The median age of a first-time homebuyer climbed to 38 years old, a whopping three years older than the median first-time homebuyers in July 2023. This significant increase underscores the impact of rising housing costs, showing that many individuals are delaying homeownership due to financial constraints.
With limited real estate inventory, more expensive homes, and wealthy competitors vying for the same sparse inventory, people are waiting significantly longer to buy their first home, according to the National Association of Realtors' report. This competitive market is forcing prospective buyers to remain on the sidelines for extended periods.
The average first-time homebuyer was in their late 20s during the 1980s. The report highlights that the current median age of 38 years old is indicative of the pressures faced in today’s market, drawing a clear contrast with past decades.
The percentage of first-time homebuyers has decreased from 32% to 24% in just one year, driven by high home prices and increased competition. As the average U.S. starter home price now stands at $412,300, affordability remains a significant barrier for many.
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