Average Age of First Time Home Buyers raises to 38

Subject: The new face of First-Time Homebuyers: Why First-Time Homebuyers Are Getting Older

Have you noticed that people seem to be buying their first homes later in life? You’re not imagining things. I bought my first home at age 24 (in 1979) and just a decade ago the average age hovered around 31. According to the latest data from the National Association of Realtors (NAR), the median age of first-time homebuyers in the U.S. has climbed to 38 years old—a record high.

What’s behind this dramatic shift? Let’s explore the reasons and what it means for anyone dreaming of homeownership.

• Rising Home Prices: Home prices have soared, especially in popular urban and suburban markets. Saving for a down payment now takes longer, even for those with steady jobs.
• Higher Interest Rates: Even though interest rates have returned to historic averages, (6.75% average between 1995 & 2025) most homebuyers got 'used to' the buying power of low interest rates for the decade ending in 2022.  
• Student Debt: Many younger adults are juggling hefty student loans, making it harder to qualify for a mortgage or save enough for upfront costs.
• Low Inventory: Fewer housing starts & fewer homes for sale has resulted in fierce competition.

Additionally, these market trends have collided with societal changes:

• Pandemic Disruption: The Pandemic caused a great disbursion of people; Those who could move & or buy a house; DID! Including many 1st time home buyers who bought earlier than they otherwise might have. The First Timer Home-Buyer age stayed under 33 through 2021, per NAR.
• Delayed Household Formation: People are marrying and starting families later, which often delays the desire or need to buy a home.
• Changing Lifestyles and Priorities: Some would be home buyers are prioritizing career growth & travel / lifestyle over settling down. 
• Economic Uncertainty: The pandemic, inflation, and job market shifts have made younger generations more cautious about taking on big financial commitments.

What Does This Mean for Buyers?

Buying a home later in life isn’t necessarily a bad thing. Many first-time buyers in their late 30s or 40s have more stable careers, higher incomes, and clearer ideas of what they want in a home. They may also have stronger credit profiles, making it easier to secure a mortgage with favorable terms.

However, waiting longer can have downsides too. It may mean building home equity later, which can impact long-term wealth building and push the prospect of paying off a 30 year mortgage well into their retirement years. It also means facing more competition from seasoned buyers and investors in a tight market.

Tips for Today’s First-Time Buyers

• Start Saving Early: Even small, regular contributions to a down payment fund can add up over time.
• Explore Assistance Programs: Many states and cities offer grants or low-interest loans for first-time buyers—don’t overlook these resources!
• Work with a Pro: A knowledgeable real estate agent can help you navigate the market, negotiate better deals, and find hidden gems.
• Get Pre-Approved: Knowing what you can afford—and showing sellers you’re serious—gives you a big advantage.

The journey to homeownership may be longer than it used to be, but it’s still possible. Whether you’re 28 or 48, your first set of keys is a milestone worth celebrating. The landscape may have changed, but the dream is alive and well—just with a slightly different timeline.

Source: National Association of Realtors Profile of Home Buyers and Sellers