M
edian age of first‑time U.S. homebuyers has risen to 40 years in 2025, the highest ever recorded by the National Association of Realtors (NAR). The figure climbed from 38 in 2024 and 33 in 2020. In the same year, first‑timers accounted for only 21 % of all home sales, the lowest share since NAR began tracking the metric in 1981. Their median household income fell slightly to $94,400.

    These buyers face a confluence of challenges: persistent inflation, elevated mortgage rates, a constrained supply that drives prices up, and the need to save at least a 10 % down payment. Only 24 % of purchasers had children, and 21 % cited childcare costs as a barrier to saving. The median age of repeat buyers reached 62, while the overall median age of all buyers hit 59. Sellers, on average, had owned their homes for 11 years before listing.

    Cash transactions dominated the market, with 26 % of sales completed without traditional financing—a record high. Despite these bleak indicators, signs of improvement appear. The average 30‑year fixed‑rate mortgage dipped to a one‑year low of 6.17 % last week, according to Realtor.com. National price growth has slowed, and some Southern and Western regions have seen actual declines. Better buying conditions could help narrow the widening generational wealth gap and enable younger buyers to achieve homeownership before retirement.