The average age of first-time homebuyers is increasing. It is important to note that a first-time buyer does not solely refer to individuals purchasing their first property. Rather, the term encompasses anyone who has not owned real estate within the past three years. These buyers remain eligible for the same interest rate incentives and reduced down payment opportunities as those purchasing property for the first time.
The proportion of first-time homebuyers in the United States fell to a record low of 21% over the past year, while their median age climbed to 40. This is a significant change from the period before 2008, when about 40% of buyers were first-time, usually in their late twenties.
The report revealed an increasing disparity in age between repeat buyers, whose median age has hit a record 62.
Repeat buyers usually made larger down payments (with a median of 23%) and were more likely to pay entirely in cash (30%). In contrast, first-time buyers put down a median of 10%, equaling the highest rate recorded since 1989.
For their down payment, 59% of first-time buyers used personal savings, 26% used financial assets, and 22% relied on gifts or loans from family or friends.
As affordability keeps first-time buyers out and older, equity-rich buyers take over, homeownership is increasingly out of reach for newcomers. The next challenge for the industry is to open opportunities for future buyers.
Upcoming initiatives are being planned, including additional rate reductions by the Federal Reserve. There is optimism that 2026 will bring expanded opportunities for affordable housing.
Recent Comments