First-Time Homebuyers Are Older Than Ever in 2025. Here’s What That Means for You

If it feels like everyone buying their first home these days is a little older than they used to be… you’re not imagining it.

According to the 2025 Profile of Home Buyers and Sellers from the National Association of REALTORS®, the median age of first-time buyers just hit 40 years old,  the highest on record. That’s up from 38 last year and way up from the late 20s back in the 1980s.

So what’s going on? Why is it taking longer than ever to buy that first home? Let’s break it down.

It’s Not Just You, Buying a Home Really Is Harder

First-time buyers now make up only 21% of all home purchases, the lowest share ever recorded. Historically, it’s been closer to 40%.

That means fewer people are buying their first home, and the ones who do often wait longer, save more, and carry heavier financial baggage, from student loans to rising rents, before they finally get to the closing table.

The Housing Market’s Growing Divide

While first-time buyers are shrinking in numbers, repeat buyers are thriving. They’re older, have built-up equity, and many can buy with little or no financing.

Here are a few eye-opening stats from NAR:

• The median age of repeat buyers is 62, the highest ever.

• Nearly 30% of them paid all cash (compared to just 8% of first-timers).

• Repeat buyers put down 23% on average, while first-timers managed 10%, which is the highest since 1989.

When you combine cash, equity, and experience, it’s easy to see why repeat buyers often win in multiple-offer situations , especially when homes in 2025 are still selling for about 99% of list price. 

Why It’s So Hard to Break Into the Market

A few big challenges are holding first-time buyers back:

• Higher mortgage rates: The average was 6.69% during the study, keeping monthly payments higher than in previous years.

• Limited affordable inventory: “Starter homes” are increasingly rare, especially in high-demand areas like here in San Diego.

• Student loans and Rent Costs. It’s tough to save when you’re already stretched thin. Nearly 60% of successful first-time buyers used personal savings, and 26% tapped into 401(k)s or investments just to make it happen.

So yes, it’s taking longer. But that doesn’t mean it’s impossible.

 What You Can Do If You’re a First-Time Buyer

If you’re feeling discouraged take a breath, there are still real opportunities out there. Here are some smart ways to get ahead:

• Explore downpayment assistance programs. There are excellent options for first-time buyers that can help with upfront costs.

• Talk to your lender about creative financing options. Ask about 2-1 buydowns or temporary rate reductions to help ease into your payments.

• Consider New Construction. Many builders are offering rate buydowns or closing cost incentives.

• Consider multi-generation living. Fourteen percent of buyers purchased multi-gen homes in 2025,  it can be a smart way to save while supporting family.

• Work with an experienced local agent.  Eighty-eight percent of buyers used a Realtor® in 2025,  and for good reason. Having someone who knows the local market, the programs, and how to structure a winning offer can make all the difference.

The Bottom Line

The path to homeownership looks a little different these days, but it’s still within reach. The average first-time buyer might be older, but they’re also more prepared, stable, and strategic, and that’s a good thing.

If buying a home in San Diego County is on your radar in the next year or two, let’s start planning early. I’ll walk you through local programs, creative financing options, and what it really takes to go from “someday” to “sold.” 

Just book a time with me here for a strategy call: https://links.townsites.com/widget/bookings/intro-call-with-shelly