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First-Time Buyer Age Hits 40 as Share Falls to Record Low

NAR says affordability pressures are sidelining younger households.

Overview

  • First-time buyers accounted for 21% of purchases between July 2024 and June 2025, the lowest share in NAR’s data, with the median first-time buyer age rising to a record 40.
  • NAR’s 2025 Profile, based on 6,103 buyer responses, points to constrained supply, high prices and elevated borrowing costs as the key barriers to entry.
  • All-cash deals set a record at roughly a quarter of sales, with repeat buyers older than ever at a median age of 62 and the overall buyer median at 59.
  • Typical down payments rose to 10% for first-time buyers, matching the highest since 1989, while repeat buyers put down a median 23%, reflecting an equity advantage.
  • NAR warns that delaying ownership from age 30 to 40 can forfeit about $150,000 in starter-home equity and urges supply-focused reforms to zoning and permitting.