America’s first-time homebuyer is now 40 — a warning sign for the middle class

For the first time on record, the median age of a first-time homebuyer in America is 40 years old, up from 38 last year. That milestone isn’t just a housing statistic. It’s a warning sign for the middle class and the broader economy. With the average homeowner’s wealth now 43 times that of a renter, this ever-narrowing path to homeownership threatens the very basis of upward mobility. And according to our new data, first-time buyers account for a historic low of just 21 percent of all home purchases. Without renewed access to homeownership, there can be no true American comeback.  The top challenge that first-time buyers face, according to Realtors, is a lack of available homes. And our data backs that up — estimating a 4.7 million unit shortage nationwide. It is a roadblock that has left an entire generation — ready to start families, build equity and put down roots — stuck renting and saving while prices climb and affordable options remain scarce. “The historically low share of first-time buyers underscores the real-world consequences of a housing market starved for affordable inventory,” National Association of Realtors Deputy Chief Economist Jessica Lautz explains. “The share of first-time buyers has contracted by 50 percent since 2007 — right before the Great Recession. The implications for the housing market are staggering. Today’s first-time buyers are building less housing wealth and will likely have fewer moves over a lifetime as a result.” This isn’t just about delayed home purchases; it’s about lost opportunity. A 10-year delay in buying a typical first home can mean losing more than $150,000 in potential equity growth. Homeownership remains the number one way families build and pass on wealth. When access to that ladder narrows, so does the promise of upward mobility. Our organization has been pressing policymakers for years to take this crisis seriously. We have advanced bipartisan policies that would expand access to ownership, promote more housing construction and unlock affordable supply: down-payment assistance for first-generation buyers, credit-scoring reform, assumable mortgages, modernized FHA and VA programs, and tax incentives for starter-home construction. We have supported legislation such as the More Homes on the Market Act and the ROAD to Housing Act, which would free up existing inventory, improve financing options, and streamline outdated zoning and permitting barriers that are choking new development. A bipartisan group of lawmakers is already stepping up to meet the challenge. The four co-chairs of the bipartisan Real Estate Caucus recently introduced the Saving the American Dream Act, which would create the first-ever interagency task force to coordinate a whole-of-government response to the housing affordability crisis. The bill already has more than 23 bipartisan co-sponsors — a clear sign that solutions to America’s housing shortage can, and must, transcend party lines.  But this isn’t just a Washington problem. It will take both private action and coordination at every level of government. Nor is it a partisan issue, but a generational one. Policymakers from both parties must act with the same urgency that built the postwar middle class. To date, the VA home loan program alone has helped 28 million veterans achieve homeownership. Aligning tax policy, lending standards, and supply-side incentives will restore affordability and opportunity for first-time buyers. The U.S. does not have a demand problem; it has a supply problem — one that threatens to erode the economic foundation that homeownership provides. If we continue down this path, America risks becoming a nation where owning a home — the defining marker of stability and success — is reserved for the few, not the many. Our policymakers must act to revive homeownership and ensure the dream endures for generations to come. Shannon McGahn is executive vice president and chief advocacy officer for the National Association of Realtors.