The New Face of First-Time Homebuyers

If it feels like people are buying their first home later in life, you’re not imagining it. According to the 2025 Profile of Home Buyers and Sellers from the National Association of REALTORS®, the median age of first-time home buyers has hit a record 40 years old. That’s a big jump from the 1980s, when most first-timers were in their late 20s.

But what’s driving this dramatic shift? From rising mortgage rates to sky-high home prices and shrinking affordability, let’s unpack what’s really going on — and how you can still make your homeownership dream happen.

Why It’s Taking Longer to Buy a First Home

Today’s first-time buyers face a very different reality than their parents did. According to NAR, first-time buyers make up just 21% of home purchases in 2025, the lowest share ever recorded. Historically, that number hovered closer to 40%.

So why are fewer people managing to buy their first home — and doing so much later in life? The answer lies in a combination of economic, financial, and generational factors.

The Housing Market’s Growing Divide

One of the biggest changes in 2025’s real estate market is the widening gap between first-time buyers and repeat buyers.

Repeat buyers — often older, more financially established homeowners — dominate today’s market. They’ve built equity over years of ownership, which gives them a massive leg up. Here’s what the data shows:

• The median age of repeat buyers is now 62, another all-time high.
• Nearly 30% of repeat buyers paid all cash, compared to just 8% of first-time buyers.
• Repeat buyers put down 23%, while first-timers averaged 10% — the highest since 1989.

When you combine equity, cash, and experience, it’s easy to see why younger or first-time buyers struggle to compete. In 2025, buyers typically paid 99% of the asking price, leaving little room for negotiation or low offers.

Affordability Challenges: Why It’s So Hard to Break In

Let’s face it — buying a home has never been more expensive. Several factors are working against new buyers:

• Mortgage rates remain high. With an average rate of 6.69%, monthly payments are steeper than they were during the pandemic’s low-rate years.
• Starter homes are scarce. Builders and sellers are prioritizing higher-end listings, leaving fewer affordable options.
• Saving is tough. Rent and student debt continue to eat into potential down payments. In 2025, 59% of first-time buyers used personal savings, while 26% dipped into assets like 401(k)s or stocks to make it work.

When you add it all up, it’s no surprise that buyers are waiting longer to save enough for their first home.

Why Repeat Buyers Have the Upper Hand

Repeat buyers are benefiting from years of homeownership — and equity is their secret weapon. On average, they’ve owned their homes for 11 years before selling, giving them a cushion of appreciation to roll into their next property.

Many use that equity to pay cash or put down larger down payments, allowing them to move quickly in a competitive market. They’ve been through the process before, so they can navigate bidding wars and financing hurdles with confidence.

In short: experience and equity are a powerful combination in today’s housing landscape.

How First-Time Buyers Can Still Win in 2025

Feeling discouraged? Don’t be. There are real strategies to level the playing field and make your first purchase possible:

1. Look into down payment assistance. Many state and local programs offer grants or forgivable loans for first-time buyers.
2. Ask your lender about creative financing. Options like 2-1 buydowns or temporary rate reductions can lower your initial monthly payments.
3. Consider new construction. Builders are offering incentives, like rate buydowns and closing cost credits, to attract buyers.
4. Explore multi-generational living. About 14% of buyers purchased multi-gen homes in 2025 to share costs or care for family members.
5. Work with a trusted agent. In 2025, 88% of buyers used a real estate agent, and most said it made all the difference in finding and negotiating the right home.

Remember — the goal isn’t just to buy a house. It’s to buy the right one at the right time, with a strategy that fits your lifestyle and budget.

The Bottom Line

Buying your first home in 2025 may take more time, planning, and patience — but it’s still absolutely possible.

Yes, the average first-time buyer is older, but that also means more prepared, financially stable, and strategic. If you’re planning to buy in the next year or two, start the process early. The right preparation and guidance can help you turn “someday” into “sold.”

FAQs

1. Why is the median age of first-time homebuyers rising?
Because of higher home prices, student debt, and tighter lending standards, it takes longer for buyers to save enough for a down payment and qualify for a mortgage.

2. What’s the current median age of first-time homebuyers in 2025?
It’s 40 years old — the highest on record according to the National Association of REALTORS®.

3. How can I compete with cash buyers?
Get pre-approved, explore down payment assistance, and consider properties that need light cosmetic work (fewer cash investors target these).

4. Are mortgage rates expected to drop in 2025?
While rates have been fluctuating around 6–7%, slight decreases are possible later in the year depending on inflation and Fed policy.

5. What’s the best way to get started as a first-time buyer?
Talk to a local lender and agent early. They can help you assess your credit, find loan programs, and outline a realistic timeline to get you from dreaming to closing.