Raleigh renters Lillian Rouse, 28, and Mark Debney, 29, halted their house hunt after a year of searching, citing a combined $120,000 income that falls short of current price tags. Their decision mirrors a broader retreat among newcomers who are waiting for a sturdier financial base before committing to a mortgage.

National Association of Realtors data shows first‑time buyers now represent just 21% of transactions, a record low, while the median age of entrants has risen to 40. The slowdown follows the Iran war’s impact on rates and confidence, pushing the average 30‑year fixed rate to 6.37%, according to Freddie Mac. Economists warn that prolonged Middle‑East conflict could keep energy costs high, further dampening demand.

Beyond higher rates, prospective owners face rising property taxes, insurance premiums and HOA fees that add hundreds to monthly outlays. Analysts at Homes.com note that newer home values lift tax bills, while natural‑disaster‑driven insurance spikes erode affordability. Younger buyers, many burdened by student loans, are opting to stay in rentals or move back with parents to save for down payments.

Builders such as Howard Hughes Holdings report pressure from buyers demanding more entry‑level homes that match lifestyle aspirations. The firm is urging developers to increase starter‑home inventory, a move that could ease the supply squeeze if executed soon. Until then, the market will likely see continued postponement of first purchases.