First-Time Homebuyers Disappear as Market Shifts to Older Buyers
UPDATE: First-time homebuyers are vanishing from the U.S. real estate market, leaving a significant gap that could redefine homeownership for younger generations. New data from the National Association of Realtors (NAR) highlights a dramatic shift: the typical age of first-time buyers has soared to a record high of 40 years old between mid-2024 and mid-2025.
This urgent trend signals troubling implications for young adults as the percentage of first-time homebuyers plummeted to an alarming 21% of all purchases last year, nearly half the historical average. The effects of rising mortgage rates and skyrocketing home prices have effectively sidelined younger buyers, leaving them feeling increasingly locked out of homeownership.
Suzie Payne, a prime example of this changing landscape, struggled for years before finally securing a home in March 2024. After moving from Portland, Oregon to Philadelphia, she found opportunities within her budget, with homes available for just over $200,000. Yet, her journey reflects a broader narrative; she faced multiple setbacks, including job loss and family emergencies, making the prospect of homeownership feel daunting.
The NAR’s deputy chief economist, Jessica Lautz, highlights the implications of this shift: “We have a very large young-adult population who are really just seeing the door shut on them for homeownership.” This reflects a profound change in the housing market, where older, wealthier buyers are now the predominant force. The median age of repeat buyers has also increased to an all-time high of 62 years, allowing them to leverage existing home equity for new purchases.
Real estate agents across the country report an increasingly challenging environment for young buyers. Peggy Pratt, a broker associate in Massachusetts, notes that many first-time buyers are struggling to save for down payments while juggling student debt and high rental costs. “For the prices, it’s nearly impossible for them,” she says, emphasizing the need for parental assistance, which is becoming less common as family dynamics shift.
Moreover, many young adults are delaying their home purchases, opting instead to save for homes that feel more permanent rather than “starter” homes. With sellers holding on to properties for a median of 11 years, the expected churn that typically benefits first-time buyers has ground to a halt.
This trend could have long-term consequences, as Lautz warns of a “generational wealth restriction.” The opportunity cost of delaying homeownership is staggering; if individuals buy homes a decade later than the historical norm, they risk losing out on approximately $150,000 in potential equity growth.
Despite her challenges, Payne remains hopeful but cautious. “It has to be the right conditions,” she emphasizes. For now, she is waiting for a market that feels stable and secure enough to invest in—a sentiment echoed by many potential buyers who are wary of making significant financial commitments amid ongoing economic uncertainty.
As the housing market continues to evolve, experts and potential buyers alike are closely monitoring developments. The urgency to address the needs of younger buyers is more pressing than ever, with potential solutions required to prevent a prolonged crisis in homeownership.
Stay tuned for further updates as this story develops, and consider the implications for the future of homebuying in America.
