Wealthy PotAverage Age of First-Time Home Buyers: 40, a Record, and What It Means
The typical first-time home buyer in the United States is 40 years old, the oldest on record, according to the National Association of Realtors' 2025 Profile of Home Buyers and Sellers, which covers purchases from July 2024 to June 2025. Four editions earlier the figure was 33, and in the 1980s it was the late 20s. First-time buyers also made up a record-low 21% of all purchases. The Census Bureau's own data point the same way: only 35.2% of households headed by someone under 35 owned their home in mid-2026. This page lays out the trend, what drives it, and what a later start does to a household's finances.
Table of Contents
The Short Answer
- 40 is the median age of first-time home buyers, an all-time high in NAR's survey (2025 Profile, purchases July 2024 to June 2025).
- It was 33 in the 2021 Profile, 36 in 2022, 35 in 2023 and 38 in 2024.
- First-time buyers were 21% of all buyers, a record low. Before 2008 the norm was about 40%.
- Repeat buyers had a median age of 62; all buyers, 59.
- First-time buyers put down a median 10%. 59% used personal savings, 26% tapped financial assets such as a 401(k) or stocks, and 22% had gifts or loans from family and friends.
- Census: 35.2% of householders under 35 owned their home in the second quarter of 2026, against 60.9% at 35 to 44 and 78.6% at 65 and over.
First-Time Buyer Age, Year by Year
NAR's Profile of Home Buyers and Sellers has run since 1981 and is the source behind almost every "average age of a first-time buyer" figure you will see. It is a survey run by the realtors' trade association, not a government statistic, and it reports medians: half of first-time buyers were younger than 40 and half older. The same survey, edition by edition:
| NAR Profile edition | Purchases covered | Median age, first-time buyers | First-time buyers' share of all purchases |
|---|---|---|---|
| 1980s | Late 20s | About 40% norm before 2008 | |
| 2021 | Jul 2020 to Jun 2021 | 33 | 34% |
| 2022 | Jul 2021 to Jun 2022 | 36 | 26% |
| 2023 | Jul 2022 to Jun 2023 | 35 | 32% |
| 2024 | Jul 2023 to Jun 2024 | 38 | 24% |
| 2025 | Jul 2024 to Jun 2025 | 40 | 21% |
The rise has not been a straight line (it dipped to 35 in 2023, when more first-time buyers got in), but the direction is clear: seven years older in four editions. NAR's deputy chief economist said the first-time buyer share "has contracted by 50% since 2007."
The 2025 survey went to 173,250 recent buyers in July 2025 and drew 6,103 responses from people who bought a primary residence, an adjusted response rate of 3.5%. NAR puts the margin at plus or minus 1.25 percentage points at 95% confidence. Studies built on other data, such as mortgage records, can produce different ages, so compare like with like: NAR to NAR.
Is the typical first-time buyer really 40?
It depends on who is counted. A federal source using mortgage records gets a much younger answer. The Federal Housing Finance Agency's National Mortgage Database follows a nationally representative sample of first-time buyers taken from credit records. FHFA's March 2024 study of loans made from 2003 to early 2023 found that "the median age of FTHBs at the time of purchase has remained relatively constant, at about 30 years."
The two figures measure different things:
- Who counts as first-time. FHFA counts a borrower with "no previous mortgage tradeline in their credit histories in the past seven years," and only people who take out a mortgage. NAR asks buyers whether this was their first home purchase, including cash buyers.
- How the data is collected. FHFA's figure comes from loan records. NAR's comes from a mailed survey with a 3.5% response rate, which may not reach every kind of buyer equally.
- Timing. FHFA's published series stops in early 2023. NAR's 40 covers purchases from July 2024 to June 2025, after the sharpest jump in its own series.
So both can be right. A fair summary: in NAR's survey of recent buyers, the first-time median has climbed to a record 40. Mortgage records have shown a steadier median near 30 over two decades, though they do not yet cover the last two years.
Who First-Time Buyers Are Now
| 2025 Profile | First-time buyers | Repeat buyers | All buyers |
|---|---|---|---|
| Median age | 40 | 62 | 59 |
| Median down payment | 10% | 23% | |
| Paid all cash | 30% | ||
| Married couples | 50% | 61% | |
| Single women | 25% | 21% | |
| Single men | 10% | 9% | |
| Children under 18 at home | 32% | 24% (record low) |
Where the down payment came from tells the story of who can buy: 59% of first-time buyers used personal savings, 26% drew on financial assets such as a 401(k), stocks or cryptocurrency, and 22% had a gift or loan from family or friends (buyers could name more than one). NAR notes that the 10% median first-time down payment matches the highest level recorded since 1989. Our average down payment page has the full breakdown.
Homeownership Rate by Age: The Census View
The Census Bureau does not ask when people bought their first home, but its Housing Vacancy Survey publishes, every quarter, the share of households in each age group that own. That is the government's best measure of how fast younger people move into ownership.
| Age of householder | Q2 2004 (peak) | Q2 2016 | Q2 2025 | Q2 2026 |
|---|---|---|---|---|
| Under 35 | 43.6% | 34.1% | 36.4% | 35.2% |
| 35 to 44 | 69.4% | 58.3% | 61.0% | 60.9% |
| 45 to 54 | 77.0% | 69.1% | 69.2% | 69.7% |
| 55 to 64 | 82.4% | 74.7% | 75.8% | 75.1% |
| 65 and over | 81.1% | 77.9% | 78.6% | 78.6% |
| All households | 69.2% | 62.9% | 65.0% | 65.0% |
Two things stand out. Under-35 ownership in 2026 is far below its 2004 peak and only about a point above the 2016 low. And ownership among people aged 35 to 44, the group that now contains the median first-time buyer, is still 8.5 points lower than in 2004. Older households, by contrast, own at close to their historical rates. That fits NAR's picture of a market split between equity-rich repeat buyers and renters struggling to get a first foot in.
Why First-Time Buyers Are Older
NAR points to limited inventory and prices out of reach, with mortgage rates averaging 6.69% during its 2025 survey period. First-time buyers who did purchase named high rent and student loans as the two biggest obstacles to saving. Other factors fit the data:
- Later marriage. The Census Bureau's median age at first marriage was 30.8 for men and 28.4 for women in 2025, up from 26.9 and 24.5 in 1995. Half of first-time buyers are married couples, so later marriage pushes later buying.
- Bigger down payments to save. Higher prices mean a 10% down payment takes longer to build, and many buyers now wait until they can make one.
- Competition from cash. 30% of repeat buyers paid all cash in the 2025 survey, which beats a first-time buyer's financed offer.
Whether buying is still the right call at your age and in your market depends on how long you will stay and what local rents are; our rent vs buy guide walks through the comparison.
What Buying at 40 Means for Your Finances
The age itself matters less than what it does to the timeline. Some hypothetical arithmetic:
| First purchase at | 30-year mortgage paid off at | 15-year mortgage paid off at |
|---|---|---|
| 28 (1980s "late 20s") | 58 | 43 |
| 33 (2021 median) | 63 | 48 |
| 40 (2025 median) | 70 | 55 |
A buyer who starts at 40 with a 30-year loan is still making payments at 70, years after most people stop working (the median retiree in EBRI's survey stopped at 62; see the average retirement age). That is the strongest argument for planning to have the mortgage gone by retirement: a shorter term, extra principal payments, or a deliberate plan to pay it off with savings. Our comparison of 15-year vs 30-year mortgages shows the trade-off between a higher payment and decades of interest, and the mortgage calculator will show your own numbers.
The down payment is the other hurdle. Hypothetically, on a $350,000 home, NAR's median 10% is $35,000 and a full 20% is $70,000. Saving $700 a month, $35,000 takes about four years before any interest. Our guide to saving for a down payment covers where to keep the money while you build it, and the average mortgage payment shows what the monthly bill looks like once you buy.
A later start also means less time for home equity to build before retirement. That does not make renting a mistake: renting while investing the difference can work, but only if the difference really gets invested. Check where you stand against average net worth by age.
Helping a Child or Grandchild Buy
Many of our readers are on the other side of this: parents or grandparents who could help. One in five first-time buyers (22%) already uses a gift or loan from family or friends. If you are considering it:
- The IRA first-home exception. The IRS waives the 10% additional tax on up to $10,000 (a lifetime limit) of IRA withdrawals used to buy a first home for yourself, your spouse, your or your spouse's child or grandchild, or a parent or other ancestor. "First-time" means no ownership interest in a main home in the previous two years, and the money must be used within 120 days. Income tax still applies to traditional IRA money, and the exception does not cover 401(k) or other workplace plan withdrawals. If you are over 59½ the 10% tax does not apply anyway.
- A gift vs a loan. Mortgage lenders treat them differently, and a loan adds to the buyer's debt load. Decide which it is, in writing.
- Your own plan first. Money that leaves a retirement account stops compounding. Size any help against your own spending needs, and remember that withdrawals can raise your taxable income for the year.
Sources & Methodology
- National Association of Realtors, 2025 Profile of Home Buyers and Sellers news release (November 4, 2025), the 2025 highlights (PDF) and the highlights page.
- NAR, 2024 Profile news release (November 4, 2024) and 2022 Profile highlights (PDF): earlier editions for the trend.
- US Census Bureau, Quarterly Residential Vacancies and Homeownership, Second Quarter 2026 (July 28, 2026), Table 6, and historical Table 19.
- US Census Bureau, Table MS-2: Median Age at First Marriage.
- IRS Publication 590-B, "First home," and IRS, exceptions to tax on early distributions.
- FHFA Working Paper 24-02, "Measuring Homeownership Sustainability for First-Time Homebuyers" (March 2024): median first-time buyer age from National Mortgage Database records, 2003 to early 2023.
Method notes. NAR's ages are medians from its own survey of recent primary-residence buyers; NAR is a trade association, and its survey is not official data. The trend uses each edition's own published figure. Census homeownership rates are second-quarter figures so seasons match; fourth-quarter 2025 data omit October 2025 because of the federal funding lapse, and that quarter is not used. Mortgage and down payment examples are our arithmetic on hypothetical numbers.
This article is for general information and is not financial, tax or mortgage advice. Figures are from the National Association of Realtors, the US Census Bureau and the IRS, checked against the primary sources on 2026-10-05. Examples are hypothetical. Mortgage terms, taxes and the right time to buy depend on your circumstances; consider speaking to a qualified professional before making a decision.
FAQ
Why do some sources say the first-time buyer age is in the early 30s, not 40?
They use different data. NAR's 40 comes from a survey of recent buyers. FHFA's National Mortgage Database, built from credit records of people taking out a first mortgage, found a median of about 30 that stayed steady from 2003 to early 2023. The two count different people over different periods.
What is the average age of a first-time home buyer?
40, the median in the National Association of Realtors' 2025 Profile of Home Buyers and Sellers, covering purchases from July 2024 to June 2025. It is the highest NAR has recorded.
What was the first-time buyer age in the past?
NAR says the typical first-time buyer was in their late 20s in the 1980s. More recently it reported 33 in its 2021 Profile, 36 in 2022, 35 in 2023 and 38 in 2024.
What share of home buyers are first-time buyers?
21% in NAR's 2025 Profile, a record low. NAR says the historical norm before 2008 was about 40%.
What is the average age of a repeat home buyer?
62, according to the same 2025 NAR survey. The median age of all buyers was 59.
What percentage of people under 35 own a home?
35.2% of households headed by someone under 35 owned their home in the second quarter of 2026, per the Census Bureau's Housing Vacancy Survey. The peak was 43.6% in 2004.
How much do first-time buyers put down?
A median of 10% in NAR's 2025 Profile, matching the highest level since 1989. Repeat buyers put down a median 23%.
Can I use my IRA to help my child buy a first home?
Yes. The IRS lets you withdraw up to $10,000 (lifetime) from an IRA for a qualified first-time homebuyer, including a child or grandchild, without the 10% early-withdrawal tax. Regular income tax still applies to pre-tax money, and the exception does not apply to 401(k) withdrawals.
Is 40 too old to buy a first home?
No; it is now the median. The main adjustment is planning to have the mortgage paid off by retirement, which may mean a shorter loan term or extra principal payments.
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"Average Age of First-Time Home Buyers: 40, a Record, and What It Means." Wealthy Pot, 2026. https://wealthypot.com/average-age-of-first-time-home-buyer/
