The average age of first-time homebuyers in the U.S. has surged to 38, reflecting major shifts in the housing market and broader economic pressures. Compared to the late 20s age range common in the 1980s, today’s first-time buyers are much older, and the overall share of first-time buyers has dropped from 32% to 24% in just the past year. The increasing age can be attributed to several complex factors, including fierce competition for housing, higher property prices, and affordability issues that make entering the market challenging for many younger buyers.

The Biggest Issue of the Housing Market



One major obstacle is the current housing shortage, which limits affordable home options and fuels competition, particularly against wealthier or cash-heavy buyers who can offer more or close quickly. This competitive environment often drives up prices and pushes traditional first-time buyers out of the running. In addition, the rising cost of rent exacerbates the difficulty of saving for a down payment. With rents at all-time highs, prospective buyers find it harder to set aside enough money to make the leap from renting to buying.

The Winner’s in Today’s Market

The housing market today is heavily influenced by repeat buyers who are able to leverage substantial home equity from previous properties. Many repeat buyers have the financial advantage of built-up equity—some even purchasing homes outright with cash, an approach now at an all-time high, with 26% of buyers paying in cash. According to CoreLogic, U.S. homeowners held over $17.6 trillion in home equity by the second quarter of 2024, a rise of $1.3 trillion from the previous year, which further highlights the advantage of established homeowners in today’s competitive market.

Lifestyle Shifts Driving Longer Rent Periods

Student loan debt and overall economic uncertainties add further complexity, while lifestyle priorities are also shifting. Many Millennials and Gen Z buyers are balancing career growth, financial stability, and other life goals, which can lead to putting off homeownership in favor of building savings, paying down debt, or maintaining flexibility for potential moves.

This delay impacts what first-time buyers seek when they do enter the market. Many older first-time buyers are looking for homes with long-term potential—those with flexible spaces for remote work or growing families—and prioritize location, amenities, and resale value more carefully.

 

If you’re considering buying a home, the BELL Home Team is here to navigate the challenges and opportunities unique to this market. Reach out today for a personalized, no-obligation buyer consultation, and let’s find the best path to your dream home!