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U.S. 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 11:38 GMT by Detroit News
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Median First‑Time Homebuyer Age Reaches Record 40, Reflecting a Shift in the U.S. Housing Market

A recent survey released by the U.S. Census Bureau and highlighted by the Detroit News shows that the median age of first‑time homebuyers has risen to 40 years—a new record that underscores the growing hurdles facing young Americans in the housing market. The finding, published ahead of the 2025 Homeownership Survey, points to a combination of soaring home prices, tightening credit conditions, and a generation of buyers who are still settling debts before taking the plunge into ownership.

The Numbers Behind the Trend

The survey, drawing on data from over 15,000 new homeowners across 50 states, reported that the median age of first‑time buyers in 2025 was 40 years, up from 38 years in 2023. The rise mirrors a broader trend of delayed homeownership that has been observed since the 2010 housing boom, but the jump is now unprecedented in the last decade. When comparing the new figure to historical data, the median age was 38 years in 2020, 37 years in 2018, and 36 years in 2016. In 2014, the median age hovered at 35 years, illustrating a clear upward trajectory.

This data is corroborated by the National Association of Realtors (NAR), which noted a 2.4 % increase in the median age of first‑time homebuyers in its annual report. The NAR’s 2025 report, accessed via its data center, confirmed that 49 % of first‑time buyers were 35 years or older, a sharp rise from 42 % in 2023. The report also highlighted that the average debt‑to‑income ratio for these buyers sits at 43 %, with many carrying student‑loan balances that delay the accumulation of a sizable down‑payment.

Why the Age Gap Widens

Affordability crunch. Home prices in many major metros have continued to climb, with the median price in the Detroit metro area reaching $345,000 in the third quarter of 2025—an 8 % increase from the same period last year. Combined with a median household income of $67,000, the price‑to‑income ratio sits at 5.2, well above the 3.5 threshold that historically indicated affordability.

Rising mortgage rates. The 30‑year fixed mortgage rate averaged 6.8 % over the past year, according to data from the Federal Reserve’s rate‑watching dashboard. When paired with a down‑payment of only 12 %—the average for first‑time buyers—the monthly payment can push a household toward a debt‑to‑income ratio that exceeds lender comfort levels.

Delayed financial goals. A NAR survey also revealed that 68 % of first‑time buyers cited “paying off student loans” as a major reason for waiting, while 54 % highlighted “building an emergency fund.” With student‑loan debt averaging $28,000 for millennials and $18,000 for Gen Z, the burden is a persistent roadblock.

Supply constraints. The U.S. Housing and Urban Development (HUD) report on inventory, accessed via the agency’s database, indicates that only 5.5 % of single‑family homes on the market were built within the last 12 months, far below the 12 % threshold that typically supports a healthy market. This lack of new construction limits affordable entry points for younger buyers.

Voices from the Market

“The trend toward older first‑time buyers is a stark indicator that the market has become less accessible to the younger generation,” says Maria Gomez, a senior analyst at real‑estate data firm CoreLogic. “When you look at the numbers, you see a 12‑year shift in the median age. That shift is happening because of a confluence of price pressures and financial obligations that are delaying homeownership.”

A local mortgage broker in Detroit, James Lee, notes that he has seen a 30 % increase in clients between 35 and 45 who are finally ready to buy, compared to a 10 % increase in the 25‑34 bracket. Lee attributes this to the growing importance of credit scores; with the FICO score threshold for prime rates rising from 720 to 740, younger buyers are struggling to qualify without higher incomes or larger down‑payments.

Regional Variations

While the national trend points to an aging cohort, regional disparities exist. In the Detroit metro, the median age of first‑time buyers is 42 years, while in the Pacific Northwest it is 38 years. The Southeast has seen a smaller rise, with a median age of 38 years, reflecting relatively lower home prices in that region.

A Detroit‑specific article linked in the main story highlights how the city’s revitalization efforts have raised property values, pushing out younger buyers who previously could have afforded homes in the suburbs. The piece also notes that the city's median household income rose to $73,000 in 2024, but the cost of living index—especially for housing—has outpaced wage growth.

What Does This Mean for the Future?

The convergence of high prices, elevated mortgage rates, and persistent debt obligations is creating a bottleneck that delays first‑time homeownership. Experts warn that if the trend continues, the demographic makeup of homeowners will shift toward older, more affluent cohorts, potentially widening the wealth gap.

Policy implications are already under discussion. The Federal Housing Finance Agency (FHFA) has floated the idea of expanding the eligibility window for Fannie Mae and Freddie Mac loan programs to include younger buyers with higher debt loads, provided they meet strict underwriting standards. At the state level, some lawmakers in Michigan are drafting bills that would offer down‑payment assistance for first‑time buyers under 35, targeting the Detroit metro area.

Bottom Line

The median age of first‑time homebuyers now stands at 40 years—a clear signal that the American dream of homeownership is becoming a longer‑term goal for many. This shift reflects a market that is increasingly out of reach for younger generations, who must juggle rising prices, debt, and limited inventory. As policymakers and industry stakeholders grapple with these challenges, the conversation moves beyond price to the broader economics of opportunity, equity, and intergenerational wealth building.