A Tough Road For Rookie Homebuyers

For generations, homeownership has been one of the most important ways American families put down roots in their communities and build long-term wealth that can be passed down from one generation to the next.

For many Americans, that dream is taking longer than ever.

In 1991, the typical first-time buyer was able to purchase a home by the time they were 28 years old. By 2020, that age had gradually climbed to 33, then shot up to 36 in 2022. Today, the typical first-time homebuyer is 40 years old, an all-time high, while first-time buyers make up just 21% of all home purchases.

This shift is a major signal that homeownership is becoming harder for younger families and first-time buyers to reach, with consequences for household wealth, community stability, and the long-term health of the housing market.

First-time buyers are facing a tougher path.

The housing affordability challenge is being driven by several forces at once: limited affordable inventory leading to elevated home prices and high rents, against a backdrop of higher mortgage rates. Along with a rising cost of living, these pressures make it harder for younger Americans to save for a down payment and compete in today's housing market.

• Home prices and mortgage rates have spiked in recent years. Nationwide home price indices rose over 50% over the six years ending in December 2025, while the 30-year fixed mortgage rate rose from 3.7% to over 6.1% over the same time period.
• New homebuyers spend a far higher share of their income on housing than existing homeowners — and that gap is growing. According to the Economic Innovation Group, new homeowners are spending 26% of their income on housing, compared to 20% for existing homeowners, a gap larger than even the peak of the housing crisis in 2007.

Ensuring homeownership for the next generation

Nearly three in four Americans still say owning a home remains a major life aspiration. The American Dream is still alive — but harder to access.

Addressing the rising age of first-time homebuyers will require solutions that increase housing supply, unlock investment, and support affordability. Already, across the housing and financial ecosystems, private companies are meeting that challenge — financing new developments, expanding access to housing finance, and directly supporting first-time homebuyers with programs like down payment assistance and homebuyer education.

These efforts are not a substitute for smart policy, but they are an essential part of making housing more attainable. With the right mix of public policy and private investment, more families can have a fair shot at homeownership and building long-term financial stability.

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