T
he youngest U.S. homebuyers are no longer in their 20s, as a challenging market has pushed first-time house hunting into the realm of people nearing 40. "No one in their young 20s is buying homes," said Ricky Voong, a real estate agent in Pennsylvania, who's noticed his clients getting older lately.
Voong is struggling to find affordable properties for Hahmie Lee, 37, and her husband David Matozzo, 31, despite their joint incomes. The couple has been searching for two years, but houses in their price range are scarce. "There is a lot of competition," Lee said, adding that they've been outbid many times.
Industry experts fear the Trump administration's escalating trade war will derail recent progress on affordability. Census data shows it increasingly takes a six-figure income to become a homeowner. The median age of first-time homebuyers hit 38 last year, up from 35 in 2023 and almost a decade older than in the 1980s.
Homeownership rates for Gen Z and millennials stalled in 2024, while older generations continued to make gains despite high costs. "We typically think of a first-time homebuyer as somebody in their early 30s, not late 30s," said Daryl Fairweather, chief economist at Redfin.
Many younger buyers already purchased during the pandemic when mortgage rates were lower. However, market conditions are keeping many young adults locked into properties they've outgrown, often as reluctant renters. Lee and Matozzo are ready to leave their two-bedroom townhome but can't find an affordable property that suits their needs.
Recent economic uncertainty has spooked homebuyers, with nearly 1 in 4 Americans canceling plans to make a major purchase due to new trade policies. The Federal Reserve has signaled its resolve to hold off on further interest rate cuts until inflation risks grow clearer, ensuring high borrowing costs will persist.
Buying a first home later in life can have long-term financial impacts, said Fairweather, noting that 38-year-old buyers will still be paying off a 30-year mortgage well into retirement. She recommends prioritizing contributions to tax-advantaged retirement savings accounts and treating them like rent payments.
