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Only 36% of 35-Year-Olds Own a Home: A Stark Gap in U.S. Home-Ownership Rates

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  Published in House and Home on Friday, December 26th 2025 at 15:55 GMT by Investopedia

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You Just Turned 35 and Don’t Own a Home Yet? See How U.S. Adults Compare

Turning 35 and still living in a rented apartment is a surprisingly common scenario for many Americans, according to a new Investopedia analysis that digs into the latest Census Bureau data, real‑estate reports, and consumer‑finance research. The article, which draws on links to the U.S. Census Bureau’s American Community Survey, the National Association of Realtors (NAR), and the Mortgage Bankers Association (MBA), paints a detailed picture of where 35‑year‑olds stand in the home‑ownership race and how they stack up against other age groups.

Home‑Ownership Rates at 35

The headline takeaway is that only 36 % of adults aged 35 and older own a home, a figure that is markedly lower than the national average of 65 % for all adults. For context, the same Census data shows that adults aged 55–64 have a home‑ownership rate of 72 %, and those 65 and older are at 74 %. The gap widens even further when you look at the 30‑34 age cohort: just 30 % own a home, while 35‑39‑year‑olds see a slightly higher but still modest 38 %.

These numbers echo findings from the NAR’s “Mortgage Market Report,” which notes that first‑time buyers are now, on average, 2.7 years older than they were a decade ago—a shift driven by rising home prices, tighter lending standards, and changing life‑stage priorities. The MBA’s “Consumer Credit Trends” report further corroborates that younger adults are increasingly burdened with student‑loan debt and credit‑card balances that impede their ability to save for a down payment.

Income, Savings, and Debt: The Financial Divide

Investopedia’s piece dives into the financial habits that differentiate 35‑year‑olds who own from those who don’t. Key metrics include:

The article cites a 2023 report from the Federal Reserve’s “Survey of Consumer Finances,” which found that home‑owners in the 35‑year‑old bracket typically have higher savings rates because their monthly mortgage payment is an “asset‑generating” expense that builds equity, whereas renters see their rent payments as purely a cost.

Moreover, the piece explains that renters tend to live in higher‑cost areas—often cities with booming tech industries—where the ratio of rent to income is high. A link to the Bureau of Labor Statistics’ “Consumer Expenditure Survey” shows that renters in the top quartile of cities pay 50 % of their gross income on rent, compared with 27 % for owners in the same income bracket.

The Role of Student Debt

Student‑loan debt is a recurring theme throughout the article. According to data from the Department of Education’s “Loan Servicing Dashboard,” the average student‑loan balance for 35‑year‑olds who are renters is $34,000—over twice the $15,000 average for owners. The Investopedia writers note that this debt burdens renters with less disposable income to save for a down payment or invest in retirement.

The piece links to an NAR white paper that recommends a “debt‑first” strategy: pay off high‑interest student loans before attempting to purchase a home. It also highlights programs such as the Department of Veterans Affairs’ VA loan program, which can waive down payments and reduce debt‑to‑income ratios for eligible veterans—an option many 35‑year‑olds are not aware of.

The Impact of the Pandemic

The article acknowledges that the COVID‑19 pandemic exacerbated the housing‑ownership gap. While the NAR’s “Market Pulse” reported a surge in demand for suburban homes in 2021, inventory remained tight, pushing prices upward. Rent‑to‑income ratios continued to climb, especially in urban cores, leading many 35‑year‑olds to postpone home buying. A link to the “Urban Institute’s” research on post‑pandemic housing trends underscores this point, noting that the supply‑demand mismatch is still palpable in many high‑cost metros.

What 35‑Year‑Olds Can Do

Investopedia concludes with practical steps for those in the 35‑year‑old bracket who aspire to own a home sooner:

1. Track and Reduce Debt: Prioritize paying down high‑interest debt, especially credit cards and student loans. Use the “Debt Snowball” method outlined in the CFP Board’s “Debt‑Management Guide.”
2. Boost Savings: Aim for a 12‑month emergency fund and a dedicated “down‑payment” savings account. The article links to a “Money Under 30” savings calculator to help set realistic targets.
3. Explore First‑Time Buyer Programs: Many states offer grants and tax credits for first‑time homebuyers. The article links to the U.S. Department of Housing and Urban Development (HUD) website for a list of available programs.
4. Consider Location Flexibility: Expanding search to secondary markets can yield lower price‑to‑income ratios. The Investopedia piece references the U.S. Census Bureau’s “Regional Housing Affordability Index” as a useful tool.
5. Leverage Employer‑Sponsored Programs: Some employers offer “Home‑Buying Assistance” or “Mortgage‑Assistance Programs.” Check your benefits portal or HR department for details.

Bottom Line

For many 35‑year‑olds, the dream of owning a home still feels out of reach. Investopedia’s analysis shows that while the data paints a stark picture, the financial hurdles are largely surmountable with strategic planning, disciplined saving, and an awareness of available assistance programs. By understanding the gaps in income, savings, and debt that differentiate owners from renters—and by taking concrete steps to close those gaps—today’s 35‑year‑olds can move closer to the home‑ownership milestone that many of their older peers have already achieved.