Median Age of First-Time Homebuyers Reaches Record High in 2025

According to a recent report from the National Association of Realtors (NAR), the typical age for first-time homebuyers is expected to hit an unprecedented high in 2025. The median age of these buyers has now climbed to 40 years.

In 2024, it was reported at 38 years. The NAR’s study was made public on Tuesday. Currently, the median sales price for homes is approximately $410,800, which has surged by over 25% since 2019. In contrast, the average interest rate for a 30-year mortgage has roughly doubled since late 2021.

To give some perspective, first-time buyers had a median age of 33 in 2021. The first study done by NAR in 1981 noted that this age was only 29.

Last year, first-time buyers constituted a mere 21% of the housing market, marking the lowest percentage since NAR began its data collection efforts. The NAR cautioned that if Americans postpone homeownership until age 40 rather than securing a home at 30, they might miss out on about $150,000 in equity from a typical starter home.

“The historically low share of first-time buyers underscores the troubling reality of a housing market that lacks affordable options,” remarked Jessica Lautz, NAR’s Deputy Chief Economist and Vice President of Research. She noted that the percentage of new buyers has halved since 2007, just before the Great Recession, resulting in significant repercussions for the housing market.

“Today’s first-time homebuyers are likely to accumulate less equity and, consequently, may not move as frequently throughout their lives,” Lautz added.

NAR’s survey gathered responses from 6,103 individuals who purchased a home as their primary residence between July 2024 and June 2025. Housing affordability has increasingly become a priority for the current administration, with just 28% of homes on the market being affordable for the average household.

President Trump has called for the Federal Reserve to implement aggressive rate cuts to make borrowing more affordable and stimulate the economy. Recently, the Federal Reserve announced a second interest rate cut this year, bringing the target range down to between 3.75% and 4.00%. However, Chairman Jerome Powell mentioned that another cut in December isn’t a certainty.

While mortgage rates are influenced by the Fed’s actions, analysts have cautioned that any further modest rate reductions may not significantly affect borrowing costs.

Treasury Secretary Scott Bessent is advocating for lower interest rates, highlighting that the administration might declare a national housing emergency in September. Additionally, there have been discussions about eliminating capital gains tax on home sales.