Not only did the share of first-time buyers hit a record low last year, their median age is now up to 38 years old, according to the National Association of Realtors (NAR), illustrating just how hard it is for rookies to step onto the homeownership ladder.
To bring that into perspective, that means the typical first-time buyer has been out of high school for 20 years, but also just 24 years away from being able to collect social security, Lance Lambert of the ResiClub, a media and research firm, points out. Another way of looking at it: In 1991, the group’s median age was merely 21.
At the same time, according to NAR’s latest Profile of Buyers and Sellers, the median age for repeat buyers was 61, helping to drive the median age of all buyers last year to an all-time high of 56.
It’s not that first-timers don’t have the money. In 2024, their median household income of $97,000 a year, up $26,000 just two years ago. Furthermore, in 2024, they put down 9% of the purchase price, the most since 1997. Repeat buyers’ median earnings were $114,300 last year, less than $20,000 higher than first-timers, and 18% down payments.
But high house prices, coupled with high mortgage rates – at least from their perspective – and a limited inventory of starter homes has made it difficult for rookies to take the leap.
“The U.S. housing market is split into two groups: first-time buyers struggling to enter the market and current homeowners buying with cash,” said NAR Deputy Chief Economist and Vice President of Research Jessica Lautz. “First-time buyers face high home prices, high mortgage interest rates and limited inventory, making them a decade older with significantly higher incomes than previous generations of buyers.”
But Lambert of ResiClub says there’s more at work here contributing to what he calls the “vanishing first-time buyer.” He notes the fact that younger generations are delaying life events compared to previous generations — attending school longer, marrying later, buying homes later, and having children later — are adding to the trend.
Further highlights from the NAR report:
- Nearly three out of every four buyers did not have a child under the age of 18 living in their homes. That, too, is the highest share on record.
- Single women were far more active then men, Their share grew to 20%, with singles accounting for 5 percent alone. Men accounted for just 8% of all sales.
- On the seller side, the typical age was 63, another all-time high, and the share of married couples selling their places was at 69%.
