First-time homebuyers are older than ever before: National Association of Realtors

As the dream of homeownership slips further out of reach, first-time buyers are feeling the heat, with the median age for their first purchase now at 38 years old—quite a jump from the late 20s of the 1980s. This trend, highlighted in a recent National Association of Realtors (NAR) survey, paints a tough picture for aspiring homeowners grappling with inflated housing costs, rising debt, and fierce competition from all-cash buyers. Even as household incomes for first-time buyers have risen by $26,000 in the last two years, these gains haven’t kept pace with the escalating housing costs, making it tougher than ever for newcomers to enter the market.

Repeat buyers, too, are entering the market at older ages, with the typical age now reaching 56, up from 49 last year. For those older first-time buyers, it’s often a story of extended saving periods as they work to pay down debts like student loans and credit card balances while navigating an economy marked by higher inflation. As NAR’s Deputy Chief Economist Jessica Lautz points out, many buyers likely had bids fall through when outmatched by all-cash offers, underscoring the barriers many face even when they’re ready to buy.

The share of first-time buyers also hit a historic low this year, dropping to 24%—a striking contrast to the pre-2008 norm of around 40%. This decline isn’t just a statistic; it reflects the scarcity of affordable homes and the burden of rising costs, which Lautz says are pushing young buyers further from the market. With the share of first-timers so low, today’s home market looks vastly different from the one many parents or grandparents entered years ago.

Adding another layer of complexity, rising mortgage rates hit first-time buyers hardest. Unlike repeat buyers who can leverage their existing home equity to ease the financial impact, first-timers rely solely on their savings for a down payment, leaving them to take on larger mortgages. Realtor.com’s Joel Berner explains that without a home to sell, these buyers are at a disadvantage—they have to finance more of their home purchase and face tougher competition, making each offer more difficult to secure.

Larger down payments are becoming a trend for those who do make it into the market. According to NAR, repeat and first-time buyers are putting down larger initial sums, with typical down payments at a record high since 2003. While these larger payments help reduce mortgage payments in the face of high interest rates, they’re a big ask for first-time buyers without equity to draw from. This year’s typical first-time buyer down payment of 9%—the highest since 1997—shows just how competitive the landscape has become………[read more]

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