BREAKING: A new report reveals that the median age of first-time homebuyers in the United States has surged to an unprecedented 40 years old, marking the highest figure in over four decades. This alarming trend, confirmed by the National Association of Realtors (NAR), highlights the growing affordability crisis that is shutting younger generations out of the housing market.
As of July 2024, the share of first-time buyers has plummeted to just 21%, a stark decline from nearly 40% prior to the 2008 financial crisis. This significant shift suggests that many young adults are facing increasing barriers to homeownership, compelling them to delay their entry into the market.
Jessica Lautz, NAR’s deputy chief economist, warns, “The implications for the housing market are staggering. Today’s first-time buyers are building less housing wealth and will likely have fewer moves over a lifetime as a result.” The data indicates that the struggle to secure affordable housing is creating a generational divide, where seasoned buyers with substantial equity can make larger down payments and all-cash offers, leaving first-time buyers at a significant disadvantage.
The emotional toll is evident: fewer than 40% of adults under 30 believe in the attainability of the American dream, a stark contrast to nearly 70% of those aged 65 and older, according to recent findings from Pew Research. The NAR warns that postponing homeownership until age 40 instead of 30 could mean missing out on approximately $150,000 in equity on a typical starter home.
Both Shannon McGahn, NAR’s executive vice president, and experts emphasize the urgent need for policies addressing the root causes of the affordability crisis, primarily the inadequate housing supply. The report highlights how rising rents and overwhelming student loan debt are further complicating the situation, making it increasingly difficult for young buyers to save for down payments.
The median down payment has now reached 19%, the highest level in decades, underscoring the financial strain on potential first-time buyers. All-cash purchases have also soared, averaging 26% over the last year, indicating that repeat buyers are capitalizing on their home equity to navigate the current market conditions.
The demographic landscape of homebuyers is shifting dramatically; the share of buyers with children under 18 has fallen to a record low of just 24%, compared to 58% in 1985. This shift reflects broader societal changes and the increasing challenges families face in securing affordable housing.
The NAR’s latest profile of buyers and sellers report is based on comprehensive survey data covering transactions from July 2024 to June 2025. As the housing market continues to evolve, all eyes will be on how policymakers respond to these startling trends.
Stay tuned for further updates on this developing story, as the implications for future generations of homebuyers are profound and far-reaching.
