The average age of a first-time homebuyer in the United States has reached a new peak of 40 years old in 2025, marking a significant shift from previous generations and highlighting the increasing challenges in accessing homeownership. This latest figure represents a steady rise from 38 in 2024 and 35 in 2023, reflecting a broader trend of delayed entry into the property market. The escalating cost of housing is a primary driver behind this demographic change.

Decades ago, the typical first-time homebuyer was considerably younger, often in their late twenties during the 1980s. The consistent upward trajectory in buyer age underscores a fundamental transformation in the American housing landscape, where economic pressures and market dynamics now necessitate a longer period of saving and financial preparation before individuals can afford to purchase a property. This trend impacts not only individual financial planning but also broader economic indicators.

The median sales price for houses across the U.S. stood at $440,387 in October 2025, according to data from Redfin. This figure represents a dramatic increase when compared to historical prices. For instance, in the fourth quarter of 1985, the median sales price was just $86,800, illustrating the vast expansion in property values over the past four decades.

When adjusted for inflation, the real cost of homeownership has also surged considerably. The 1985 median value of $86,800 would be equivalent to approximately $259,362 in 2025 dollars. This means that the actual median sales price in 2025—at $440,387—is over $181,000 higher than what the inflation-adjusted 1985 price would suggest, representing a roughly 70% increase in real terms over that period.

This challenging environment has led to a record low proportion of first-time homebuyers in the market. In 2025, only 21% of all homebuyers were entering the market for the first time, an unprecedented low. Even repeat buyers are purchasing later in life, with their average age rising to 62 in 2025, up from 61 in 2024 and 58 in 2023, indicating a broader trend of delayed property transactions across all buyer segments.

The average age of homebuyers, however, is not uniform across the nation, varying significantly depending on the specific metropolitan area. While the national average for first-time buyers sits at 40, local market conditions, economic opportunities, and property values contribute to these regional differences. This highlights the diverse nature of the U.S. real estate market.

In major metro areas, the average age of all homebuyers generally hovers around 40 years old, based on 2023 data. Interestingly, a direct correlation between higher property values and older average buyer ages does not always hold true. This suggests that other factors, such as local income levels, job markets, and housing supply, play crucial roles in shaping buyer demographics.

For example, the Seattle-Tacoma-Bellevue metropolitan area, known for its high property values with a median of $713,610, recorded an average homebuyer age of 38. In contrast, Kansas City, with a significantly lower median property value of $299,300, saw an average homebuyer age of 40 years. This disparity underscores the complex interplay of factors influencing homeownership patterns.

Other prominent urban centers also show varied statistics. In the Newark-Jersey City-New York area, the average buyer age was 41, with a median property value of $610,940. Atlanta-Sandy Springs-Alpharetta reported an average age of 43 and a median value of $426,760. Houston-The Woodlands-Sugar Land had an average age of 42 and a median value of $353,140, while Chicago-Naperville-Elgin buyers averaged 40 years old for properties valued at $344,370. Los Angeles-Long Beach-Anaheim buyers averaged 42 years with median values soaring to $926,570.

These regional insights collectively illustrate a challenging national landscape for aspiring homeowners. The confluence of rising property prices, stagnant wage growth in real terms for many, and increasing interest rates has pushed the dream of homeownership further out of reach for a growing segment of the population, particularly younger adults and first-time buyers. The trend suggests a generational shift in wealth accumulation and financial stability.

The sustained increase in the average age of both first-time and repeat homebuyers, coupled with historically high median sales prices, paints a clear picture of a market under considerable strain. This environment demands innovative policy solutions and a careful examination of economic factors impacting housing accessibility across the United States.

Read Original

Keywords: first-time homebuyer age, US housing market, median home price, real estate trends, housing affordability, 2025 housing data, property values, homeownership challenges