The American dream of homeownership, long a symbol of stability, achievement, and upward mobility, is facing unprecedented challenges as the median age of the average first-time homebuyer in the United States has soared to 40 years old, according to newly released data from the National Association of Realtors (NAR).

Today’s first-time homebuyers face arduous financial hurdles. The typical down payment is now 10%, matching the highest level recorded since 1989. Most rely on their personal savings (59%), but a significant contingent is tapping financial assets like 401(k)s and investment accounts (26%), while over one in five are depending on gifts or loans from family or friends (22%). This underscores how entry into homeownership has become less accessible for those without substantial family support or generational wealth.

The NAR profile also shows that only 24% of buyers have children under the age of 18 at home, yet another all-time low. Meanwhile, the share of Americans buying multigenerational homes, where owners care for aging parents and children moving back after college, has dropped to 14% from 17% in 2024. Source 🔗