The $119K Wealth Gap Between Early and Late Homebuyers

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For years, real estate agents have talked about homeownership as a path to building wealth.

Now there’s new data quantifying just how powerful the timing of buying a home can be.

A new Realtor.com Generational Wealth Report finds that households who purchase their first home by age 30 have 22.5% higher net worth by age 50 compared to those who wait until their 40s. On average, that gap amounts to about $119,000 in additional wealth.

The findings reinforce something many agents already know from experience: the earlier a buyer gets into the market, the more time they have to benefit from equity through appreciation and mortgage paydown.

But the report also highlights a growing problem: the window for early homeownership is getting harder to reach.

The First-Time Buyer Timeline Has Shifted a Full Decade

One of the most striking insights in the report is how dramatically the timing of first-time homeownership has changed.

In 1990, the median age of a first-time homebuyer was 30.

By 2025, that age had climbed to 40, according to the National Association of Realtors.

That decade-long delay reflects a widening gap between incomes and housing costs. Just take a look at how the report broke down in 1990 vs 2025:

In 1990:

Median home price: $96,800.
Median household income: $31,000.
The price-to-income ratio: 3.11.
Typical down payment: $8,200 (8.5%)
Years to save down payment: 3.2 years

In 2025:

Median home price: $418,000.
Median household income: $85,000.
The price-to-income ratio:4.9.
Typical down payment: $41,800 (10%)

In other words, the time required to save for a down payment has tripled over the past three decades.

That delay means many buyers are entering the housing market later in life and missing years of potential appreciation and equity growth.

Buying Earlier Means More Time to Build Wealth

The report finds a clear difference in wealth outcomes depending on when someone buys their first home.

Buyers who purchase between ages 28 and 32 show 22.5% higher net worth by age 50, or about $119,000 more wealth.
Buyers between ages 33 and 37 show 11.2% higher net worth, or roughly $59,000 more.
Buyers between ages 38 and 42 show 1.5% higher net worth, or about $8,000 more.
Buyers who wait until their mid-40s or later show no measurable wealth advantage in the study.

The pattern reflects how housing wealth builds over time. Buying earlier gives homeowners more years for price appreciation and mortgage paydown to add to their net worth.

Danielle Hale, chief economist at Realtor.com, said those extra years can make a meaningful difference over time.

“Homeownership has long been a cornerstone of financial security in the U.S., and our analysis shows that laying that foundation sooner can have big impacts.

“Earlier entry into the market doesn’t just provide a place to live; it catalyzes broader balance-sheet growth. By gaining more years for appreciation and mortgage paydown, early homebuyers build a foundation of wealth that supports opportunities that cascade into the next generation.”

Homeownership and the Cycle of Generational Wealth

The report also highlights how homeownership doesn’t just build wealth for one household; it often shapes financial outcomes across generations.

Housing wealth often carries forward through family support, inheritance, and early exposure to homeownership. In fact, children who grow up in homeowner households are more likely to become homeowners themselves. Realtor.com’s analysis found they are 18.4 percentage points more likely to own a home by age 35 compared to those raised in renter households.

Homeownership also affects how wealth moves from one generation to the next. Homeowners are 1.3 times more likely than renters to expect to leave assets to the next generation.

Family financial help has also become a more common bridge into homeownership.

1 in 5 first-time buyers report receiving a gift or loan from family or friends to help with their purchase.
Households that receive an inheritance of at least $5,000 are about 2.5 times more likely to become homeowners than those who do not.

The report also highlights ongoing disparities in access to homeownership.

The homeownership rate for White households was 75.1% in 2025.
The rate for Black households was 44.2%.
The rate for Hispanic households was 48.7%.

Against this backdrop, Realtor.com announced a new national advocacy campaign called Homegrown, focused on preserving access to homeownership and addressing the growing affordability gap.

The initiative comes as the U.S. continues to face an estimated housing shortage of roughly 4 million homes, a supply gap that has made it increasingly difficult for first-time buyers to enter the market.

Realtor.com CEO Damian Eales emphasized the broader implications in the announcement:

“Homeownership has long been one of the most reliable ways families build and pass on wealth, shaping a family’s financial security for decades to come. Yet today, too many young people are stuck on the sidelines, because buying a home has become increasingly out of reach.

“With Homegrown, we’re shining a light on what’s at stake if we don’t keep the path to ownership open, not just for today’s buyers, but for their children and grandchildren. We aim to spark a national conversation – and ultimately national action – to keep the dream of homeownership, and the wealth it creates, open to all.”

For many first-time buyers today, the challenge is simply getting started. Higher home prices and longer savings timelines mean the path to homeownership looks very different than it did a generation ago.

Which makes early conversations around budgeting, timelines, and financial planning more important than ever.

Why This Data Matters for Real Estate Agents

For agents, this research highlights an important shift in how the homeownership conversation should be framed with buyers.

The discussion isn’t just about interest rates or monthly payments.

It’s about timing and long-term financial trajectory.

When younger buyers hesitate because they believe they need to wait for the “perfect” market, the data suggests the bigger risk may be waiting too long to start building equity.

That doesn’t mean every client should rush into buying. But it does mean agents have an opportunity to help buyers understand the long-term financial impact of entering the market earlier.

As affordability challenges grow, education and guidance will become even more critical.

Key Details:

Realtor.com’s Generational Wealth Report finds households that buy a home by age 30 have 22.5% higher net worth by age 50, equal to about $119,000 more wealth than buyers who wait until their 40s.
The report also shows the median first-time buyer age rising from 30 in 1990 to 40 in 2025 as the time needed to save for a down payment increased from 3.2 years to 9.7 years.
Median home prices climbed to $418,000 by 2025 while median household income reached $85,000, widening the affordability gap for first-time buyers.

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Chuck Barberini Real Estate