If it feels like first-time homebuyers are older now than they used to be, you are not imagining it. According to the 2025 Profile of Home Buyers and Sellers from the National Association of REALTORS®, the median age of first-time homebuyers is now 40. That is the highest age on record.

Last year it was 38. Back in the 1980s, the median age was in the late 20s. The shift has been massive over the last few decades, and it reflects the financial and market realities buyers are facing in 2025.

So what changed?

Buying a home really is harder today

The same NAR report shows that first-time buyers now represent only 21 percent of home purchases, the lowest share ever recorded. Historically, that number has hovered around 40 percent. In other words, fewer people are breaking into homeownership, and those who do are doing it later in life.

Today’s successful first-time buyers in the Raleigh-Durham-Chapel Hill area are saving longer, paying higher rents while trying to build cash reserves, and navigating financial challenges that previous generations did not face.

The divide between first-time buyers and repeat buyers keeps growing

While the share of first-time buyers shrinks, repeat buyers dominate the market. They are older, they have equity, and they are better positioned to compete.

Here is what the data shows:

• Median age of repeat buyers is now 62
• Nearly 30 percent of repeat buyers paid all cash compared to just 8 percent of first-time buyers
• Repeat buyers made median down payments of 23 percent, while first-time buyers put down 10 percent, the highest first-time down-payment figure since 1989

With more cash and more equity, repeat buyers are able to move faster and negotiate harder, especially in markets where homes are still selling close to and above list price. In 2025 thus far, buyers on average paid 99 percent of asking price.

That makes it tougher for first-time buyers in cities like Raleigh, Cary, Apex, and Wake Forest, where desirable homes frequently attract multiple offers.

Why it takes longer to buy a first home now

Several market forces are working against first-time buyers across the Triangle and surrounding towns.

Higher interest rates

The average rate during the study period was 6.69 percent, which keeps monthly payments significantly higher than during the pandemic period.

Limited affordable inventory

A large percentage of new listings are in higher price ranges, especially in developing areas like Holly Springs, Fuquay-Varina, Clayton, and Pittsboro. Traditional “starter homes” are harder to find.

Student loans and high rent

Among first-time buyers who succeeded:

• 59 percent used personal savings
• 26 percent tapped 401(k)s or stocks

Saving while paying rent and student loans is difficult, so it takes longer for many buyers to be ready.

Put all of this together and the median first-time buyer age of 40 makes a lot of sense.

Why repeat buyers have the advantage

Repeat buyers have benefited from more than a decade of home value appreciation. They have typically owned their current homes for 11 years, and many now have significant equity.

That equity translates into major advantages:

• Some repeat buyers purchase with cash
• Many borrow lower amounts on their next property
• They can act faster and more competitively

With strong equity positions, they navigate multiple-offer situations with confidence that first-time buyers cannot always match.

What first-time buyers can do to succeed

If you are buying your first home in the next year or two, you are not out of the game. Here are smart strategies that can help you compete and win.

1. Explore down-payment assistance programs

North Carolina offers programs and grants that can cover part of your down payment or closing costs if you qualify.

2. Ask lenders about creative financing options

Many lenders offer temporary rate buydowns or 2-1 buydown structures to ease initial payments.

3. Look at new construction

Builders in areas like Clayton, Apex, Holly Springs, and Fuquay-Varina are offering incentives including rate buydowns, closing credits, and upgrades.

4. Consider multi-generational living

14 percent of buyers in 2025 purchased multi-generational homes to save on housing costs or care for family members.

5. Work with an experienced real estate agent

88 percent of buyers used an agent in 2025, and the top benefits cited were finding the right home faster and negotiating better terms. Negotiation experience matters even more when every dollar counts.

The bottom line for first-time buyers

Homeownership looks different today than it did decades ago, but it is still within reach. The average first-time buyer is older not because the dream has faded, but because buyers today are more strategic, more prepared, and more financially thoughtful before making a move.

If you plan to buy in the next year or two, start planning early. I am here to guide you through financing options, down-payment assistance programs, new construction incentives, and every advantage available in our local markets.

When you are ready to go from “someday” to “sold,” I am here to help you take the next step with confidence.

Thanks for reading!

Brandon Yopp