First-time homeowners are getting older
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The typical first-time homebuyer in the U.S. is now 40 — the oldest on record, according to a report by the National Association of Realtors.
Why it matters: High prices, 6% mortgage rates, and a shortage of affordable houses are delaying homeownership for many.
State of play: First-timers made up 21% of buyers between July 2024 and June 2025 — a new low in data going back to 1981.
- Some are co-buying with friends or moving further afield to get a foot in the door.
- Many are tapping family money: 60% of Gen Z and 57% of millennials say they couldn't have purchased a home without help from relatives, BMO bank research shows.
The latest: Perhaps another scary thought for first-time buyers is President Trump's recent pitch for a 50-year mortgage, which critics say would lower a homeowner's monthly payment but greatly increase their interest over the lifespan of their mortgage and keep homeowners in debt essentially their entire adult lives.
Yes, but: Some economists told NPR the half-century mortgage is not that different than the 30-year, which many people have because most people leave their homes — and their mortgage — well before that term is up and many refinance for better rates.
Between the lines: Equity-rich repeat buyers (with a median age of 62, the highest ever) have more ability to make big down payments and all-cash offers.
- A record 26% of all purchasers paid cash, up from 20% the year before, NAR found.
- "The housing market remains divided between an all-time high of all-cash home buyers and an all-time low of first-time buyers," NAR researchers wrote in the report.
The bottom line: 40 is the new 30.