Would you be surprised to know that the typical first-time home buyer in America is now 40 years old?
That is not a typo, and it is not a rough guess. It comes from the National Association of REALTORS® 2025 Profile of Home Buyers and Sellers, which tracks transactions from July 2024 through June 2025. The median first-time buyer age hit an all-time high of 40. The share of buyers who were buying for the first time fell to 21%, an all-time low.
If you bought your first place in your twenties or early thirties, those numbers may sound like a different country. If you are in your thirties and still renting, they may be the first time anyone has told you that you are not behind. Either way, they change how the whole market works, including for people who are thinking about selling.
What did the new NAR data actually find?
The Profile of Home Buyers and Sellers is an annual survey of recent buyers and sellers. Here are the headline figures from the 2025 edition:
- First-time buyers: 21% of all buyers, down from roughly double that share in 2007. Median age 40.
- Repeat buyers: 79% of all buyers. Median age 62. Median down payment 23%, and 30% paid all cash.
- First-time buyer down payment: a median of 10%, matching the highest level recorded since 1989.
- Sellers: a median of 11 years in the home before selling, an all-time high.
- Agents: 88% of buyers and 91% of sellers worked with an agent or broker.
One note on scope: these are national numbers. NAR does not publish this particular survey at the Chicago neighborhood level, so I am not going to pretend to hand you a Chicago-only first-time buyer age. What I can do is show you how the national picture meets the Chicago numbers I track, and I will do that below.
Why are first-time buyers waiting until 40?
NAR’s economists point to a housing market short on affordable inventory. Jessica Lautz, NAR’s deputy chief economist, described a market where buyers with significant home equity are making larger down payments and all-cash offers, while first-time buyers continue to struggle to get in. That is the “two markets” idea in plain terms: the buyer who already owns a home arrives with equity and flexibility, and the buyer who has been renting arrives with savings and a budget.
The way first-time buyers fund their purchase says a lot about how long it takes. According to the survey, 59% used personal savings for the down payment, 26% drew on financial assets such as a 401(k), stocks, or cryptocurrency, and 22% received a gift or loan from family or friends. Saving a 10% down payment on a Chicago-area home, while paying rent, takes time.
What does waiting cost?
NAR’s chief advocacy officer, Shannon McGahn, estimated that delaying homeownership from age 30 to age 40 can mean giving up roughly $150,000 in equity on a typical starter home. That is NAR’s estimate, and every person’s situation is different, so treat it as a way to understand the scale of the issue, not a promise about your own numbers. It is also worth saying the opposite plainly: buying before you are ready, with no cushion for repairs or a job change, carries its own cost. The right age to buy is the age when your finances and your plans line up.
How does this play out in Chicago?
The national story is a shortage of homes that first-time buyers can afford. In the Chicago neighborhoods I work most, that shortage is visible in my own MRED data through August 2026.
- Active inventory across Lincoln Park, Lake View, Near North Side, West Town, and Logan Square fell roughly 27 to 30% year over year.
- Logan Square condos had just 0.7 months of supply and averaged 103.1% of original list price over the rolling 12 months.
- Lincoln Park condos had 0.9 months of supply and averaged 102.7% of original list price.
- Mortgage rates were hovering near 7% in September.
Condos are where many first-time buyers start, so this is the segment to watch. When a first-time buyer is financing with 10% down and the condo they want has less than a month of supply, they are competing for very few homes at a time when financing costs more than it did a few years ago. That is a real obstacle. It is also a reason to get organized early, because a buyer who has talked to a lender, understands how Chicago’s property tax system works, and knows the neighborhoods can move quickly when the right home appears.
Who might buy your home if you are selling?
You never know in advance who your buyer will be. Nationally, repeat buyers have a median age of 62 and sellers have been in their homes a median of 11 years, while first-time buyers are 40 and only 21% of the market. Your buyer could be a first-time buyer, another repeat buyer, or someone buying a second home. The best plan is to be ready for any of them.
If your buyer does turn out to be a first-time buyer, a few things matter:
- Financing is more likely. A buyer putting down 10% relies on a lender and an appraisal in a way an all-cash buyer does not, so condition, pricing, and presentation all matter.
- Preparation counts. First-time buyers are often making the biggest purchase of their lives. A well-maintained, clearly documented home reassures them.
- Timing can be flexible. Some first-time buyers are working around a lease, so a conversation about closing and possession dates early on can make a contract smoother.
The handoff often runs both ways. A first-time buyer frequently buys the condo an empty nester no longer needs, and an empty nester who is downsizing frequently buys the kind of smaller home a first-time buyer would have started in. Both are often shopping the same limited inventory, along with second-home buyers who want a place in the city. That is part of why preparation matters on either side of the transaction.
If you are weighing whether to list now or wait, I am glad to walk through what the current numbers look like for your neighborhood, whether that is Lincoln Park, Lakeview, or Bucktown and Wicker Park.
What if you are the parent or grandparent helping out?
With 22% of first-time buyers receiving a gift or loan from family or friends, many of you are part of this story. If you are thinking about helping a family member with a down payment, talk with your accountant or attorney first about gift tax rules and with the buyer’s lender about what documentation they will need. I can explain how the real estate side works, but those two professionals should guide the financial and legal details.
What if you are still renting at 35?
You are in good company. The typical first-time buyer is 40. A few steps can make the eventual purchase easier:
- Talk with a lender before you start looking, so you know your real monthly number at today’s rates.
- Learn the neighborhoods by living in them, walking them in winter and summer, and testing your commute.
- Decide what matters most: space, location, a short commute, or a building with strong finances.
- Keep a cushion for closing costs and the first year of ownership.
Now I want to hear from you
The NAR numbers tell us what happened nationally. They do not tell us what happened to you. I am asking my followers one simple question: how old were you when you bought your first place? I will share what I learn from your answers. If you are reading this on the blog, send me a message with your age and one sentence about what that first purchase was like. I would love to include your story.
Frequently asked questions
What is the average age of a first-time home buyer in 2025?
According to NAR’s 2025 Profile of Home Buyers and Sellers, the median age of first-time buyers is 40, an all-time high. First-time buyers made up 21% of all buyers, an all-time low.
How much do first-time buyers put down?
NAR reports a median down payment of 10% for first-time buyers, matching the highest level recorded since 1989. Repeat buyers put down a median of 23%.
Is it harder for first-time buyers to buy in Chicago right now?
In the core neighborhoods I track, inventory is thin and many condos are selling at or near original list price, which can make shopping competitive. Mortgage rates near 7% add to the monthly cost. Preparation helps, and I can walk you through the current numbers for the neighborhood you are considering.
Who is most likely to buy my home?
That depends on the home and the neighborhood. Nationally, 79% of buyers are repeat buyers and 21% are first-timers, so most buyers are not buying for the first time. I can look at who is buying in your specific neighborhood and property type.
A next step
If you are a renter wondering when it makes sense to buy, or a homeowner wondering who might buy your home, send me a message and I will pull the current numbers for you. No pressure, only real information. And if you would like market updates in your inbox, you can sign up for my newsletter here.
Source: National Association of REALTORS®, 2025 Profile of Home Buyers and Sellers, November 4, 2025.
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