The average age of first-time homebuyers has reached a new high as the housing market becomes more unaffordable due to high prices and elevated mortgage rates, according to a new report.
The median age of first-time homebuyers in the United States has reached 38 years old, up from 35 last year. It also marks a significant increase from the median age of first-time buyers in the 1980s, when individuals in their late 20s often bought their first homes.
Overall, the ages of first and repeat homebuyers also increased to 56 years old, on average, marking a new high. In comparison, the average age of first and repeat buyers last year was 49 years old, according to the National Association of Realtors' 2024 Profile of Home Buyers and Sellers.
How Many First-Timers Bought a Home This Year?
In addition to an increase in the average age of first-time buyers, the share of people who bought their first home this year dropped to 24%. That fell from 32% the prior year.
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For perspective, the usual share of first-time buyers was around 40% prior to the 2008 housing market crash, the NAR noted.
"Homebuying for the younger generation is wildly unaffordable," Noah Damsky of Marina Wealth Advisors said, as quoted by CNBC. "Saving for a down payment can be challenging without an outsized income, and a median income only covers the bare necessities."
Why Are First-Time Buyers Struggling To Enter the Housing Market?
The housing market is currently struggling with an affordability crisis due to high homeownership costs.
As of September, the median home sale price is $427,496, per data from Redfin. Assuming a first-time buyer wants to put a down payment of 18%---the median percentage buyers put down, per the NAR---they would need to save up $76,949. That is a significant expense, especially for households earning a median income of $80,160.
If they are able to pay the down payment, they would still have to contend with elevated mortgage rates. As of the week ending Oct. 31, the contract rate for the 30-year term was 6.72%. That would place monthly payments at approximately $2,266.
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