First-Time Homebuyers Are Older Than Ever Before. Here's Why

Owning a home is a big goal for many people in America. However, it's becoming a reality a bit later in life than it used to. Now, for the first time ever, the average age of someone buying their first home is nearly 40 years old!

A report from the National Association of Realtors (NAR) says the average age of all homebuyers is 56, which is seven years older than back in 2023, setting a new record in the 43 years of the NAR's history. Even people buying a home for the second or third time are older, with their average age now at 61.

Why are people buying homes later? The journey to buy a home has gotten much harder in recent years. Mortgage rates, which is the interest you pay on a home loan, have gone up from about 3% to over 7%. 

While that might not sound like much, it makes monthly payments a lot higher than they used to be. On top of that, the price of homes keeps going up, making it even harder to afford a place of your own.

For people trying to buy their first home, these high prices and mortgage rates mean they can't afford to enter the market. Jessica Lautz from NAR explains that high costs, along with not enough homes for sale, are big barriers. 

It's a bit easier for people who already own a home because they can sell their current house and use that money to help buy a new one.

This trend of older homebuyers didn't just start because of recent difficulties like the pandemic. It's been happening slowly over decades. Americans are choosing to do things like get married or start their careers later in life, which delays when they can afford to buy a home.

Another problem is there aren't as many affordable "starter" homes available, making it tough for first-time buyers to find something within their budget. 

Check out: Top 5 Loan Options for First-Time Homebuyers in 2025

Plus, current homeowners are choosing to stay where they are, either because moving is too expensive or they're just happy with their current home. This means there are even fewer homes available for sale.

Saving up for the initial costs of buying a home, like the down payment, is taking longer for young buyers, pushing the average age of buyers higher. Despite these obstacles, surveys show that lots of Americans still really want to buy a home. However, fixing the issues that make it hard for younger buyers will take some time.

In summary, buying a home is becoming a goal that people achieve later in life due to a mix of high prices, not enough affordable homes, and personal choices like starting careers later. While the dream of homeownership is still strong, reaching it is a path that now takes a bit longer.

Read more: Can You Buy a House Without Putting Any Money Down?

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