First-Time Buyers Skew Younger as Inventory Improves
The typical age of a first-time homebuyer declined to 35 in 2025, down from 36 in 2024 and a recent peak of 38 in 2018, according to a new report from Redfin. The brokerage's estimates differ from widely cited figures released late last year by the National Association of Realtors, which put the median age of first-time buyers at 40. Redfin said the two sets of numbers are based on different methodologies and measure slightly different populations.
Redfin's analysis is based on the U.S. Census Bureau's Current Population Survey Annual Social and Economic Supplement, which captures nationally representative household data. By contrast, NAR's figures come from a survey of recent homebuyers conducted via mail and text message, reflecting the experiences of respondents who purchased during a specific period and chose to participate. Both approaches provide insight into buyer behavior, but they can yield different median ages, Redfin said.
Other datasets align more closely with Redfin's findings. The Federal Reserve Bank of New York, using credit panel data, has reported median ages for first-time buyers in the mid-30s in recent years. Data from the National Mortgage Database similarly show first-time buyers typically in their 30s, reinforcing the view that while affordability pressures are significant, the entry point into homeownership has not shifted as dramatically as some survey-based estimates suggest.
Redfin attributed the modest decline in buyer age to slightly improved market conditions. The average 30-year fixed mortgage rate was 6.6% in 2025, down from 6.72% in 2024. Home prices continued to rise, but price growth slowed, and inventory improved in many major metros. Redfin expects affordability to continue to improve throughout the year.
Gen Z homeownership rose to 27.1% in 2025 from 26.1% a year earlier, while millennial homeownership increased to 55.4% from 54.9%.
"Housing costs have steadily risen over the last few decades, especially in the last five years," said Chen Zhao, Redfin's head of economics research. While wages have grown, they have not kept pace with home prices, suggesting that many younger buyers are turning to alternative funding sources, she noted.
Nearly one in five millennial buyers, 19.6%, received a cash gift from family to help with a down payment, according to a November 2025 Redfin survey. Among Gen Z buyers, 14.8% received family assistance. Roughly 20% of recent buyers in both generations sold stock investments to fund their purchase, and 13% withdrew money early from retirement accounts.
Repeat buyers are also getting younger, Redfin found. The typical repeat buyer was 47 in 2025, down from a historic peak of 52 the year before. Redfin cited pent-up demand from 2024, when some households delayed moves amid elevated mortgage rates. As rates edged lower and buyers adjusted to borrowing costs above 6%, more returned to the market in 2025, Redfin said.
Source: GlobeSt/ALM