What is the 2025 First Time Homebuyer Age?
The National Association of RealtorsⓇ (NAR) June 2024 - June 2025 data shows the median age of first-time home buyers is now 40 years old. This is a 5.26% increase year over year and a significant 21.21% jump from 2020. This shift is especially notable when compared to the previous four decades. From 1981-2021, the first-time homebuyer age held steady with an average of 31, fluctuating only between 28 to 33. With less than five years between the lowest and highest ages during that entire period, the seven-year increase since 2021 is particularly striking.
Not only has the median age increased, but the number of first-time homebuyers has also dropped significantly. As of 2025, only 21% are first-time homebuyers, a 50% decrease since 2007, and the lowest since 1981 according to NAR. On the other hand, cash buyers has risen, now accounting for 26% of sales across the nation.
What Has Affected First Time Homebuyers?
Low inventory stemming from the hyperactive 2020 - 2022 real estate market is a contributing factor to these shifts. Inventory is continually met by the demand of buyers as homeownership is a key component of building wealth and a part of the American Dream. Especially during 2020-2022 when mortgage rates were still 3% or lower, this drove demand and, as a result, median sales prices increased drastically.
Now, with mortgage rates still above 6% and rising listing prices, it has pushed many first time buyers out of the market. Inventory has gradually begun to rebuild over the past year which has helped stabilize conditions, but affordability remains a challenge without relief in interest rates or pricing.
How Does Buying for the First Time at an Older Age Affect Equity?
By losing ten years of homeownership, experts estimate that may result in roughly $150,000 less equity gain. This creates a domino effect - there is less equity to leverage, fewer “trade-up” opportunities, resulting in reduced purchasing power. Because homeowners are moving less frequently, the average number of years spent in a home is now 11, an all time high. Prior to 2008, we saw an average of 6 years, however it has slowly been creeping up to this new record number.
This slowdown has resulted in an increase in median age of repeat buyers to 62 and all buyers median age to 59, two more unexpected records. Demographics play a role, as well as longer time in the workforce, higher income, and stronger savings which allows buyers to make larger down payments.
Is There a Solution for First Time Home Buyers?
Experts continue to identify supply as the root cause of the elevated market and unaffordability. They suggest that new construction and creating more opportunities for homeowners to move around in the market (upsizing, downsizing, cashing out with the higher prices) will provide options for new buyers. Simply put: more movement in the market will create more opportunities for buyers across the board.
Real Estate Trends in La Plata County
La Plata County mirrors these trends. At a county-wide macro level, our inventory has rebounded significantly since 2023 and we are seeing more and more price reductions. However, median and average prices, especially in town and rural Durango and Bayfield, remain high and we are still limited in inventory. Outside factors continue to play a major role, including the stock market, federal mortgage rates, and inflation.
Our mission at The Durango Team at The Wells Group is to help sellers and buyers reach their real estate goals, no matter where they are in the journey. We stay continually informed on market data and share timely insight with our clients and community. If you are considering buying or selling in La Plata County, Southwest Colorado or beyond, we’d love to connect with you.
If you’re currently renting and thinking about buying, read this blog. HomesFund is a local Southwest Colorado first time home buyer program, learn about their services here.
“First-Time Home Buyer Share Falls to Historic Low of 21%, Median Age Rises to 40.” National Association of REALTORS®, 4 Nov. 2025, ww.nar.realtor/newsroom/first-time-home-buyer-share-falls-to-historic-low-of-21-median-age-rises-to-40.
