Indiana
First Time Homebuyer Age Hits Record High of 40
The age of the typical first-time homebuyer last year remained stuck at a historic high of 40 years old as younger people continue to get the worst of brutally high prices and interest rates in much of the country. That’s…
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Key points
- The median age of first-time homebuyers reached a historic high of 40 years old for the second consecutive year.
- Neighboring New York and Massachusetts ranked among the least affordable states for housing in a realtor.com report.
- One in 10 first-time buyers now pays entirely in cash, carrying a median buyer age of 54.
NewsWK — Young buyers across Southern Vermont and neighboring states face persistent real estate challenges. National data shows buyers must wait much longer to purchase their first homes.
What is driving the median age of first time homebuyers?
High prices and elevated interest rates continue to push buyers to older ages. A National Association of Realtors report shows the median age of first time homebuyers stayed at 40 last year. That figure matches the previous record high, up from 28 in 1991 and 33 in 2019.
Meanwhile, repeat buyers also reached an all-time high median age of 62 years old. High interest rates continue to hamper younger families seeking market entry.
What are the biggest first time homebuyer challenges?
Buyers face steep market barriers, leading many to rely on family inheritances or cash. About one in 10 first-time buyers now pays entirely in cash, with a median age of 54. Regionally, neighboring New York and Massachusetts ranked lowest for affordability in a realtor.com home affordability survey.
“That’s actually 1 in 10 first-time buyers, so we’re really seeing that generational transfer of wealth,” said Jessica Lautz of the association. Conversely, states like Indiana and Texas showed higher affordability rates.
Why do different surveys report contrasting buyer ages?
Data sources differ because some include cash sales while others analyze only mortgage applications. The Federal Reserve reported a median age of 33 for mortgage applicants in early 2026. However, demographic experts note that the true average likely falls between 35 and 40 years old.
Demographics analyst Eric Finnigan noted that overall studies put buyers between 35 and 40 years old. He stated that “the answer is probably somewhere in the middle.”
This article was produced with the assistance of AI and reviewed by our editorial team.
Sources
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