First-Time Homebuyers Reaching Record Age: New Report Reveals Rising Trends in Homeownership

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The dream of homeownership is becoming increasingly elusive for young adults, as a new report reveals that the average age of first-time homebuyers has reached a historic high of 40. This figure marks a significant increase from just two years ago, when the median age was 33, according to the National Association of Realtors.

Delving into the past, one can see how dramatically the landscape has changed. Back in 1981, the age at which most Americans bought their first home was just 29. However, today’s economic climate, characterized by escalating home prices and stagnant wages, has made it increasingly difficult for younger generations to step onto the property ladder.

Furthermore, first-time buyers now constitute a mere 21% of the housing market, a stark contrast to the pre-2008 era when they accounted for around 40%. This decline highlights the growing barriers faced by those trying to enter the market for the first time.

Jessica Lautz, the deputy chief economist and vice president of research at the National Association of Realtors, emphasized the profound impact of these changes. “The implications for the housing market are staggering,” she remarked. “The current generation of first-time buyers is likely to accumulate less housing wealth and experience fewer relocations over their lifetime.”

Lautz described the current scenario as “a tale of two cities,” where seasoned buyers with substantial equity are able to make hefty down payments and even all-cash offers, leaving first-time buyers at a disadvantage as they struggle to compete in this challenging market.

That divide appears to be fueling young people’s skepticism about the American dream: fewer than 4 in 10 adults under 30 believe it’s still attainable, compared with nearly 70% of those over 65, according to Pew Research.

Losing a decade of homeownership, buying at 40 instead of 30, can mean missing out on roughly $150,000 in equity on a typical starter home, NAR warned.

“We must focus on policies that address the root cause of the affordability crisis: inadequate housing supply,” said Shannon McGahn, NAR executive vice president and chief advocacy officer.

Other factors, like high rents and student loan debt, have also made saving for a down payment increasingly difficult, the report noted. The median down payment rose to 19% in 2025, the highest level in decades.

All-cash home purchases have also reached an all-time high, averaging 26% over the last year — a trend that underscores the strength of repeat buyers, who can leverage equity from a previous sale to bypass elevated mortgage rates.

Personal savings were the most common source of down payment funds among first-time buyers, with 59% relying on savings. More than 1 in 5, however, received help from relatives or friends through a gift or loan, according to the report.

Another sign of the times: The share of buyers with children under 18 has fallen to a historic low — just 24% of recent buyers, compared with 58% in 1985.

NAR’s latest profile of buyers and sellers report is based on survey data covering transactions between July 2024 and June 2025.