First-time home buyers are now older than ever, with a median age of 40. Discover what’s driving this shift and how to navigate today’s housing market.
If you feel like everyone buying their first home these days is a little older than they used to be, you’re absolutely right.
According to the 2025 Profile of Home Buyers and Sellers from the National Association of REALTORS®, the median age of first-time home buyers hit 40 this year, the highest on record.
That’s up from 38 last year, and way up from the late 29 back in the 1980s. So what’s behind this massive generational shift?
Let’s dig in.
It’s Not Just You. Buying a Home Really Is Harder.
The same report shows that first-time buyers now make up only 21% of all home purchases, the lowest share ever recorded (historically, it has been around 40%).
That means fewer people are managing to buy their first home, and those who do are often waiting longer, saving more, and carrying heavier financial baggage than buyers from previous generations.
So what’s causing the delay?
The Housing Market’s Growing Divide
While the share of first-time buyers is getting smaller, repeat buyers (those selling one home to buy another) continue to dominate. They’re older, have more equity, and often don’t need financing at all. In fact:
The median age of repeat buyers is 62, an all-time high.
Nearly 30% of repeat buyers paid all cash, compared to just 8% of first-time buyers.
Repeat buyers made median down payments of 23%, while first-timers managed 10%, which is the highest since 1989.
That combination of cash and equity makes it tough for first-timers to compete, especially in markets where homes still sell close to the asking price (buyers in 2025 typically paid 99% of the list price).
Why It’s So Hard to Break Into the Housing Market
One of the biggest culprits is affordability, with several trends working against new buyers:
Higher mortgage rates: The average during the study period was 6.69%, keeping monthly payments higher than pandemic years.
Limited affordable inventory: Most new listings are at higher price points, putting starter homes in short supply.
Student loans and rent: Among first-time buyers who succeeded, 59% used personal savings and 26% tapped financial assets like 401(k)s or stocks, showing just how hard it is to save cash while paying rent.
Put all of this together, and it makes sense why the typical first-time buyer in 2025 was 40 years old. It’s taking longer than ever to reach that first closing table.
What’s Driving the Advantage for Repeat Buyers
On the other side of the gap, repeat buyers have had a decade or more of home price appreciation to build equity.
They’ve owned their homes for a record 11 years before selling, and many are now cashing out that equity to buy their next home outright or with a smaller mortgage.
Because they’ve already played the real estate game once, they’re better positioned to navigate multiple-offer situations and can act faster, two key advantages in a tight market.
What You Can Do If You’re a First-Time Buyer
If you’re a first-timer feeling frustrated, don’t give up. There are real ways to bridge the gap — especially at the local level.
Here’s where to start:
Explore down-payment assistance programs. There are programs and forgivable loans that can help first-time buyers with upfront costs.
Ask your lender about creative financing. Some offer 2-1 buydowns or temporary rate reductions that can lower your initial payments.
Take a look at new construction. Many builders are offering rate buydowns or other incentives to help make monthly payments more affordable.
Consider multi-generational living. Fourteen percent of buyers purchased a multi-gen home in 2025, often to save on costs or care for family members.
Work with an experienced agent. Eighty-eight percent of buyers used a real estate professional in 2025, and most said the top reason was to find the right home and negotiate terms, which is especially important when every dollar counts.
The Bottom Line
The path to homeownership might look different in 2025, but there’s still plenty of opportunity.
Yes, the average first-time buyer is older, but that also means more prepared, more stable, and more strategic.
If you’re planning to buy in the next year or two, start the conversation early. I can walk you through local programs, creative financing options, and what it really takes to go from “someday” to “sold.”
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