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First-Time Buyer Age Reaches 40 as Their Share Hits Record Low, Fueling Housing Affordability Fight

With prices near $410,000 to $440,000, a 50-year mortgage proposal draws cost warnings as experts flag survey-versus-credit data gaps.

Overview

  • An NAR survey for 2025 finds the median first-time buyer is 40 and first-timers account for just 21% of purchases, both worst on record for new entrants.
  • Home prices remain elevated, with the U.S. median around $410,800 in Q2 2025 (St. Louis Fed) and $440,387 in October (Redfin), as starter-home supply stays tight and some Connecticut suburbs list entry homes above $1 million.
  • President Donald Trump has promoted exploring a 50-year mortgage to lower monthly payments, though analyses show roughly $250 savings on a $400,000 loan comes with about $816,396 in total interest versus $438,156 on a 30-year loan and slower equity building.
  • Data watchdogs highlight measurement differences: NAR’s mailed survey includes cash buyers, while New York Fed credit-panel data tracks only mortgaged purchases and has historically shown younger averages.
  • Despite barriers, desire to own remains strong, with 85% in a Coldwell Banker survey calling homeownership central to the American Dream, even as many delay milestones to save.