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First-Time Buyers Fall to Record Low as Median Age Hits 40, NAR Finds

New surveys depict a market tilted toward cash-rich repeat buyers, leaving younger households delaying milestones to reach homeownership.

Overview

  • First-time buyers accounted for about 21% of purchases in the 12 months through June, the lowest share on record, according to the National Association of Realtors.
  • The median age of first-time buyers climbed to 40 from 33 in 2021, reflecting delayed entry linked to high prices, elevated mortgage rates and scarce entry-level inventory.
  • Repeat buyers with substantial equity dominated activity, with all-cash transactions averaging 26% and homeowner tenure reaching a record 11 years, contributing to market gridlock.
  • A Harris Poll for Coldwell Banker finds 71% of aspiring owners are postponing major life milestones, including 84% of Gen Z respondents.
  • Policy ideas under discussion include zoning reforms, manufactured-housing changes, longer mortgage terms and targeted down-payment aid, while recent federal tariffs on building inputs could raise construction costs.