The Next Generation of Homebuyers Is Here—and They’re Making a Statement

First-time homebuyers made up 58% of agency purchase loans in Q1 2025, according to ICE Mortgage Technology. That kind of momentum—driven largely by Gen Z and Millennials—is reshaping the housing market and confirming what we’ve already seen across our BankSouth Mortgage communities: a new wave of buyers is ready, motivated, and looking for the right guidance.

Why This Shift Matters

At BankSouth Mortgage, we’ve been tracking this evolution closely. Over the past year, we’ve seen a clear increase in activity from younger buyers—often tech-savvy, research-driven, and motivated by a mix of rising rents, life changes, and a desire to plant roots.

But this latest data confirms that this isn’t just anecdotal. It’s systemic.

These buyers are:

• Taking advantage of down payment assistance programs
• Exploring adjustable-rate and first-time buyer loan options
• Getting pre-approved earlier in the process
• Partnering with lenders who offer clear, responsive guidance

Gen Z and Millennial Buyers Are Ready—But They Still Have Questions

Even though these buyers are entering the market in growing numbers, the process can feel overwhelming.

They want to know:

• “Can I really buy a home without a 20% down payment?”
• “How do I compete with cash offers?”
• “Is now a smart time to buy—or should I wait?”

The good news? They don’t have to figure it out alone.

At BankSouth Mortgage, we specialize in making complex steps feel clear, personal, and doable—especially for those buying their first home.

Want to see how this trend started? Check out our original breakdown of Gen Z and Millennial homebuyers from 2023—and how their influence has only grown since.

What First-Time Buyers Can Do Right Now

If you’re a first-time buyer (or guiding one), here are a few simple steps to take today:

1. Start with ReadyApprove™. Our pre-approval process gives you clarity—and negotiating power. Learn how ReadyApprove™ works.
2. Use ReadyLoan® to explore your options. Our digital mortgage platform makes it simple to compare programs, connect with a loan officer, and move forward with confidence. Start with ReadyLoan® here.
3. Ask questions. The right lending partner will never make you feel rushed or unsure—and we’re here to help every step of the way.

FAQ – First-Time Buyer Trends in 2025

Q: How many homebuyers in 2025 are first-time buyers?
A: According to ICE Mortgage Technology, 58% of agency purchase loans in Q1 2025 were made to first-time homebuyers.

Q: Are Millennials and Gen Z really buying homes right now?
A: Yes—many are taking advantage of softening competition and seeking long-term financial stability.

Q: What loan options are best for first-time buyers?
A: Conventional loans with 3% down, FHA loans, and even USDA or VA options (if eligible) are all worth exploring.

Q: Can I apply online or from my phone?
A: Yes—and it’s easier than you think. ReadyLoan® is our simple, secure digital platform that lets you apply online or through our mobile app. You can track your loan progress in real time, securely submit and sign documents, and access everything you need in one place. It’s a personal connection with an expert—wrapped in the convenience of a digital experience.

The Bottom Line

The numbers speak for themselves: this is a real movement. And for those ready to take the leap, the right guidance makes all the difference.

At BankSouth Mortgage, we’re proud to serve the buyers shaping the future of homeownership—with clarity, care, and confidence.