F
irst-time homebuyers in the US are facing unprecedented challenges. The median age for first-time buyers has reached an all-time high of 38, up from 35 just three years ago. This shift is largely due to a perfect storm of rising prices, dwindling housing supply, and intense competition from wealthier buyers.

    The share of first-time buyers has plummeted to 24%, the lowest since 1981. To succeed in today's market, buyers need significant financial resources to cover down payments. "The first-time homebuyer who can enter today's market is older, has a higher income, and is wealthier," says Jessica Lautz, deputy chief economist at the National Association of Realtors.

    A staggering housing shortage of 4 million homes has driven up prices, making it difficult for younger adults to save and qualify for mortgages. While some construction gains have been made, the market remains under pressure. The price of a typical starter home rose to $250,000 in August, up from $240,000 the previous year.

    Repeat buyers who can tap into their existing home equity are dominating the market, often sidestepping mortgage struggles altogether. About 26% of buyers this year paid for their homes in cash, an all-time high. This trend has left younger adults watching from the sidelines as baby boomers and retirees solidify their status as top players.

    Renters are also feeling the squeeze, with rent costs outpacing wage growth by a significant margin. Over half of renter households spend more than 30% of their income on housing, making it difficult to save for down payments or pay off debts. As one economist notes, "We're seeing renters staying renters for longer because affordability has been so squeezed."

    If this trend continues, the American dream of homeownership may become a relic of the past for younger generations. Jonathan Scott from HGTV's "Property Brothers" warns that within 20 years, no young person will be able to afford to purchase a home.