Homebuying Age in the US: Why Americans Are Buying Homes Later in Life

The typical first-time homebuyer age in the United States was 35 years old in 2025, according to a recent housing market report from real estate brokerage Redfin. The figure represents a slight decrease from 36 years old in 2024 and is also lower than the recent peak age of 38 recorded in 2018.

While the shift may appear small, it highlights how changes in affordability, mortgage rates, and housing supply can influence when people are able to purchase their first home.

The report also showed that repeat homebuyers had a median age of 47 in 2025, down from 52 the previous year, which was the highest level recorded in about 25 years.

Why First-Time Homebuyers Tend to Be Younger

Younger buyers often face more challenges when entering the housing market because they usually do not have home equity from a previous property sale.

Instead, first-time buyers typically rely on their income, savings, and financing options to purchase a home. This makes them more sensitive to changes in housing affordability, mortgage rates, and down payment requirements.

When affordability improves slightly, even modestly, it can allow more younger buyers to qualify for mortgages and enter the housing market.

This helps explain why the median age of first-time homebuyers declined slightly between 2024 and 2025.

Housing Costs Still Affect Younger Buyers

Despite the recent decline in median age, buying a home has become more difficult for younger generations over the past few decades.

Housing prices have increased significantly in many areas of the United States, especially during the housing boom that occurred during the COVID-19 pandemic. Strong demand and limited housing supply pushed prices upward, making it harder for many households to purchase homes.

At the same time, mortgage rates also increased sharply after 2021, adding another challenge for first-time buyers.

Although wages have increased in recent years, income growth has generally not kept pace with the rise in housing prices, which continues to affect affordability.

Mortgage Rates and Inventory Helped Some Buyers

A small improvement in housing affordability helped some younger buyers enter the market in 2025.

The average rate for a 30-year fixed mortgage was about 6.6% in 2025, slightly lower than 6.72% in 2024. While the difference may seem small, mortgage rates can significantly affect monthly payments.

At the same time, housing inventory improved in several markets, giving buyers more options and slightly less competition compared with previous years.

These factors combined allowed a modest number of younger households to purchase homes, which contributed to the small drop in the median age of first-time buyers.

Homeownership Among Millennials and Gen Z

The report also showed that homeownership rates among younger generations continued to rise.

• Gen Z homeownership rate: 27.1%, up from 26.1% the previous year
• Millennial homeownership rate: 55.4%, up from 54.9%

Millennials remain the largest group of homebuyers in the United States, while Gen Z is gradually entering the housing market as more people in that generation reach their late twenties and early thirties.

However, many younger buyers still face challenges related to saving for down payments and qualifying for mortgages.

Family Support Helps Many First-Time Buyers

Financial help from family members has become an important factor for many young homebuyers.

According to a Redfin survey conducted in late 2025:

• 19.6% of millennial homebuyers received a cash gift from family to help with their down payment.
• 14.8% of Gen Z buyers also received family financial assistance.

In addition to family support, some buyers are using other financial sources to fund their down payments.

For example:

• Around 20% of buyers sold stock investments to help cover their purchase.
• About 13% withdrew money from retirement savings earlier than planned.

These strategies show how buyers are finding alternative ways to overcome rising housing costs.

Repeat Homebuyers Also Became Younger

The report also found that repeat homebuyers were younger in 2025 compared with the previous year.

The median age of repeat buyers dropped from 52 to 47, suggesting that many homeowners who delayed moving during 2024 finally decided to buy or sell homes in 2025.

Several factors contributed to this trend.

Some homeowners postponed moving during 2024 because mortgage rates were higher. When rates declined slightly in 2025, these buyers returned to the market.

Others may have simply become more comfortable with mortgage rates above 6%, deciding not to wait longer before making a move.

Different Data Shows Different Ages

Redfin also noted that its findings differ from numbers reported by the National Association of Realtors (NAR).

According to NAR’s research:

• The median age of first-time buyers is about 40
• The median age of repeat buyers is about 62

Redfin’s analysis shows younger averages, partly due to differences in data collection methods and how homebuyer groups are measured.

Despite these differences, both studies point to the same long-term trend.

Americans Are Buying Homes Later in Life

Across the housing market, Americans are generally buying homes later in life than they did in previous decades.

Higher housing costs, larger student loan balances, and stricter lending standards have all played a role in delaying homeownership for many people.

Younger generations are often spending more time saving for down payments or improving their credit before entering the market.

Even with these challenges, the recent data suggests that more millennials and Gen Z buyers are gradually becoming homeowners.

Outlook for First-Time Buyers

Housing affordability is expected to improve slightly in many U.S. markets during the coming year as inventory increases and income growth continues.

However, housing supply remains limited in many areas, which could keep home prices elevated.

For first-time buyers, the path to homeownership may still require careful financial planning, saving, and in some cases assistance from family members.

Even so, the data suggests that younger generations are continuing to enter the housing market, even as affordability challenges remain. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.