America’s residential real estate market has hit a series of unfortunate new records this year, with the age of the median first-time homebuyer skyrocketing. According to new data released by the National Association of Realtors (NAR) as part of their annual profile of homebuyers and home sellers, the typical new homeowner is now officially 40 years old. This marks a significant increase from 38 years old in 2024 and 33 years old in 2020, setting a new high watermark for the U.S. real estate market.
In a new low since NAR began tracking this data in 1981, first-time buyers made up just 21% of all U.S. home purchases in 2025. These buyers earned a median income of $94,400, reflecting a slight decline from last year’s report. Many first-time buyers have had to navigate economic uncertainty, persistently high lending rates, and tight housing supplies—factors that have driven prices up. Additionally, most have needed to save for a down payment of at least 10%.
Adding to the challenges, only 24% of surveyed homebuyers had children, the lowest proportion ever recorded. Furthermore, 21% of respondents cited childcare expenses as a barrier to saving for a down payment. The unsettling trend continues with the median age of repeat buyers reaching 62 years old and the median age of all homebuyers climbing to 59 years—both new benchmarks in NAR’s data.
Tighter housing supplies are also making it harder for new buyers to enter the market. Sellers in 2025 typically owned their homes for about 11 years before putting them on the market. Meanwhile, cash transactions have gained prominence, with cash-rich buyers accounting for a record 26% of home sales this year, often bypassing traditional financing altogether.
Despite these sobering statistics, there is a glimmer of hope for young homebuyers. Recent developments in the housing market suggest improving conditions. Average 30-year mortgage rates recently fell to a one-year low of 6.17%, according to Realtor.com. Additionally, home price growth across the country is slowing, with some Southern and Western markets even experiencing actual price declines.
Continued improvement in buying conditions could play a crucial role in narrowing the nation’s growing generational wealth gap. With more accessible housing opportunities, young people may have a better chance at achieving the American dream before they grow gray.
https://nypost.com/2025/11/05/real-estate/median-age-of-first-time-us-home-buyer-hits-shocking-new-high-as-dire-state-of-real-estate-market-is-laid-bare/
