The Blubber

The average age of homebuyers in the U.S. has increased by six years since July 2023, highlighting how younger Americans are being priced out by rising homeownership costs. Now at a historic high of 56, up from 49 in 2023, the average buyer age reflects a stark contrast from the early 2010s when buyers were often in their low-to-mid 40s, according to a report from the National Association of Realtors (NAR) released on Monday.

First-time buyers have seen the median age rise as well, moving from 35 to 38, while their share of total buyers has dropped to 24% from 32%, marking the lowest level since NAR began tracking this figure in 1981.

“This is the hardest time I've seen for millennials to enter the housing market,” says Bob Driscoll, senior vice president at Rockland Trust, who attributes this to escalating ownership costs. With the median U.S. home price now at $435,000—a 39% jump since 2020—and 30-year fixed mortgage rates having doubled to over 6%, affordability challenges are clear, he says.

High homeownership costs pose significant barriers, especially for younger buyers who may face student loan debt, high rents, and lower career-stage wages. Driscoll notes that saving for a down payment remains the biggest hurdle, with an 18% down payment on a $435,000 home equating to $78,300—almost as much as the median annual household income of $80,610, according to Census Bureau data.

Even those who can manage the down payment often lose out to older, wealthier buyers who leverage equity from homes they already own, Driscoll explains. Younger buyers are also up against cash buyers, whose share of home purchases rose from 20% to 26% in the last year, according to NAR.

Predictably, about a quarter of first-time buyers have turned to financial help from family or friends to afford a down payment, the data shows.

“Homeownership for the younger generation is becoming wildly unaffordable,” says Noah Damsky, chartered financial analyst and principal at Marina Wealth Advisors. “Saving up can be a steep challenge without a high income or existing wealth, as the typical income only covers basic needs, underscoring how critical a financial leg-up can be for homebuying.”