The common first-time purchaser is 40, the oldest on document. Why which means many People begin homeownership $150K behind

Shopping for your first dwelling at 40 doesn’t make you late. It simply means you’re a part of the brand new regular.

In response to the Nationwide Affiliation of Realtors (NAR), the median age for first-time consumers hit a document 40 in 2025 (1).

Much more regarding, NAR estimates that delaying a primary dwelling buy till age 40 fairly than age 30 may price you about $150,000 in misplaced starter-home fairness (2).

Historically, first-time homebuyers had been of their late 20s or early 30s (1, 2). However the climb to the age of 40 displays bigger pressures: increased dwelling costs, steep mortgage charges and restricted reasonably priced stock. Starter houses are in brief provide or overpriced. First-timers made up solely 21% of dwelling purchases in 2025, the bottom on document (1).

Affordability is one other hurdle. First-time consumers had a median family revenue of $94,400 in 2025, nicely above the nationwide median of about $81,600. That means solely higher-earning households are managing to interrupt into homeownership (2).

Then there’s the down fee. The median for first-timers hit 10% in 2025, the best since 1989 (3). On prime of that, 37% of first-time homebuyers carried pupil mortgage debt, which might push again timelines or decrease buy budgets (4).

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The estimated $150,000 in misplaced fairness isn’t only a quantity. It represents missed years of appreciation, mortgage paydown and compounding good points. Yearly you wait, there’s much less time on your dwelling to develop in worth alongside you.

Jessica Lautz, NAR’s deputy chief economist and vp of analysis, says that in the present day’s first-time consumers could construct much less housing wealth over their lifetimes and sure make fewer strikes because of this (3). Shopping for later can even imply carrying your mortgage into your retirement years. With fewer years to learn from market development, that may be a monetary pressure if the acquisition acts extra like a life-style choice than a wealth-building one.

When you’re approaching 40 and contemplating homeownership for the primary time, right here’s assume it by:

Begin with life-style, not simply funding. Shopping for later is usually about stability, location and luxury greater than huge fairness good points. In case your major objective is constructing wealth, know that the clock began earlier for consumers who bought of their 20s or early 30s. Afford the total price of possession. Look past the mortgage. Taxes, insurance coverage, upkeep, repairs and utilities all matter, particularly with fewer years to unfold out bills. Acknowledge the fairness hole. It could be powerful to catch as much as somebody who has had a decade or extra of dwelling fairness development. NAR estimates that hole might be close to $150,000, over a lifetime (2). Evaluate renting and shopping for truthfully. You probably have low hire and don’t plan to remain lengthy, renting could give extra flexibility with much less threat. Shopping for shines if you anticipate to place down roots and may comfortably deal with the prices. Preserve expectations real looking. Dwelling values don’t at all times rise rapidly. Shopping for at 40 nonetheless provides you years to construct fairness, simply not as many as youthful consumers.

Above all, make the choice deliberately. When you purchase primarily based in your life-style, long-term stability and what you may afford as a substitute of hoping for quick appreciation, homeownership at 40 can nonetheless be deeply rewarding. It might not be about beating the market, however about creating a house you like and develop into.

We rely solely on vetted sources and credible third-party reporting. For particulars, see our editorial ethics and pointers.

NAR (1); Realtor.com (2); NAR (3); Training Knowledge Initiative (4).

This text supplies info solely and shouldn’t be construed as recommendation. It’s offered with out guarantee of any variety.