The number of first-time homebuyers in the US fell to 1.1 million in 2024, marking a three-decade low. Economic instability coupled with high home prices and mortgage rates stifles the housing market. The average age of first-time buyers is now 38, up from the late 20s in the 1980s, leading to potential delays in retirement and longer work lives. Current interest rates from the Federal Reserve have not alleviated high mortgage rates, further reducing the number of prospective buyers and maintaining pressure on home prices.
The estimated number of first-time homebuyers in the US dropped to a little more than 1.1 million in 2024, the lowest level since 1989.
Buying a home later in life typically has ripple effects, meaning people may need to work longer to achieve their goals.
The average age of a first-time homebuyer was 38 years old in 2023, a record high compared to the late 20s in the 1980s.
Interest rates currently sit between 4.25% to 4.5%, but mortgage rates remain above 6.5%, nearly double what they were five years ago.
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