Average First-Time American Homebuyer Is Now 40 Years Old
In just one generation, the dream of owning a home has been pushed from the late 20s to the early 40s.
The median age of first-time homebuyers is now 40, up from 28 in 1991 and 33 just five years ago, according to new data from the National Association of Realtors.
WHAT’S GOING ON?
Younger Americans are juggling student loans, rising rents, and higher costs across the board. That makes saving for a down payment nearly impossible. Plus, there just aren’t enough affordable homes on the market. Inventory is still historically low.
Bigger picture: The economic and societal ripple effects are enormous. When people buy their first home later in life, they’re building less wealth and moving less frequently during their lifetimes. That can impact major life decisions like whether to have kids or jump careers.
The share of first-time buyers in the market has dropped to about 21% — that’s half of what it was before the 2008 housing crash, according to NAR. Bottom line: The starter home feels more like a finish line.