The typical first-time homebuyer in the United States is now 40 years old, the oldest age on record, according to new data from the National Association of Realtors. The milestone underscores how rising housing costs and tight supply continue to push homeownership further out of reach for younger Americans.
The findings show first-time buyers accounted for just 21% of home purchases between July 2024 and June 2025, the lowest share recorded since the group began tracking the data in 1981. Analysts say a combination of high home prices, mortgage rates hovering near 6%, and a shortage of affordable properties has fundamentally reshaped who can enter the housing market.
For many would-be buyers, delaying a purchase has become the only viable option. Some are pooling resources with friends to co-buy homes, while others are moving farther from job centers in search of lower prices. Even with those strategies, many still rely on family assistance to make a purchase possible.
Research from BMO found that 60% of Gen Z buyers and 57% of millennials said they could not have bought a home without financial help from relatives, often in the form of down payment assistance or gifts. That reliance reflects how far savings and wages have fallen behind the cost of entry-level homes.
The aging of first-time buyers stands in contrast to the growing advantage held by repeat purchasers. According to the Realtors’ report, the median age of repeat buyers has climbed to 62, also a record high. Many of those buyers have accumulated substantial equity, allowing them to make large down payments or bypass financing altogether.
All-cash purchases reached a new high as well. A record 26% of homebuyers paid entirely in cash, up from 20% the year before. That trend further tilts the market toward wealthier and older buyers, especially in competitive regions where cash offers can edge out financed bids.
Housing economists say this divide is reinforcing itself. As equity-rich buyers dominate listings, prices remain elevated, making it even harder for first-time buyers to break in. Entry-level homes, once a stepping stone for younger households, have become scarce, with builders focusing more on higher-end properties or rentals.
The broader implications extend beyond the housing market. Delayed homeownership can affect family formation, wealth-building and long-term financial stability, particularly for younger generations who already face higher debt burdens and living costs.
Source: Axios