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The age of first-time homebuyers reached a new high, underscoring the significant financial hurdles faced by those attempting to enter the housing market.
The first-time homebuyers’ median age reached 38 years old, according to the National Association of REALTORS®' (NAR) annual survey of buyers and sellers. That's up from 35 years old last year and up significantly from the 1980s when the typical first-time homebuyer was in their late 20s.
This record comes despite first-time home buyer's household income growing by $26,000 over the past two years, further illustrating the hardships of entering the housing market.
Overall, the ages of first and repeat buyers reached an all-time high with the median buyer age reaching a peak of 56 years old, up from 49 last year, according to NAR. The typical repeat buyer also rose to 61 years old, up from 58 last year.
"For older first-time buyers, they likely had to save for longer periods of time, amid a higher-inflation economy, while paying down other debt such as student loans, car payments and credit card debt," NAR Deputy Chief Economist Jessica Lautz told FOX Business. "They may have even been actively looking for a property to purchase but had many offers fall through because all-cash buyers won housing bids."