Sky-High Housing Prices in the U.S.: What They Mean for First-Time Buyers and Where to Get Help

Imagine dreaming of your first home, only to find out that it's never been harder to afford.

In the four weeks ending June 15, 2025, the median home sale price hit $396,500, according to Redfin.

That’s the highest figure ever recorded, and even though it's just a 1% increase from the same period last year, it's enough to push homeownership further out of reach for many.

Why Homeownership Feels Like a Distant Dream

It’s not just rising prices. Soaring interest rates, a limited housing inventory, and the increased cost of living are hitting first-time buyers the hardest.

In 2024, just 24% of home purchases were made by first-time buyers, a huge drop from 50% back in 2010.

And perhaps most telling of all? The average age of first-time buyers is now 38, the highest on record, according to the National Association of Realtors (NAR).

What's Happening in the Market Right Now?

With fewer active buyers, the market is starting to shift. Sellers are adjusting, realizing that overpricing can leave homes sitting unsold.

But Here’s the Good News: Help Is Available

If you’re feeling shut out of the housing market, you’re not alone, and you're not without options.

Here are a few government programs and support services that can help:

1. Section 8 Housing Choice Vouchers – Offered through local Public Housing Agencies (PHAs), these vouchers help low-income families, seniors, and people with disabilities afford safe housing in the private market.
2. HUD’s First-Time Homebuyer Programs – The U.S. Department of Housing and Urban Development (HUD) partners with state and local agencies to offer down payment assistance and lower interest loans for first-time buyers.
3. USDA Rural Development Loans – If you're buying in a qualified rural area, you might qualify for zero-down loans through the U.S. Department of Agriculture.
4. State-Specific Housing Assistance – Many states offer homebuyer education, grants, and rent assistance programs. Visit hud.gov to explore resources in your area.

Bottom Line

The U.S. housing market may feel out of reach right now, but there are ways forward, especially if you’re armed with the right information and support.

Whether you're trying to rent affordably, buy your first home, or just stay afloat, tapping into government housing assistance programs could help you get closer to your goal.

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