In November, the National Association of Realtors reported that the age of first-time buyers has incrementally increased since 2010, when the typical age was 30, to hit a record high of 40. In the meantime, the median age of repeat buyers, those who already own a home and are buying their next home — also hit a record high of 62.
Redfin researchers used a different methodology and found that while the typical home buyer is older than in the past, their average age for a first-time home purchase is 35.
The broader trend of people entering the market at a later age is real no matter what the actual number is, said Steve Combs, area manager of Cornerstone Home Lending in California, Maryland.
“The rising age of buyers really reflects affordability and timing,” Combs said. “Higher home prices and higher interest rates over the past few years have caused many buyers to enter the market later than they historically did. But demand for homeownership remains strong — people are just taking a little longer to get there.”
Buyers in different age ranges have different priorities and financial considerations that influence their decisions, analysts said.
First-time buyers: Challenges, opportunities
The percentage of home buyers purchasing a home for the first time dropped to 21 percent in 2025, according to NAR, compared with about 40 percent before the Great Recession. Factors in that delay include high home prices, a lack of affordable homes, relatively high mortgage rates and student loan debt.
Another factor is the difficulty saving money for a down payment. First-time home buyers typically make a down payment of 6 percent to 10 percent of the purchase price, but many believe a 20 percent down payment is required.
“From a financial planning perspective, we recommend a 20 percent down payment,” said Isabel Barrow, executive director of financial planning for Edelman Financial Engines, a financial planning company in Alexandria, Virginia. “But on the median home price of $450,000, that’s $90,000. Young people paying rent after college, along with car payment and student loans, really struggle to save that money, especially when they need to save money in a retirement plan, too.”
Barrow recommends a 20 percent down payment — or, at the bare minimum, 10 percent — because it provides a cushion if a homeowner needs to sell their home quickly because of a job change, a divorce or another unexpected event.
Combs acknowledged that first-time buyers worry about their credit scores, down-payment savings and other issues, but he said that “the biggest obstacle many buyers face isn’t a lack of financing options — it’s the perception that certain hurdles can’t be overcome. With the right planning and loan structure, many of these challenges can be addressed sooner than buyers expect.”
Family and friends can also help. Close to one-fourth of first-time buyers (22 percent) received gifts or loans from family or friends, according to the NAR.
“We’re seeing the impact now of a huge transfer of wealth from grandparents and parents to their kids and grandkids,” said Don Denton, an agent with Coldwell Banker Realty in Washington. “My first question for every buyer is about their resources, so if they’re getting financial help from their families, that means I get the relatives involved in the transaction.”
Depending on whether they’re familiar with the D.C. market, the parents and grandparents may be shocked at the home prices and, in some cases, continued competition for desirable homes, Denton said.
“Today’s first-time buyers are more fiscally conservative than previous generations,” he said. “They’re more flexible on location and willing to move to a location they might not have considered a decade ago in order to save money. They understand the long-term value of real estate.”
First-time buyers without family help are more likely to make a down payment of 5 percent or 10 percent, Denton said.
“They’re looking for a way into the housing market, so they’re still open to condos to start accumulating equity and build wealth,” he said.
Barrow recommends that first-time buyers be realistic about their budget and time frame for purchasing a home.
“First, they need to save 10 percent of their income for retirement, then they need to save for an emergency fund and cash reserves,” Barrow said. “They should put those funds in a high-interest savings account or a high-interest CD and not dip into it for other goals such as their wedding or a vacation.”
Combs said the first-time home buyers he sees usually manage to have savings despite competing priorities.
“They’re typically conscious of their monthly housing payment and very conscious about their income and job security,” he said.
While they may be entering the market later, today’s first-time buyers often have a stronger financial footing than those in the past, Combs said.
“Buying a home is important to get in the door and build equity, which makes it easier to buy the next house,” Barrow said. “It’s forced savings to pay your mortgage, plus your home value may rise.”
Combs noted that the median household net worth of U.S. homeowners is about 40 times as high as the net worth of renters, according to Federal Reserve data.
Still, Barrow said, renting can be a valid decision as long as people save money and fund their retirement.
Older buyers: Shifting priorities
The older buyers Denton sees are sometimes grandparents moving near their adult children to help care for their grandchildren.
“I also work with people nearing retirement age who want to retire in the city rather than move to Florida or South Carolina,” Denton said. “They’re not looking for a car-centric lifestyle — they want major medical systems and hospitals an Uber ride away, proximity to public transportation and to be near family and friends.”
Those buyers typically have built up a lot of equity and are willing to pay cash for their next home or at least make a large down payment, he said.
Buyers who are in their late 50s or early 60s should consider their retirement goals when they make home-buying decisions, Barrow said.
“Some of these buyers want to downsize, but it can be hard to do that when it costs more due to higher home prices and higher interest rates,” she said.
Barrow still recommends making a down payment of 20 percent, but she suggests talking with a financial planner to review options for investing additional proceeds from the sale of a home.
“It’s important to think about their income in retirement and how much of it will be variable or fixed,” she said. “That, plus their mortgage rate, will help make a decision on whether to make a larger down payment.”
Repeat buyers tend to have substantial home equity, Combs says, which eases concern about qualifying for a loan.
“Their decisions tend to be more about how a move fits into their lifestyle and long-term plans,” he says. “People often say they’re buying their ‘forever home,’ but life circumstances and priorities change.”
The important element for buyers of any age is to stay in touch with professionals, including lenders and financial planners, who can provide expert advice on any options they’re considering.
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