The typical age of first-time buyers climbed to an all-time high of 40 years old according to the annual National Association of REALTORS® (NAR) 2025 Profile of Home Buyers and Sellers. This is nationally, not just in Southern California where we know young buyers are struggling to get into the market.
Taken from a recent article on NAR, "For generations, access to homeownership has been the primary way Americans build wealth and the cornerstone of the American Dream," said Shannon McGahn, NAR executive vice president and chief advocacy officer. "Delayed or denied homeownership until age 40 instead of 30 can mean losing roughly $150,000 in equity on a typical starter home."
I say this all the time. Real estate is the best way to build wealth, particularly for the middle class.
The Hill just had an op/ed piece offering some suggestions on what to do about this issue. Some of the ideas from this article and other sources I agree with include portable mortgage interest rates, assumable mortgage interest rates, incentives/reduced barriers for new construction and down-payment assistance programs for first-time buyers.
Something has to give but I also hate to see current home owners lose all their equity by decreased home prices. This is particularly an issue for retirees who are counting on that equity to sustain them through their retirement years. I am hopefully what gives isn't market prices. Creativity is the key to solving the problem.
