First-time homebuyers are getting older in the U.S.: This the average age for those buying a house for the first time
High prices and rising interest rates are making it even harder for young adults to get on the housing ladder. Let’s look at the current landscape.
Buying a place of your own has always required a great deal of sacrifice but for first-time buyers, it’s getting even harder.
The median down payment which first-time buyers saved in order to buy during 2024 was 9% of the property’s value, according to the National Association of Realtors - for a $400,000 home, that is a deposit of around $36,000. That is a lot of money to save - especially if you are already renting.
Then there are additional costs and fees - surveys, conveyancing and moving costs, before you have agreed a mortgage with the bank. The current average interest rate for a 30-year fixed mortgage is 6-7%. After that, there’ll be the interest to pay on the loan, taxes, insurance fees, along with maintenance and upkeep costs.
What is the average age of a first-time home buyer in the US in 2025?
So it’s little wonder that in the United States, first-time buyers seeking an entry-level home in today’s housing market are older than they’ve ever been.
The average age of a first-time US home buyer in 2025 is now 38 years old, according to a study by John Burns Research and Consulting (JBREC), who offer independent research and consulting services related to the US housing industry.
Compare that to previous years. Between 1993 and 2018, the average age of a first-time buyer was 31. By 2020, it had risen to 33.
In the mid-80s, almost half of Americans had taken on a mortgage to buy their first home by the time they’d reached 30. Barely a third are able to do so in today’s climate before they celebrate their 30th birthday.
Fewer young people entering US housing market
House affordability, stagnant wages, job insecurity on top of limited housing options mean that fewer young people dare to enter the housing market until they feel established in the workplace and have been able to save up for the down payment.
So where is the sector heading heading and will the situation improve, or get even worse? The market’s not looking like it will level out anytime soon - JP Morgan expects house prices to rise by 3% in 2025 with little or no change to the lending rate. Basically, the earlier you start saving, the more chance you will have of owning your own place in adulthood.
Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all.
Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.