US first-time homebuyers reach record median age of 40

The median age for first-time homebuyers in the United States has remained at a historic high of 40 years old, according to new data from the National Association of Realtors. This trend reflects the impact of high property prices and interest rates, which continue to challenge younger buyers.

A significant shift is occurring in how homes are financed. Approximately 10% of first-time buyers are now purchasing homes entirely with cash, a figure that represents a generational transfer of wealth. These all-cash buyers are notably older, with a median age of 54, compared to a median age of 38 for those utilizing mortgages. Among these cash purchasers, 28% reported using an inheritance to fund the purchase.

First-time buyers accounted for 22% of all home purchases between July 2025 and June 2026. While this is a slight increase from the previous year's low of 21%, it remains well below the historical norm of 40%. Regional disparities persist, with the San Francisco Bay Area seeing escalating prices due to the AI boom, while states like Indiana, Iowa, and Texas are noted for higher affordability and building rates.