One of the most distinct signals of change in the global housing market is the growing presence of people buying their first home. The latest international analyses show that first-home buyers have reached their largest market share in the last two decades. This is a turning point that not only changes the profile of demand, but also has an impact on price levels and supply in a number of countries.
The trend is observed simultaneously in several developed markets - the UK, parts of Europe and North America. Traditionally, this segment is among the most sensitive to the economic environment, interest rates and availability of credit. That is why its increased share is taken as an indicator of regaining confidence and the gradual normalization of home buying conditions.
Why first-time home buyers are key to the market
People who make their first purchase are the "engine" of the housing sector. Their entry into the market creates new demand and triggers subsequent transactions - sales of larger properties, moving to a higher price class and moving the middle segment. When their share decreases, the market usually cools down. When it increases, it is a signal of structural stability and long-term interest in ownership.
What factors are behind the growth
The increased share of first-time home buyers is explained by several key assumptions:
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Accumulated savings in previous years, which allow for a higher mortgage down payment.
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A relative stabilization of interest rates, after a period of high inflation and sharp increases in credit costs.
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A change in the way people work, including remote and hybrid models that allow greater freedom in choosing where to live.
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Government incentives and programs in some countries aimed at young families and first-time buyers.
Effect on housing prices
The increased presence of this segment is felt most strongly in smaller and medium-sized apartments - the typical choice for a first home. In cities with limited new construction, this can lead to increased price pressure, especially in neighborhoods with good infrastructure and transport accessibility.
However, in areas with a wider supply, the market manages to absorb the increased demand without sharp price spikes. It is the balance between existing properties and new construction that is proving to be a decisive factor in the dynamics of values.
The role of mortgage lending
Access to finance remains a key element. Although interest rates in a number of countries are now below their peak values of 2023-2024, they are still above historical lows. This means that for many households, buying a first home continues to require careful financial planning. That is why a number of governments support schemes for guarantees, subsidized loans or tax breaks aimed specifically at this segment.
What does this mean for the market going forward
Experts expect the share of first-time home buyers to remain high next year, provided the economic environment remains relatively stable. For construction companies, this is a signal to focus on more affordable projects, and for investors - an indicator of sustainable underlying demand.
Ultimately, the increased presence of people buying their first home is not just a statistic. It shows a broadening of the housing market base, which usually brings greater stability and more predictable dynamics in the long term.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be seen at imot.bg