The housing affordability crisis is so bad that the average American first-time homebuyer is 40 years old | Fortune

"The American dream of homeownership, long a symbol of stability, achievement, and upward mobility, is facing unprecedented challenges as the median age of the average first-time homebuyer in the United States has soared to 40 years old, according to newly released data from the National Association of Realtors (NAR). A year ago, the median age was 38 years old, and that's up from 36 in 2022, 33 in 2020 and 28 in 1991. "It's kind of a shocking number," said Jessica Lautz, deputy chief economist and vice president of research at NAR."

"This age milestone marks an era where the affordability crisis is fundamentally reshaping the housing landscape and delaying access to the benefits of homeownership for millions of Americans. As ResiClub editor Lance Lambert contextualized it in a statement to Fortune, this means the first-time homebuyer in 2025 is "just as close in time to the age when they can begin early Social Security withdrawals (age 62) as they are to their high school graduation (age 18).""

"The NAR's 2025 Profile of Home Buyers and Sellers, which surveyed recent home transactions between July 2024 and June 2025, also revealed that first-time buyers now comprise just 21% of all home purchases-a historic low. "The historically low share of first-time buyers underscores the real-world consequences of a housing market starved for affordable inventory," Lautz said."

"This steep decline-a contraction of 50% since 2007-has significant ripple effects: not only does it delay or deny wealth accumulation for families, but it also means lost opportunities. NAR estimates a 10-year delay in homeownership could mean losing about $150,000 in equity on a typical starter home over a lifetime."

Median age of first-time homebuyers in the U.S. rose to 40 in 2025, up from 38 a year earlier and 28 in 1991. First-time buyers now account for just 21% of purchases, a historic low and a 50% contraction since 2007. Affordability pressures have pushed typical down payments to 10%, matching highs not seen since 1989. Delays in homeownership impede wealth accumulation and opportunity; a ten-year postponement could cost roughly $150,000 in equity on a starter home over a lifetime. The shift places first-time buying age closer to Social Security eligibility than early adulthood.

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