Forty, First Home: What the Age Spike Means for Buyers and Lenders
According to NAR’s 2025 Profile of Home Buyers and Sellers, first-time buyers now have a median age of 40, and their share has fallen to 21%, a record low. That is a historic shift that changes how we coach renters and near-ready clients.
Quick history for context. In the 1980s, the typical first-time buyer was in their late 20s. From the early 1990s through the late 2010s, the median age sat in the 30 to 32 range. Even in 2020 it was 33. Then, in only a few years, it jumped to 38 and now 40.
In 2000, the typical first-time buyer was 32, right in line with the decades-long pattern. The real acceleration came later, which is why the recent spike makes the dollar impact clearest. Craig Johnson, a KeySteps LO who regularly joins our FinLocker office hours, helped frame this age jump as a practical “cost of waiting” story that’s easier to grasp in equity terms.
What waiting has likely cost, in simple termsThese are broad, national illustrations, not advice. They compare a median buyer who entered earlier to someone still renting.
Bought in 2015 vs buying in 2025. National median existing price around $229k in 2015 vs around $415k today. That’s approximately $186k in appreciation on the median home, before principal paydown. A decade of normal amortization adds tens of thousands more in equity.
Bought in 2020 vs buying in 2025. Annual median around $296.5k in 2020 vs around $415k today. Roughly $118k in price gains over five years, plus five years of principal reduction for those who bought.
Dollar figures vary by market, property, and financing, but the direction is clear. The age curve moved up while prices kept moving higher, widening the gap between early owners and late entrants.
Why this happenedLonger savings timelines, tight inventory, and higher monthly costs pushed many would-be buyers to delay, alongside factors like student debt and wage growth lagging home prices. That delay compresses the wealth-building runway and turns what used to be a natural life step into a longer hurdle.
What professionals can do now
Start prep earlier. Treat an 18–24 month prep timeline as standard. Work on credit, savings, and debt so options exist when the right home appears.
Show the path in dollars. Use local medians to illustrate how earlier entry compounds equity through appreciation and amortization.
Coach to total monthly cost. Clear, compliant conversations about payment, taxes, insurance, and maintenance build confidence.
Coordinate with agents. Align on a shared prep plan so buyers don’t stall between pre-approval and contract.