The average age of first-time homebuyers in the United States has reached a historic high of 40 years old, according to a report released by the National Association of Realtors (NAR) on November 4th. This represents a decrease in the percentage of first-time homebuyers to 21%, marking a new historical low compared to nearly 50% in 2010.
The survey, covering transactions from July 2024 to June 2025, revealed that married couples accounted for 61% of homebuyers, while single women represented 21%, single men only 9%, and unmarried couples 6%.
In terms of income, the median household income for first-time homebuyers in 2024 decreased to $94,000, down from $97,000 in 2023. Among these buyers, 64% were previously renting, and 22% were living with family or friends.
Jessica Lautz, NAR’s Vice President of Demographics and Behavioral Insights, noted in the report that the decline in the proportion of first-time homebuyers highlights the consequences of the current shortage of affordable housing in the market.
Since 2007, the market share of first-time homebuyers has halved, which Lautz believes may have significant implications for the future of the housing market, as first-time buyers have accumulated less property wealth and may be less likely to move in the future.
The report indicated that the average down payment for first-time buyers was 10%, the highest level since 1989. Nearly 60% of buyers used personal savings to finance the down payment, while over 20% relied on financial assets (such as stocks) or gifts/loans from family or friends.
Shannon McGahn, NAR’s Executive Vice President and Chief Advocacy Officer, emphasized the importance of homeownership in wealth accumulation, suggesting that delaying the age of homebuyers could result in a loss of approximately $150,000 in asset value for a starter home. She called for policies addressing the root cause of the “affordable housing crisis” by tackling the issue of housing supply shortages.
McGahn also advocated for increasing the number of homes for sale, revitalizing vacant properties, simplifying zoning regulations, and modernizing construction techniques to alleviate the housing affordability challenges.
Vlora Sejdi, Chair of the Hudson Gateway Association of Realtors covering New York City and its suburbs, shared that some of her first-time buyer clients are now in their fifties.
“People are just starting later,” she said. “Many carry student debt, making it difficult to save while still paying rent, leading them to delay marriage, childbirth, and home purchase.”
In New York City, the median price for a single-family home is currently $825,000, according to Realtor.com data. In Westchester County, a suburb of New York, the median price stood at $994,500 as of the end of September.
Sejdi highlighted the challenges faced by buyers in Westchester, where affordable housing for the working class is scarce, with prices tripling in recent years. She noted that those wanting to be close to transportation hubs often opt for apartments, co-ops, or townhouses, while those seeking single-family homes have to look further north.
She recalled a client who took over a year to find a home that met both their preferences and budget.
“Buyers also need to consider monthly expenses like insurance and utilities,” she added. “I usually ask to see the seller’s utility bills for the past year, so the buyer has an idea of how much they might spend each month.”
Sejdi stressed the importance of homeownership as a means to build wealth. “By taking the first step, you can start building wealth,” she said. “If you keep renting, you’ll never move up the ladder.”
Los Angeles, as the second-largest metropolitan area in the U.S., has also seen a trend of older millennials entering the housing market for the first time. The median price for a single-family home in the region is around $1.2 million, according to Realtor.com data.
Anne Russell, Chair of the Los Angeles Association of Realtors, highlighted that high home prices, rising mortgage rates, and outdated capital gains tax regulations have constrained the first-time homebuyer demographic.
“The soaring home prices and the capital gains tax law from 1997 have discouraged many potential sellers from moving,” she explained.
Under the current tax law established in 1997, individuals can exclude up to $250,000 in capital gains tax when selling their primary residence, and for married couples, the exclusion is up to $500,000.
A bipartisan bill known as the “More Homes on the Market Act” is being considered by Congress, aiming to double the tax-free exemption to $500,000 for individuals and $1 million for married couples. Profits exceeding the exemption amount would be subject to a 0% to 20% long-term capital gains tax rate based on taxable income.
Russell believes that passing this legislation would help unlock housing inventory and alleviate tax barriers for sellers. She recounted her reluctance to sell her five-bedroom home due to potential capital gains tax implications, having purchased it for $359,000 in 1988 and now valued at around $3.5 million.
“Estate planners often advise older clients not to sell their homes, so the property can be passed directly to heirs upon passing,” she explained. “Now you see many people staying in large homes, converting to downstairs bedrooms, making necessary renovations to stay put.”
Russell noted, “High rents make it challenging for people to save money, leaving young individuals unable to afford homes. Even starter homes now exceed $1 million and are often snatched up by developers.”
According to RentCafe data, the average monthly rent for a 725-square-foot, one-bedroom apartment in Los Angeles is $2,762.
Lutalo McGee, Chair of the Chicago Association of Realtors for Chicago, the third-largest metropolitan area in the U.S., stated that the median list price for single-family homes in the city center is $499,000, while in surrounding areas, it is $354,000.
As a real estate broker and owner of Ani Real Estate, McGee acknowledged the increasing age of first-time homebuyers in recent years.
“The biggest challenge is helping people find houses that meet their expectations,” he told the Epoch Times. “They often get pre-approved for mortgages, but after considering house prices, taxes, and insurance, they often realize they can’t afford the homes they originally wanted.”
NAR found that the median age of repeat homebuyers is now 62 years old, with 30% being all-cash buyers. Overall, the median age of homebuyers is 59 years old, with only 24% of households having children under 18, marking a new historical low.
Among all buyers, 14% purchased multigenerational homes, down from 17% in 2024. Over 41% cited caring for elderly parents as their primary reason for buying such homes, while 29% aimed to save expenses, and only 27% mentioned buying for adult children returning home.
On the seller’s side, the median tenure of selling homeowners in their homes has reached a high of 11 years. Half of the surveyed sellers indicated purchasing newer homes, and 34% mentioned seeking larger houses.
Sergio Altomare, Co-Founder and CEO of Hearthfire Holdings in Pennsylvania, attributed the delayed homebuying decisions in the U.S. to various factors such as faster home price growth compared to income increases, rising living costs leading to increased debt, and reduced inventory due to institutional homebuying practices.
Altomare pointed out that daily expenses like insurance, utilities, groceries, dining out, etc., are reducing the amount families can save. “Combined with monthly credit card debt, it’s like a runaway train, with more and more families unable to save enough for a down payment,” he added.
Many singles and couples are now living paycheck to paycheck, leading to millennials and Gen Z delaying marriage, childbirth, and home purchase.
This year, institutional homebuying has significantly increased, further intensifying the competition in the single-family home market. According to a report by Batchdata in September, 33% of all transactions for single-family homes in the second quarter of 2025 were purchased by real estate investors, who often renovate and rent them out.
Altomare advised careful financial planning to improve financial situations. “Setting personal savings goals, enhancing financial literacy to understand the true cost of things is needed,” he said. “Even small expenses like cable TV subscriptions, magazines, etc., can add up monthly.”
As people face these challenges in the real estate market, the understanding and adaptation to changing dynamics become essential for both buyers and sellers to navigate the evolving landscape of homeownership and wealth accumulation.