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US median first-time homebuyer age now at record-high of 40

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  Published in House and Home on Tuesday, November 4th 2025 at 15:07 GMT by Chicago Tribune
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First‑Time Homebuyers Are Getting Older: A Shift in the Housing Landscape

A new trend is reshaping the American housing market: first‑time homebuyers are purchasing homes at older ages than ever before. According to a Chicago Tribune investigation, the median age of first‑time buyers rose to 39 in 2024, up from 33 in 2019. The article draws on data from the National Association of Realtors, the U.S. Census Bureau, and a recent survey conducted by the Mortgage Bankers Association (MBA). It explains the economic, cultural, and policy forces that are pushing a generation of millennials and Gen Zers to postpone major purchases until their mid‑to‑late thirties.

The Numbers Tell the Story

The Tribune’s piece opens with a chart showing the age distribution of first‑time buyers over the past decade. In 2015, just 18 % of first‑time buyers were 35 or older, while 32 % were 30–34. Fast forward to 2024, and the percentages have shifted dramatically: 45 % are 35 or older, and only 15 % are 30 or younger. The article notes that this shift is most pronounced in the Chicago metro area, where the median buyer age climbed from 34 in 2017 to 39 in 2023.

These figures are corroborated by a 2024 MBA survey that found that 38 % of new borrowers over the past year were 35 or older. Realtors interviewed for the story attribute the delay to a combination of rising mortgage rates and the lingering impact of the COVID‑19 pandemic on employment and savings. “Interest rates have been a huge factor,” says Sara Martinez, a 33‑year‑old mortgage broker in Arlington Heights. “You can’t afford a loan with a 7 % rate if you’re still paying off student debt and paying for childcare.”

Economic Headwinds and the Student Debt Burden

The article spends significant space on the interplay between housing affordability and student loan debt. A graph comparing the median household debt of first‑time buyers in 2019 and 2024 illustrates a jump from $15,200 to $28,500 in total debt. Analysts point out that the increase is largely driven by student loans, which rose from $6,000 to $12,000 on average for first‑time buyers in the same period.

“The debt‑to‑income ratio has climbed to a level where many young adults feel that buying a home is a stretch,” explains Dr. Emily Tan, an economist at the University of Chicago. “Even with a steady job, the monthly burden of student payments pushes the housing‑to‑income ratio above the 30 % threshold that many banks consider safe.”

The Tribune also follows a link to the Federal Reserve’s “Monthly Report on Household Debt and Credit.” The report confirms that the share of borrowers carrying student debt among first‑time homeowners increased from 23 % in 2018 to 35 % in 2024.

The Impact of Inflation and Supply Constraints

Inflation and the limited supply of affordable homes compound the problem. In a sidebar, the article highlights the fact that home prices in the Chicago area have risen by 20 % since 2018, outpacing wage growth. The supply of homes for sale is 17 % lower than pre‑pandemic levels, according to data from the Chicago Housing Authority. Because buyers are forced to compete for a smaller pool of homes, the “price pressure” pushes the average purchase price above the 2024 median household income.

Housing analyst James Lee notes, “We’re seeing a tightening of the market. Older buyers tend to be more willing to pay a premium because they’re more likely to have a stable job and a larger down payment. Younger buyers are held back by both higher rates and fewer units.”

The Tribune follows a link to a recent report by the Urban Institute, titled Housing Affordability in a Post‑Pandemic World. The report contains case studies from cities across the Midwest that show similar age shifts among first‑time buyers.

Cultural Shifts and Changing Priorities

Beyond the economic variables, the article examines shifting cultural attitudes toward homeownership. A poll conducted by the Pew Research Center, linked within the story, found that only 42 % of respondents aged 18–34 consider homeownership a top financial goal. Instead, many in that cohort prioritize experiences, travel, and investing in index funds. The Tribune’s writer cites a recent Harvard Business Review article that argues millennials have reframed their concept of “home” as a flexible space that can be rented or co‑owned rather than owned outright.

In the Chicago suburbs, a local non‑profit called HomeFront is experimenting with “shared ownership” models where buyers can purchase a portion of a home while the rest is owned by a cooperative. The Tribune’s feature includes an interview with HomeFront founder Maria Gonzales, who says, “We want to make homeownership accessible for people who might otherwise have to wait until they’re in their fifties.”

Policy Responses and Future Outlook

The article concludes with an overview of policy proposals aimed at easing the path for younger buyers. It discusses the proposed “First‑Time Homebuyer Tax Credit” that would be phased in over five years, and the expansion of the Low‑Income Housing Tax Credit (LIHTC) to include a “young buyer” exemption. In Chicago, the city council is debating a new ordinance that would grant a 1‑year moratorium on the state’s real‑estate transfer tax for first‑time buyers under 35.

According to the Tribune, realtors expect the median age of first‑time buyers to rise further if mortgage rates remain above 6 % and if housing supply does not improve. “We’re looking at a slow, steady shift,” says Martinez. “The key is whether we can get the supply side to catch up.”

The piece ends with a call to action for readers: to monitor their personal financial health, to explore alternative housing models, and to engage with local policymakers. It also provides a link to the Chicago Housing Authority’s resource hub, where prospective buyers can find counseling services and financial education tools.

In sum, the Chicago Tribune’s investigation paints a picture of a housing market that is aging, strained, and in need of thoughtful intervention. The median first‑time buyer’s age is no longer a simple statistic; it reflects broader economic realities, shifting values, and the evolving landscape of urban living.