Delayed Life Milestones Push Young Americans to Buy Homes Later

An ongoing trend of young people delaying major life milestones—such as marriage, having children, and completing college degrees—is reshaping the housing market. According to the ResiClub blog, delays in these milestones are also pushing young people to buy homes later in life. In 2024, the average age of the first-time homebuyer was 38. Comparatively, in 1991, the average first-time buyer was 28 years old. While rising housing costs have contributed to this shift, lifestyle changes are equally influential, as people wait longer to make the life transitions that typically prompt homeownership.

Alongside delayed milestones, household sizes are also shrinking. With declining birth rates and more adults living alone or with fewer dependents, the number of one- and two-person households is growing, while larger households are steadily decreasing.

From a business standpoint, don’t fight the trend—today’s housing market isn’t going to suddenly revert to the 1970s or 1990s, when large numbers of early 20-somethings were entering homeownership. Demographic and lifestyle shifts mean that younger buyers are entering the market later, and that reality is here to stay (even if the median first-time homebuyer age of 38 in 2024 rolls over a little).

Agents, builders, and investors should pay close attention to the preferences of affluent 30-somethings—and increasingly, affluent 40-somethings. This group now represents a significant share of first-time homebuying activity, and importantly, many of them are poised to become repeat buyers in the years ahead. Understanding their needs today can build long-term customer relationships tomorrow.