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3h ago

First-Time Buyers Sink to Record Low as Median Age Hits 40, NAR Reports

A severe affordability squeeze is delaying entry for new buyers.

Homeownership is pulling increasingly out of reach of Americans who haven't already achieved it.
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New single-family houses on small lots in a large suburban community developed by Taylor Morrison at the Bethany neighborhood in northwest Portland, Oregon, on May 7, 2023.

Overview

  • New NAR survey data covering July 2024 through June 2025 shows first-time buyers at 21% of purchases, the lowest share since tracking began in 1981.
  • NAR cites constrained inventory, high home prices and mortgage rates still above 6% as key barriers keeping younger households from buying.
  • The typical repeat buyer is now 62 and the median age of all buyers is 59, underscoring a market tilt toward older, equity-rich households.
  • A record 26% of buyers paid all cash, while first-time buyers made a median 10% down payment versus 23% for repeat buyers; many first-timers tapped savings, financial assets and family help.
  • NAR warns that reaching ownership at 40 instead of 30 can forfeit roughly $150,000 in home equity, as policymakers push supply-side fixes and recent Fed rate cuts offer only modest relief.