If it feels like people are waiting longer to buy their first home, you’re not imagining it.

According to the 2025 NAR Profile of Home Buyers and Sellers, the median age of first-time buyers just hit 40—the oldest on record. That’s up from 38 last year and a big jump from the late 20s back in the 1980s.

So what’s changed? A lot, actually.

Buying Your First Home Is Tougher Than Ever

First-time buyers now make up just 21% of all home purchases—a record low. Traditionally, that number hovered closer to 40%.

In other words, fewer people are managing to buy their first home, and those who do are waiting longer, saving harder, and often carrying more financial weight than past generations.

Here’s why.

The Growing Divide Between First-Time and Repeat Buyers

While first-time buyers are shrinking as a group, repeat buyers are thriving. They’re older, sitting on plenty of equity, and in many cases, don’t need financing at all.

A few eye-opening stats from this year’s report:

• Repeat buyers’ median age: 62 — another record high.
• All-cash purchases: Nearly 30% of repeat buyers paid cash, compared to only 8% of first-timers.
• Down payments: Repeat buyers put down 23% on average, while first-timers put down 10%—the highest since 1989.

That much equity gives repeat buyers a huge edge in today’s market, especially since most homes in 2025 sold for 99% of list price.

Why Breaking Into the Market Is So Hard

There’s no single cause—just several challenges piling up at once:

• Higher mortgage rates: With rates averaging 6.69%, monthly payments remain steep.
• Limited affordable listings: Newer homes are typically priced higher, leaving few true “starter homes.”
• Rising rent and student debt: Saving for a down payment is tough when so much of your income goes to rent or loan payments.

In fact, among those who did manage to buy, 59% used personal savings and 26% dipped into 401(k)s or investments to cover costs. It’s taking longer than ever to get to that first set of keys.

Why Repeat Buyers Hold the Upper Hand

Homeowners who’ve been in the game for a while are reaping the rewards of a decade of appreciation.

They’ve typically owned their homes for about 11 years, meaning they’ve built up serious equity. Many are using those proceeds to buy their next home outright or take on a smaller mortgage—making them more competitive and flexible when they find the right property.

Experience also plays a role. They’ve already navigated the process once, so they tend to move faster and negotiate with confidence.

How First-Time Buyers Can Still Win in 2025

If you’re feeling discouraged, don’t be. There are real ways to get a foot in the door—especially with the right strategy:

1. Look into down-payment assistance. Federal, state, and local programs can help cover upfront costs.
2. Ask about creative financing. Lenders may offer temporary rate buydowns or special first-time buyer options.
3. Explore new construction. Builders often provide incentives like rate reductions or closing cost credits.
4. Consider multi-generational living. Fourteen percent of buyers bought a home with family this year to share costs or care for relatives.
5. Work with an experienced agent. Eighty-eight percent of buyers used a professional in 2025—and for good reason. The right agent helps you find hidden opportunities and negotiate terms that work for you.

The Bottom Line

The journey to homeownership may look different today—but it’s still possible.

Yes, the typical first-time buyer is older, but they’re also more financially prepared and thoughtful about the process.

If you’re planning to buy your first home soon, start the conversation early. I can help you explore local programs, financing options, and smart buying strategies to make that dream home a reality.