First-Time Homebuyers Hit Record Age as Affordability Crisis Deepens

URGENT UPDATE: The median age of first-time homebuyers has surged to a record high of 40 years in 2025, according to a just-released report from the National Association of Realtors (NAR). This marks a significant increase from 38 years in 2024, highlighting the escalating affordability crisis in the housing market.

The latest data reveals that the median sale price of a home now stands at $410,800, a staggering increase of over 25% since 2019. The average 30-year mortgage rate has also doubled since late 2021, creating a challenging landscape for potential buyers.

Jessica Lautz, NAR’s Deputy Chief Economist, stated, “The historically low share of first-time buyers underscores the real-world consequences of a housing market starved for affordable inventory.” The percentage of first-time buyers has plunged by 50% since 2007, just before the Great Recession, sending shockwaves through the housing market.

As of today, only 28% of homes on the market are affordable for the average household, according to Realtor.com. This alarming statistic emphasizes the urgent need for policy changes to address the crisis.

The report surveyed 6,103 buyers who purchased homes for their primary residences between July 2024 and June 2025. Lautz warns that today’s first-time buyers are likely to build less housing wealth, leading to fewer moves over their lifetimes.

In response to the urgency of the situation, President Donald Trump has called on the Federal Reserve to implement aggressive rate cuts to alleviate borrowing costs. On Wednesday, the Fed announced its second quarter-point interest rate cut of the year, reducing the target range to 3.75%-4.00%. However, Fed Chair Jerome Powell cautioned that another cut in December is not guaranteed.

While mortgage rates are influenced by the Fed’s actions, analysts warn that modest cuts may have limited effects on borrowing costs. Furthermore, Treasury Secretary Scott Bessent mentioned that the administration is considering declaring a national housing emergency and has suggested eliminating capital gains taxes on home sales as potential solutions.

This growing affordability crisis has immediate implications for millions of Americans. As more first-time buyers delay homeownership, the emotional and financial toll becomes increasingly evident. Homeownership is a cornerstone of financial stability and wealth-building, making these shifts critical for future generations.

As the situation develops, all eyes will be on policymakers and the Federal Reserve to see how they will respond to this urgent housing crisis. Stay tuned for further updates as this story unfolds.