If you are like me and still picture the first-time homebuyer as a 20-something couple clutching house keys, it may be time to update that mental image. According to the National Association of Realtors, the median age of first-time homebuyers has climbed from 28 in 1992 to a record-high 40 in 2025.
Yes… 4-0. First-time buyers are now closer to over-the-hill birthday balloons than starter-home housewarming parties. And for repeat buyers? The median age is now 62. This isn’t a blip. It’s a quiet but powerful reshaping of who’s entering—and re-entering—the housing market.
More than 50% of all homebuyers today are 55 and older. That flips the old script. Younger buyers aren’t gone—they’re just delayed. What’s behind the push toward older first-timers? Mostly rising home prices and high interest rates but that's only been the last five years—the bigger picture is a change in lifestyle. High student loan debt in Millennial and Gen-Z cohorts coupled with stricter lending standards post-2008 have left many renting over the American Dream of ownership. Buying a first home at 40 means many are entering the market with more career stability, higher wages, or accumulated savings—but also at a phase of life where their needs look very different than the classic “starter home” stereotype.
This one raised eyebrows: 26% of all buyers in 2025 paid cash, up from the long-standing national average of about 10%. This shift exploded beginning in 2022 and hasn’t slowed. What’s driving it?
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Many older buyers are selling a previous home with strong equity gains
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Higher interest rates making cash more attractive
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More wealth transfer, inheritance, and family-assisted buying
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Investors and downsizers competing in the same price points as first-timers
When one out of four buyers is writing a check, the playing field changes—especially for younger buyers relying on financing.
And...Here’s the part everyone in the industry should be paying attention to. Despite lawsuits, headlines, and commission-drama clickbait, the use of agents is strong—unchanged or rising:
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91% of sellers used an agent (up year-over-year)
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88% of buyers used an agent
Consumers aren’t ditching agents—they’re ditching mediocre ones. The agent shake-out is fewer agents, more expertise.
With the number of licensed agents shrinking as the market corrects, the top tier is consolidating business. Clients are being more selective, choosing proven expertise over “my cousin just got her license.”
Today’s buyer and seller want: skilled negotiators, market strategists, design and value-add guidance, tech-driven marketing, and someone who can calmly navigate a volatile market. Aka, you're 'full-time' career agent—less part-time second career agents. The era of the “side-gig agent” is fading fast. The professional, full-time, highly skilled agents are capturing more market share than ever.
This isn’t just quirky trivia; it signals a fundamental shift:
👉 The typical “first-time buyer” is older, more financially established, and more selective.
👉 Cash offers will continue to influence pricing and competition.
📍 Agents who treat real estate like a profession—not a hobby—will win in this next chapter.
The market isn’t collapsing. It’s evolving—and in many ways, maturing.
My take-away: the first-time homebuyer of today is entering the market later, wealthier, and more research-driven. Cash buyers are flexing power. And consumers are choosing seasoned, educated agents with real value—not just relationships. If you’re buying, selling, or advising others, understand this: the next decade of real estate will belong to those who adapt—not those who cling to the old model.
Read more at NAR
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Adam Pretorius is a top-producing luxury real estate agent in Iowa City. Follow for more real estate insights and news.
