Younger homebuyers face barriers in Indianapolis, nationwide
Add Axios as your preferred source to
see more of our stories on Google.
Millennials made up about 45% of mortgage purchase inquiries in the Indianapolis metro area last year, down from 50% in 2023.
Why it matters: High housing prices, mortgage rates still above 6% and a shortage of affordable homes are keeping many shoppers, especially younger people, out of the market.
Case in point: The median age of 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.
- First-timers made up 21% of buyers between July 2024 and June 2025 — a new low in data going back to 1981.
Driving the news: Millennials made up nearly half of LendingTree mortgage purchase inquiries in 2024 across the 50 biggest U.S. metros, but their share is shrinking.
- Indy's millennial share was the 12th lowest among analyzed metros.
State of play: Expensive mortgages are deterring people from buying their first home (or moving into a new one).
- Meanwhile, more Gen Zers have entered the market, carving out a slice of the mortgage pie.
Between the lines: Many younger shoppers 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 other side: 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.
Zoom in: As homeownership slips further out of reach for many local 30-somethings, Hoosier renters are also having a hard time.
- State economic advocacy organization Prosperity Indiana last week put calls for affordable and habitable housing at the top of its 2026 priority list. The organization's latest annual report says Indiana ranked last in the Midwest for renter incomes.
- A separate report from the Fair Housing Center of Central Indiana found that half of all renters in Marion County are cost-burdened — meaning that they spend 30% or more of their monthly income on rent and utilities.
What we're watching: Just 7% of millennials are touring open houses or searching for homes in their area, Bankrate research shows.
- Many have stopped looking because they can't afford the homes they want.
The bottom line: 40 is the new 30.