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First-time homebuyer age hits record high of 40 in latest survey

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  Published in House and Home on Wednesday, November 5th 2025 at 14:51 GMT by KHQ

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First‑time Homebuyers Reach a Record Median Age of 40, According to Latest National Survey

A recent report from the National Association of Realtors (NAR) reveals that first‑time homebuyers in the United States have reached a record‑setting median age of 40, the highest figure on record. The data, released in a February 2024 press release and echoed in a national news roundup, reflects a steady shift toward older buyers amid a housing market still feeling the aftershocks of the pandemic, a tightening credit environment, and a persistent shortage of affordable inventory.

Key Findings from the NAR Survey

The NAR’s 2023 National Survey of Home Buyers and Sellers—an industry‑wide study that tracks purchase activity across the country—shows that the median age of first‑time buyers jumped 4 years from 36 last year to 40 this year. That 40‑year median stands as the highest age the organization has recorded since it began tracking the metric in 1996.

The study also reports that the proportion of first‑time buyers in the 30‑34 age range declined by 3 percentage points, while the share in the 35‑39 range rose by 5. The 40‑44 bracket saw its largest increase in over a decade. These shifts mirror broader demographic trends: Millennials, now in their 30s and 40s, are moving into a phase of life where they can afford to buy a home, whereas younger cohorts—especially those still in school or early in their careers—continue to face higher student loan burdens and more stringent mortgage criteria.

Housing affordability remains a major hurdle. In the survey’s accompanying commentary, NAR analyst David Bowers notes that the national average monthly housing cost (including mortgage, taxes, and insurance) has increased by 8% over the past two years, while wage growth has lagged behind. This mismatch is a key driver behind the rising median age, Bowers said, as many potential buyers wait until they can secure a higher income before taking on a mortgage.

Why the Age Shift Matters

The age shift has implications for both the home‑building industry and the broader economy. Builders have responded to the demand from older buyers by offering more single‑family homes and townhomes in suburban and exurban locations—properties that often come with amenities like large yards, home‑office spaces, and proximity to schools. Meanwhile, the construction of multifamily units, which historically attracted younger renters, has slowed in some markets due to zoning restrictions and higher development costs.

Economic analysts point to a potential ripple effect on the mortgage‑interest‑rate curve. As older, wealthier buyers secure larger down‑payments and lower debt‑to‑income ratios, lenders may be more inclined to offer favorable terms, which in turn could lower rates for the entire market. However, the recent rise in mortgage rates—currently hovering around 6% in the U.S.—continues to dampen the buying power of first‑time buyers across all age groups.

Contextual Links

The NAR press release, which is the source of the median age data, can be found here: https://www.nar.realtor/newsroom/press-releases/nar-releases-2023-national-survey-of-home-buyers-and-sellers. This page includes a downloadable PDF of the full survey, which breaks down purchase trends by region, income level, and credit score. In addition, a February 2024 article in the Washington Post examines how student‑loan debt and rising home prices have pushed younger buyers to delay homeownership. That piece is available at https://www.washingtonpost.com/economy/2024/02/12/first-time-homebuyers-age-millennials/.

Another supporting article from Bloomberg explores the impact of mortgage‑rate volatility on first‑time buyers, with an emphasis on how the Federal Reserve’s policy actions have influenced loan costs. The Bloomberg story can be accessed at https://www.bloomberg.com/news/articles/2024-02-11/mortgage-rates-higher-but-buyer-hope-holds-strong.

Broader Market Dynamics

While the median age has risen, the number of first‑time homebuyers remains relatively stable at a year‑on‑year level. The NAR survey indicates that 46% of first‑time buyers are female, a figure that has stayed consistent over the past five years. Additionally, 18% of first‑time buyers reported using a VA or FHA loan, underscoring the importance of government‑backed financing in facilitating entry into the housing market.

Regional differences are stark. In the South, the median age of first‑time buyers sits at 38, slightly below the national average, whereas in the West the median age climbs to 42. Housing‑market conditions—inventory levels, price appreciation, and local employment rates—continue to influence these regional variations.

Implications for Policymakers

The shift toward older first‑time buyers raises questions about the effectiveness of current housing‑affordability policies. Critics argue that incentives such as down‑payment assistance, tax credits, and public‑housing subsidies should be broadened to accommodate the financial realities of younger prospective buyers. Conversely, some policy advocates suggest that strengthening existing first‑time‑buyer programs could be a more efficient use of public resources, given the apparent preference of older buyers for larger, more expensive homes.

Conclusion

The NAR’s latest survey underscores a significant transformation in the home‑buying landscape: first‑time buyers are buying later, at older ages, and often in more suburban contexts. While the industry continues to adapt—by offering homes that meet the needs of a more mature demographic—policy responses and lender strategies will need to evolve if the market is to remain inclusive for buyers of all ages. The 40‑year median age may reflect current economic realities, but it also serves as a call to examine whether the U.S. housing system can accommodate the dreams of a younger generation that is still eager to transition from renting to owning.