America’s housing ladder is lacking a couple of rungs.
The median first-time homebuyer is now 40 years previous — a document excessive — and among the nation’s most seasoned brokers say the “starter home” has grow to be extra of a luxurious.
“I feel strongly that the American dream still exists, and that dream is to buy a home, start a family, whatever that means for you,” Compass prime agent Miltiadis Kastanis additionally instructed Fox Digital. “But I do think that the American dream still has homeownership at the core root of it … It’s still there, but as time goes on, we have to adapt as Americans to the environments we’re in.”
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The Nationwide Affiliation of Realtors launched its 2025 Profile of Residence Consumers and Sellers earlier this month, discovering that the median age of first-time homebuyers jumped to the very best ever recorded at 40 years previous. The report attributed this to restricted housing stock and longer saving and search durations.
America’s first-time homebuyer hit a brand new document excessive age of 40, in keeping with the Nationwide Affiliation of Realtors. (Getty Photographs)
Knowledge from the Federal Reserve Financial institution of St. Louis exhibits the nationwide median gross sales value of homes offered within the U.S. reached $410,800 in Q2 2025. Moreover, Zillow knowledge from earlier this 12 months discovered that U.S. dwelling values have risen greater than 45% since 2020.
“I have noticed that the homebuyer age has increasingly become older through time. I mean, even for my generation, I’m now 40 years old, I bought my first home when I was 19 years old, and I notice I don’t work with many 19-year-olds today,” Kastanis reacted.
“My first home that I ever bought was nowhere near the world of what somewhat-younger people are expecting from a first home. I think expectations have changed,” he continued. “I think they’re surrounded by people, of seeing online what others have, and they’re expecting way more … Prices for sure have changed, right? Like, at some point, I never dreamed of having a $1 million home, where now $1 million in my market doesn’t get you much.”
Fox Enterprise’ Darren Botelho and Ashley Webster study why the median age of first-time homebuyers has climbed to 40. Kevin Hassett discusses President Donald Trump’s 50-year mortgage plan.
“I see younger people adjusting their expectations,” Worrell agreed. “A lot of people in their 20s aren’t thinking about necessarily that quote-unquote ‘first milestone’ … I would say that they have to kind of go back and think about how to get there, and think about affordability strategies like, how will you make that first down payment?”
“Now these folks are more in a planning stage at that mid 20s [age], like planning to future-buy a home, but that is years of planning to be able to do that,” she added.
Between mortgage volatility, sky-high costs and cost-of-living will increase, each brokers say the combo of market components has made it tougher for millennials and Gen Z to maintain up.
“Regardless if homeownership was part of your plan, affordability of living is incredibly high, right? And so, it’s hard for them to dig themselves out of that,” Worrell argued. “But will that next generation get left behind in terms of homeownership? It’s hard to say, because right now there’s not, in my opinion, a great plan for changing affordability in general.”
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“I think it’s related to the cost of living. It is very expensive to live in America, first and foremost, but to live in a safe, prime neighborhood to get that American dream, it’s just way more costly,” Kastanis mentioned.
“Imagine trying to maintain a good lifestyle with the cost of living in America. You know, it’s a very hefty price to pay – that’s worth it, by the way, because obviously, as an American, I feel this is the greatest country in the world,” he expanded. “But in order to get what the world considers the American dream, it costs a lot more for this generation.”
Whereas right this moment’s 40-year-old first-time purchaser is usually meticulous, cautious and over-prepared, youthful patrons could make pricey errors that derail presents.
“They don’t take it lightly … they want what they want,” Worrell famous of her first-time patrons. “An experienced realtor is very important because that person has seen it all … ‘That may not work out for you, but there’s a home over here,’ … ‘Let’s have a look at new construction where the builder is willing to pay your closing cost,’ … There’s opportunity there for a buyer.”
“I do think that the American dream still has homeownership at the core root of it … It’s still there, but as time goes on, we have to adapt as Americans to the environments we’re in.”
– Miltiadis Kastanis
“A lot of the younger first-time buyers, there’s a little bit of concern in them that makes them react a little bit slower,” Kastanis identified, “thinking too much and not getting into the deal … that lack of representation with the younger buyers is proven to be problematic.”
“In order to have a seat at the table in a competitive market, you have to have a strong strategy,” he continued. “You have to work with professionals and trust professionals that have navigated the old, pre-COVID market, the post-COVID market.”
Their greatest recommendation: align with an actual property knowledgeable and look ahead to components past your management — stock, inflation and charges.
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New knowledge launched by the Nationwide Affiliation of Realtors stories the standard new home-owner is 40 years previous, ‘The Large Cash Present’ panel reacts.
“I think it comes down to the basic ethos of human interaction, and having the conversations and setting yourself up [right] so that you can have a strategy to get the results that you want and what your American dream is,” Kastanis mentioned.
“I would 100% change what young people are taught in terms of setting themselves up for the time and place that they’re put in,” Worrell chimed in. “It’s hard to see somebody who has all the skills, or who has the discipline, or who’s doing everything right, but simply cannot overcome because they’re not getting paid enough in their job — or maybe even two jobs — to overcome the current economy.”
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