First-Time Homebuyers Face Record Challenges as Median Age Hits All-Time High

The U.S. housing market has become increasingly challenging for first-time homebuyers, with new data from the National Association of REALTORS® (NAR) revealing historic lows in their share of total purchases. According to NAR’s 2024 Profile of Home Buyers and Sellers, released on November 4, first-time buyers accounted for just 24% of all home purchases over the past year—the lowest percentage ever recorded.

Declining First-Time Buyer Representation

Before the 2008 financial crisis, first-time buyers represented nearly 40% of the market, making today’s numbers a stark contrast. Additionally, the median age of first-time buyers has risen to 38 years, surpassing the previous high of 36.

Supply Shortages and Rising Prices

The decline in first-time buyers highlights broader issues in the housing market. Limited inventory, coupled with escalating prices, has left many potential buyers unable to enter the market. Builders have also slowed the pace of housing starts since the Great Recession, focusing primarily on higher-priced homes instead of affordable starter homes.

“We have 50 million people in this country between the ages of 30 and 40—prime homebuying years. This enormous cohort is struggling to find housing,” said Michael Fratantoni, Chief Economist at the Mortgage Bankers Association. “We have been underbuilding by a lot.”

Looking Ahead

The record-low share of first-time buyers underscores the urgent need for increased housing production and more affordable options. Without a significant shift in market dynamics, the dream of homeownership may remain out of reach for many aspiring buyers.

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