Average first time homebuyer age 2025

First-time homebuyer statistics

Many first-time homebuyers make significant sacrifices to afford purchasing a home. These financial compromises include limiting spending on items like luxury goods, new clothes and various forms of entertainment.

• In 2023, the median down payment for first-time buyers was 8% of the total purchase price of the home.
• As many as 23% of first-time homebuyers used a loan or gift from family or friends for their down payment.
• For first-time buyers, 60% cite owning a home as their primary motivation.

What percentage of homebuyers are first-timers?

In 2024, first-time homebuyers accounted for 32% of all homes sold, an increase from 26% in 2023. However, the percentage of first-time buyers remains below the 38% average that has been common since 1981. This increase is significant, considering that the 2023 percentage of first-time buyers was the lowest since the National Association of Realtors began tracking first-time homebuyer data.

The highest share of first-time homebuyers occurred in 2010, with 50% of the homes sold in the U.S. being purchased by first-time buyers.

First-time homebuyer demographics

In 2024, the median first-time homebuyer was 35 years old, down from age 36 the year before — an all-time high for first-time homebuyers.

Despite the fact that people are older by the time they purchase their first house, 75% of younger millennials (between ages 25 and 33) became first-time homebuyers in 2024. The proportion of younger millennials becoming first-time homebuyers increased from 70% in 2023. Overall, younger and older millennials (ranging from ages 25 to 43) now make up 38% of the total homebuyer market.

However, the age of first-time homebuyers also appears to vary with gender. The median age for first-time homebuyers who identify as single women was 38, but the age drops to 33 for single men.

More people from diverse racial and ethnic groups are becoming homeowners. In 2024, 55% of all Asian/Pacific Islander homebuyers were first-time buyers. In addition, 51% of Black/African American and 51% of Hispanic/Latino homebuyers were first-timers.

A larger percentage of first-time homebuyers are also unmarried couples. In 1985, only 4% of all first-time buyers were unmarried couples — a percentage that’s risen to 18% in 2024. Fewer married couples are first-time buyers, too. In 1985, an overwhelming 75% of first-time buyers were married couples. In 2022, only 50% of first-time buyers are married. The percentage of single men purchasing homes has not changed a lot since 1985, rising from 9% to 10%. However, the percentage of single women who are first-time buyers in 2022 has risen from 11% to 19% over the same period.

Only 13% of all homes purchased in 2023 were new. However, with 87% of all homes purchased in 2024 previously owned, a majority of first-time buyers likely purchased a preowned home.

Median home prices over time

Over the last 10 years, the median sales price of houses in the U.S. has steadily risen. At times, quarterly prices have fallen, including recently from the beginning of 2023 to the beginning of 2024 when the median sales price of houses decreased from $429,000 to $420,800. Despite minor fluctuations from one quarter to the next, the median price for a house in the U.S. rose almost $150,000 over the last decade.

Median home prices also vary from region to region in the U.S. While the nationwide median sale price is $420,800, it is significantly higher in states in the Northeast but lower in the Midwest and South. This variation might make it easier for different demographics to become first-time homebuyers in states with lower median house prices.

The high price of buying a home in 2024 has consequences for first-time homebuyers. First-time buyers are typically older, with a median age in their mid-30s. Data shows that they might need to wait to become financially able to purchase a home when they cost more to begin with. For example, 38% of first-time homebuyers report that the most difficult step of financing a home was saving for the down payment. If the median downpayment for a first-time homebuyer is 8% of the purchase price, they need to save $33,664 to cover the median purchase price of a home in the U.S. That downpayment almost doubles for a first-time homebuyer looking to buy a home at a median price in the Northeast.

References

1. “Highlights From the Profile of Home Buyers and Sellers.” National Association of Realtors. Evaluated June 21, 2024.Link Here
2. “Median down payment of first-time and repeat buyers in the United States from 1989 to 2023.” Statista. Evaluated June 21, 2024.Link Here
3. “NAR Finds Share of First-Time Home Buyers Smaller, Older Than Ever Before.” National Association of Realtors. Evaluated June 21, 2024.Link Here
4. “Millennials Reclaim Position as Largest Group of Home Buyers.” National Association of Realtors. Evaluated June 21, 2024.Link Here
5. Lautz, J. “Celebrating Single Women Home Buyers.” National Association of Realtors. Evaluated June 21, 2024.Link Here
6. “Snapshot of Race and Home Buying in America.” National Association of Realtors. Evaluated June 21, 2024.Link Here
7. Lautz, J. “Love (and Home Buying) Brings Us Together: Married vs. Unmarried Couples in the Housing Market.” National Association of Realtors. Evaluated June 21, 2024.Link Here
8. “Median Sales Price of Houses Sold for the United States.” Federal Reserve Bank of St. Louis. Evaluated June 21, 2024.Link Here
9. “Median and Average Sales Price of Houses Sold by Region.” Federal Reserve Bank of St. Louis. Evaluated June 21, 2024.Link Here
10. Bagley, J., & Palim, M. “Mortgage costs as a share of housing costs—placing the cost of credit in broader context.” Fannie Mae, Economic and Strategic Research Group. Evaluated June 21, 2024.Link Here