UPDATE: The typical age of first-time homebuyers has soared to a record 40 years old in 2025, according to a shocking new report from the National Association of Realtors (NAR). This alarming increase from 38 in 2024 underscores the severe impact of the ongoing affordability crisis gripping the U.S. housing market.
The NAR’s recent Profile of Home Buyers and Sellers reveals that the median sale price of a home now stands at $410,800 — a staggering rise of over 25% since 2019. As mortgage rates have nearly doubled since late 2021, potential buyers are being pushed further out of the market. Just two years ago, the median age for first-time buyers was only 33, a significant shift that highlights the growing challenges for new homeowners.
“The historically low share of first-time buyers underscores the real-world consequences of a housing market starved for affordable inventory,” said Jessica Lautz, NAR Deputy Chief Economist and Vice President of Research. The data indicates that the share of first-time buyers has plummeted by 50% since 2007, right before the Great Recession, leading to profound implications for the housing market.
Today’s first-time buyers are facing a bleak future, as they build less wealth and will likely move less frequently over their lifetimes, Lautz added. The NAR surveyed 6,103 buyers who purchased homes for their primary residence between July 2024 and June 2025.
This crisis has captured the attention of the Trump administration, with only 28% of homes on the market deemed affordable for the average household, according to Realtor.com. President Donald Trump has publicly urged the Federal Reserve to implement aggressive rate cuts to ease the financial burden on potential buyers. In a recent announcement, the Federal Reserve confirmed its second quarter-point interest rate cut of the year, reducing the target range to 3.75%-4.00%. However, Fed Chair Jerome Powell cautioned that another rate cut in December is not guaranteed.
Analysts warn that while mortgage rates may drop in response to the Fed’s actions, the effects on borrowing costs could be limited. In a bid to address the crisis, Treasury Secretary Scott Bessent mentioned the possibility of declaring a national housing emergency, while Trump has floated ideas such as eliminating capital gains taxes on home sales.
This urgent housing crisis not only affects economic conditions but also has significant emotional ramifications for aspiring homeowners across the country. The record age of first-time buyers reveals a stark reality: many are being forced to delay homeownership dreams, impacting not just their financial futures but their personal lives as well.
As the affordability crisis continues to unfold, all eyes are on the administration’s next steps to provide relief to struggling homebuyers. Will further measures be implemented to revive a market that has become increasingly out of reach for so many? The answer remains uncertain, but the urgency of the situation cannot be overstated.
Stay tuned for the latest updates on this developing story.
