 2024.
Additionally, high-end buyers in 2026 likely will prefer more bedrooms, bathrooms and home offices, according to NAHB research—as well as soundproof floors and walls.
Other milestones that impact housing trends are shifting, too, with more than half of young adults ages 18 to 24 living with their parents, fertility rates and the percentage of married couples with children decreasing, and more people opting to live alone.
