Why First-Time Buyers Are Getting Older — And How to Still Make It Happen in 2025

If it seems like people are buying their first homes later than ever before, you’re not imagining it. According to the 2025 Profile of Home Buyers and Sellers from the National Association of REALTORS®, the median age of first-time buyers has climbed to 40—a record high.

Back in the 1980s, most first-time homeowners were in their late 20s. So what’s changed? Let’s explore the key factors behind this shift—and more importantly, what you can do to become a homeowner in today’s market.

What’s Behind the Delay in Buying?

Today’s aspiring buyers are facing a much tougher landscape than previous generations. First-time buyers now make up just 21% of all home purchases, down significantly from historical averages near 40%.

Why the decline? A mix of affordability challenges, shifting priorities, and economic pressure.

The Growing Divide Between First-Timers and Repeat Buyers

2025’s market is heavily influenced by buyers who’ve owned property before. These repeat buyers typically bring more money, more experience, and more leverage.

Here’s what the latest data reveals:

• Median age of repeat buyers: 62

• 30% paid in cash, compared to only 8% of first-timers

• Repeat buyers averaged 23% down payments; first-time buyers managed 10%—a peak not seen since 1989

With this kind of advantage, repeat buyers often outcompete newcomers—especially in multiple-offer situations where cash or high down payments seal the deal.

Affordability Headwinds Are Real

Let’s be honest—affording a home in 2025 is harder than ever, especially if it’s your first.

Here’s what buyers are up against:

• Mortgage rates remain elevated, averaging around 6.69%, making monthly payments less affordable than in previous low-rate periods

• Entry-level inventory is limited, with many new homes priced for move-up buyers

• High rent, inflation, and debt are cutting into savings potential

In fact, 59% of first-time buyers in 2025 used personal savings for their down payment, while another 26% dipped into retirement or investment funds to make it work.

The Equity Advantage of Repeat Buyers

Those who already own homes are reaping the rewards of appreciation. On average, repeat buyers held onto their homes for 11 years, building substantial equity they can use toward their next purchase.

This built-up equity gives them the ability to:

• Make larger down payments

• Buy with all cash

• Move faster when the right listing hits the market

It’s a major edge in a competitive environment.

5 Smart Ways First-Time Buyers Are Winning in 2025

Don’t be discouraged—there are viable ways to break into the market if you plan strategically.

✅ 1. Tap Into Assistance Programs

Look into state and local first-time buyer programs that offer grants, low-interest loans, or closing cost help.

✅ 2. Consider Financing Tools

Ask your lender about 2-1 buydown programs, rate locks, or adjustable-rate mortgages that can reduce initial payments.

✅ 3. Explore Builder Incentives

New construction is a great option—many builders are offering perks like closing cost credits or interest rate buydowns.

✅ 4. Go Multi-Generational

Roughly 14% of 2025 homebuyers opted for multi-gen living—a smart way to share expenses and responsibilities.

✅ 5. Work With a Pro

With 88% of buyers using a real estate agent this year, having a guide through the process is more important than ever—especially when it comes to negotiation and paperwork.

Age Isn’t a Barrier—Preparation Is the Key

Buying at 35 or 40 might feel “late” compared to previous generations, but it also means you likely have more savings, stronger credit, and a clearer sense of your goals.

The real win isn’t just owning a home—it’s buying the right home, at the right time, and with the right support team.

Final Takeaway

It may take more effort and patience to become a first-time buyer in 2025—but it’s 100% possible. With the right financial strategy, an informed approach, and expert guidance, you can turn your homeownership dreams into reality—no matter your age.

FAQs

1. Why are buyers waiting longer to buy?
Today’s economic landscape—rising prices, student debt, and tough lending requirements—means it takes longer to get financially ready.

2. What’s the current age of first-time buyers?
The average is 40 years old, per the 2025 NAR report.

3. Can I compete with all-cash buyers?
Yes! Get pre-approved, make strong offers, and consider homes that need light upgrades (many cash buyers avoid those).

4. Will rates go down later this year?
Possibly. Rates are hovering between 6%–7%, but some forecasts suggest a slow decline based on inflation trends and Fed policy.

5. How do I start if I want to buy next year?
Speak to a local lender and real estate agent now. They’ll help you understand what’s possible, what to save for, and how to get pre-qualified.