(NewsNation) — Affordability pressures are shutting young people out of the housing market, and the median age of first-time homebuyers is now 40, a record high.
That’s the oldest age in more than four decades of data and up sharply from 33 in 2021, according to the National Association of Realtors. In 1981, the median age of first-time buyers in the U.S. was 29.
They aren’t just older — first-time buyers also make up a smaller share of the market than ever, just 21%, the trade group said in a new report. Before 2008, that figure typically hovered around 40%.
“The implications for the housing market are staggering,” said Jessica Lautz, NAR deputy chief economist and vice president of research. “Today’s first-time buyers are building less housing wealth and will likely have fewer moves over a lifetime as a result.”
Lautz called the housing market “a tale of two cities,” where buyers with significant housing equity are making larger down payments and all-cash offers, while first-time buyers continue to struggle to enter the market.
That divide appears to be fueling young people’s skepticism about the American dream: fewer than 4 in 10 adults under 30 believe it’s still attainable, compared with nearly 70% of those over 65, according to Pew Research.
Losing a decade of homeownership, buying at 40 instead of 30, can mean missing out on roughly $150,000 in equity on a typical starter home, NAR warned.
“We must focus on policies that address the root cause of the affordability crisis: inadequate housing supply,” said Shannon McGahn, NAR executive vice president and chief advocacy officer.
Other factors, like high rents and student loan debt, have also made saving for a down payment increasingly difficult, the report noted. The median down payment rose to 19% in 2025, the highest level in decades.
All-cash home purchases have also reached an all-time high, averaging 26% over the last year — a trend that underscores the strength of repeat buyers, who can leverage equity from a previous sale to bypass elevated mortgage rates.
Personal savings were the most common source of down payment funds among first-time buyers, with 59% relying on savings. More than 1 in 5, however, received help from relatives or friends through a gift or loan, according to the report.
Another sign of the times: The share of buyers with children under 18 has fallen to a historic low — just 24% of recent buyers, compared with 58% in 1985.
NAR’s latest profile of buyers and sellers report is based on survey data covering transactions between July 2024 and June 2025.
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