What's Really Keeping First-Time Buyers Out of the Market

By Monique Walker

Monique Walker has 21 years of experience successfully buying and selling homes in the Phoenix market. She knows the neighborhoods, schools, and the local economy. Monique and her team do all the leg work, keeping you up-to-date with new listings and conditions as they impact the market.

Most families plan to pass their wealth on someday. But very few stop to ask, what if that wealth could change a life right now?

Right now, somewhere between $80 and $82 trillion is poised to be passed on as inheritance or charitable donations. That’s the great wealth transfer that’s happening across the country. And at the same time, there’s a massive group of first-time buyers, millennials and Gen Z, who are stuck on the sidelines waiting for improved affordability, lower mortgage rates, and more inventory to enter the market.

That backlog has driven the share of first-time home buyers to a record low of 21% in 2025. That’s the lowest it’s been since the National Association of Realtors started tracking it. And the reasons behind it are real.

Education debt. Lack of a down payment. Credit challenges. Job insecurity. Fear from watching past housing market failures play out in the news. Indecision or poor financial guidance. A lack of awareness about the loan programs that actually exist for first-time buyers. And unfortunately, sometimes negative press about homeownership discourages people from even trying.

There’s also, and I’ll be honest about this, a gap in effort from some Realtors when it comes to educating first-time buyers about what’s available to them. That’s something our industry needs to do better.

But here’s where it gets interesting for families. Homeowners on average acquire 42 times the net worth of a renter. That’s not a small number. That’s a generational difference in wealth building. And parents and grandparents who have the ability to help have an opportunity right now to make a real impact with a relatively small gift.

A husband and wife can gift a total of $38,000 tax-free to the person of their choice, whether that’s a child, a child’s spouse, or even a friend. And with the loan programs now available for first-time home buyers, that amount is more than enough to compile a down payment on a target first-time purchase. You don’t have to buy the home for them. You just have to give them the push that gets them through the door.

And here’s what makes this different from just putting someone in your will. Too often, parents and grandparents plan to pass their wealth on after death and never get to see the results of a lifetime of work and wealth accumulation. That’s the part that’s sad to me. The joy of watching a first-time buyer move into their new home, watching your child or grandchild take that step, is something you can experience right now. Not someday. Now.

For families with the ability to help, this moment represents something bigger than a transaction. It’s a chance to create stability, pride, and momentum for the next generation while you’re here to experience it. If you’ve ever wondered, “Could we help? Should we?” that conversation is worth having.

I’m happy to walk you through the options and help your family make an informed, confident decision. Call me at (602) 413-8195, email me at Monique@MoniqueSells.com, or visit moniquesells.com. I would love to help. I can’t wait to hear from you.