A recent wave of headlines suggested that the average first-time homebuyer is now 40 years old. It is an eye-catching statistic, especially in a market defined by high prices, elevated interest rates, and limited inventory. Millennials are now well into their prime homebuying years, so the idea that many are just now purchasing at 40 resonated widely. The full picture, however, is more complex. Yes, some buyers are entering the market later, but broader national data shows that the median age has been far more stable than the headlines imply.
The National Association of Realtors (NAR) reports a steady rise in the average age of first-time buyers. According to its survey, buyers averaged 28 years old in 1991. The age rose gradually to 33 in 2019, then to 36 in 2022, 38 in 2024, and now 40. Researchers reviewing larger datasets are not seeing the same trend, though. Census Bureau data shows that the median age of first-time buyers has held at 33 from 2014 through 2023. Mortgage data also shows very little change. Adults ages 25 to 34 continue to make up roughly 42 to 45 percent of all first-time mortgage borrowers.
One explanation for the opposing results is that NAR’s survey captures a narrower slice of the market. It measures only first-time buyers who are purchasing primary residences. Younger adults who buy rental properties in more affordable areas do not appear in the results. With fewer millennials able to purchase homes overall, the percentage that can skew older than in past generations.
Many factors are influencing purchasing power of millennials, including a drastic decline in supply. Millennials are currently between 29 and 44 years old, the same stage of life when previous generations typically bought homes. But today, fewer homes are on the market. In 2003, more than 7 million people purchased homes with mortgages. In 2023, a little over 3 million did, which is the lowest figure since the Great Recession. Many current homeowners are staying put because they hold mortgage rates below 3 percent from the pandemic era, which keeps inventory low and competition high. New construction has not filled the gap.
Affordability remains a major barrier. The median U.S. home price is more than $410,000 nationwide, more than $530,000 in the West, and nearly $800,000 in the Northeast. Prices have climbed by almost $100,000 in the past five years. When paired with interest rates in the 6% range, the cost of buying has pushed many younger buyers to delay purchasing altogether.
Lifestyle trends play a role as well. Young adults today marry later, spend more years in school, and take longer to settle into permanent careers. These shifts may delay first-time buying slightly, but economists note that they do not fully explain the market pressures that younger buyers are facing.
So is the average first-time buyer really 40? The answer depends on which dataset is used. NAR’s survey suggests a meaningful rise in age, while larger national datasets show that the median age has changed very little. What both views reinforce is that the path to homeownership has become slower and more difficult. Younger buyers are still entering the market, just in fewer numbers and often with more strategic planning and wider search parameters.
Even in a challenging environment, opportunities remain. Buyers who prepare early, stay flexible, and understand current market dynamics are still finding ways to purchase their first homes. The journey may be longer than it was for previous generations, but it is not out of reach.
This post was based on information found in The Seattle Times.
