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For many young Americans, buying a first home is now a dream deferred. The average first-time buyer is 38, up from the historical range of 29 to 33, according to the National Association of Realtors.
“First-time buyers face high home prices, high mortgage interest rates and limited inventory, making them a decade older with significantly higher incomes than previous generations of buyers,” said Jessica Lautz, NAR deputy chief economist and vice president of research, in 2024 (1).
Meanwhile, existing homeowners use equity to secure dream homes with cash or large down payments.
Younger buyers face several challenges.
Rising property values nationwide make it tough for those with limited savings or student debt to afford down payments. Higher mortgage rates further increase monthly costs, pricing many out of the market. Affordable housing options are also scarce, as builders focus on luxury homes while sellers hold onto properties longer, shrinking inventory and driving up prices.
Building a strong financial foundation is just the first step — finding a good mortgage can be just as critical. Shopping around for rates can save you thousands over the life of your loan, and comparing multiple offers ensures you’re getting the best deal possible.
Improving your credit score, reducing debt, and saving strategically can secure better loan terms and lower interest rates, making a home more attainable.
Next, it’ll be vital to address any financial roadblocks that might stand in your way. If paying down debt is your priority, speaking with a financial advisor can help.
Finding the right advisor is simple with Advisor.com. Their platform connects you with licensed financial professionals in your area who can provide personalized guidance.
A professional advisor can also help you determine how many years you have left to invest before retirement and assess your comfort level with market fluctuations—two key factors in building the right asset mix for your portfolio.
Through Advisor.com, you can schedule a free, no-obligation consultation to discuss your retirement goals and long-term financial plan.
