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First-Time Buyers Are Older, Fewer, and Struggling to Compete
A generational shift in homeownership is underway. And for real estate professionals, the latest data offers both a warning and an opportunity.
But younger and historically marginalized buyers are taking the biggest hit.
That finding echoes another data point from the National Association of REALTORS®’ 2024 Profile of Buyers and Sellers: just over 1.1 million Americans bought their first home in 2024, the lowest number since the NAR began tracking that figure in 1989. The average age of a first-time buyer also rose to a record high of 38.
So what’s driving these shifts? And how can agents stay relevant to the buyers still in the game?
Younger Buyers Are Being Pushed Out
Realtor.com’s senior economic research analyst Hannah Jones confirmed what many agents already sense on the ground.
“Homeownership rates by age showed downward movement for younger groups this quarter as buyers contend with challenging market conditions.”
Among those under 35, the homeownership rate dropped to 36.6%, down 1.1 percentage points from Q1 2024. Buyers aged 35 to 44 also saw a 1.1-point drop, landing at 60.3%.
Even buyers aged 55 to 64 weren’t spared, with ownership falling to 75.2%, also down 1.1 points year over year.
Meanwhile, homeownership for Americans 65 and older actually ticked up, rising to 79%. That generational divide is becoming more pronounced, especially as affordability remains one of the biggest roadblocks.
The jump from age 35 to 44 helps explain why the average first-time buyer age is now 38, a full decade older than it was in the 1980s. Younger buyers simply aren’t entering the market when they used to.
Affordability Still Dominates the Conversation
Despite some signs of softening, prices and rates continue to lock buyers out.
According to Zillow, to afford a typical U.S. home of $367,969, buyers need to earn nearly $100,000 annually.
Even where there is inventory, price relief is limited. According to the U.S. Census Bureau, the median list price for vacant homes at the start of 2025 was $300,600, but that’s still far above what many first-time buyers can manage, especially with elevated interest rates.
Daryl Fairweather, Chief Economist at Redfin, summed up the long-term consequence of these delays.
“It probably means they’re going to be retiring later, because when you buy a home, you’re setting up for a 30-year mortgage. People are finding that they’re going to have to work longer, basically, to achieve these goals.”
Racial Disparities Are Growing
The decline in homeownership is not being felt equally across all groups.
According to the Realtor.com analysis:
- Black homeownership fell by 1 percentage point, dropping to 44.7%.
- Hispanic homeownership dropped even more sharply, falling 2.1 points to 47.8%.
- Asian, Native Hawaiian, and Pacific Islander households saw a slight decline to 62%, down 0.2 points.
By contrast, white homeownership rose 0.2 points, reaching 74.2%.
These gaps reflect broader affordability challenges and unequal access to credit, inventory, and generational wealth. For agents, this is a reminder that market education and advocacy need to extend well beyond transaction support.
Regional Trends Are Shaping Inventory and Opportunity
Agents working in the South and Midwest may find more wiggle room than those on the coasts.
According to the Q1 Census vacancy report:
- The South had the highest homeowner vacancy rate at 1.3% and also led the country in rental vacancies at 8.6%.
- The Midwest followed with a homeowner vacancy rate of 0.9% and rental vacancy at 7.6%.
- The West and Northeast lagged behind with lower inventory. The Northeast, in particular, had the lowest homeowner vacancy rate at just 0.6% and the smallest share of rental vacancies at 5.1%.
Jones put it this way:
“The South and the Midwest have performed well in terms of affordability. The Northeast has performed the worst in terms of both new construction activity and affordability.”
Inventory challenges in higher-priced metros continue to restrict movement for both first-time buyers and those looking to downsize, relocate, or trade up.
What This Means for Real Estate Agents
This isn’t just a dip in buyer demand. It’s a generational and demographic shift in who can afford to own.
If you work with first-time buyers, this is the time to double down on education, long-term relationship building, and creative financing solutions. You might also consider:
- Partnering with lenders to help buyers understand loan options and grant programs
- Targeting your messaging by age group, region, or affordability tier
- Sharing transparent affordability comparisons for rent vs. buy scenarios in your market
- Keeping sellers informed about who is, and isn’t, buying right now
Homeownership isn’t disappearing. But for many Americans, it’s getting delayed, reshaped, and reprioritized. Agents who understand the deeper trends will be the ones who earn trust and stay relevant, no matter what the market throws their way.
Key Details:
- Homeownership is slipping for younger Americans, with the average first-time buyer now 38 years old, according to data from the National Association of Realtors.
- A Realtor.com analysis of Census data shows homeownership among adults under 35 has dropped to 36.6%, the lowest since before the pandemic.
- Black and Hispanic homeownership also declined year over year, as affordability pressures continue to reshape the housing market.
Sarah Lentz | Jul 15, 2025 | Housing Market
https://nowbam.com/first-time-buyers-are-older-fewer-and-struggling-to-compete/
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