If it feels like first-time buyers are getting older, you’re right.
The 2025 Profile of Home Buyers and Sellers from the National Association of REALTORS® found that the median age of a first-time home buyer is now 40 years old—the highest ever recorded.
That’s up from 38 last year and far beyond the late 20s typical in the 1980s. What’s behind the shift? Let’s unpack it.
Buying a Home Really Is Harder
Only 21% of all buyers in 2025 were first-timers, the smallest share ever. Historically, it’s been closer to 40%.
Today’s first-time buyers face steeper odds:
- Home prices and mortgage rates remain high
- Cash-ready repeat buyers dominate bidding
- Student loans and rent slow savings
It’s no surprise it takes longer—and more persistence—to reach that first closing.
The Housing Market’s Growing Divide
While first-timers struggle to enter, repeat buyers are thriving. They’re older, have more equity, and often skip financing altogether.
- Median repeat buyer age: 62, a record high
- 30% paid all cash
- Typical down payment: 23% (versus 10% for first-timers)
That level of equity makes it tough for newcomers to compete, especially when homes still sell for about 99% of the asking price.
Why It’s Tough to Break In
Affordability remains the biggest barrier. Here’s what’s standing in the way:
- Mortgage rates: Averaging 6.69%, keeping payments steep
- Inventory: Fewer entry-level homes for sale
- Savings pressure: 59% of buyers used personal savings; 26% drew from 401(k)s or stocks to make it happen
All told, it’s no wonder the average first-time buyer is now 40—it simply takes longer to get financially ready.
What Gives Repeat Buyers the Edge
After more than a decade of ownership, repeat buyers have equity to spend and experience to rely on.
They’ve owned their homes for an average of 11 years, cashing out at record highs and reinvesting with confidence. They know how to move fast in multiple-offer situations and can often skip financing hurdles entirely.
How First-Time Buyers Can Still Win
Despite the challenges, there are smart ways to get ahead:
- Down-payment assistance: Local and state programs can help cover upfront costs.
- Creative financing: Ask your lender about 2-1 buydowns or temporary rate reductions.
- New construction: Builders are offering incentives and rate buydowns.
- Multi-generational options: 14% of buyers purchased this way in 2025 to share costs.
- Work with an experienced agent: 88% of buyers used a pro to find and negotiate their home successfully.
The Bottom Line
Yes, the average first-time buyer in 2025 is older—but also more prepared, more stable, and more strategic. If you’re planning to buy soon, start the conversation early. We’ll walk through local programs, financing options, and a strategy to turn “someday” into sold.