Buying a home is a major milestone, traditionally considered a signifier of adulthood and stability. With housing prices and economic factors constantly changing, the question arises: At what age do most Americans buy their first home? And how does that compare to previous generations?
Traditionally, people buy their first home in their late 20s to mid-30s. This often lines up with getting a stable job, getting married or settling down, and wanting to start a family—all things that make you crave the space and security of owning a home.
However, the National Association of Realtors (NAR) reports that the average age of a first-time homebuyer in 2022 was 36 years old, up from 33 years old in 2021. It’s a record high figure for the country. The situation marks a departure from historical trends where homeownership was seen as a natural step earlier in life. Let’s delve into some other key statistics to paint a clearer picture:
Overall, the numbers highlight a trend of rising ages for first-time homeownership. This indicates a significant shift and a departure from the norm.
It’s true that today, homeownership rates among younger Americans are steeply declining. The reasons are varied: rising house prices, student debt burdens, later age of marriage, and changing attitudes towards ownership. Some of the key factors at play include:
So, is buying a house young still possible? Absolutely! While the path may look different than for previous generations, it’s achievable with careful planning, financial discipline, and a realistic understanding of the market. By taking advantage of resources like first-time homebuyer programs and getting guidance from a qualified realtor, you can turn your dream of homeownership into a reality—even if you’re young.
The truth is, there’s no single “ideal” age to buy a house. It’s a highly personal decision that hinges significantly on where you’re at in life and the steps you want to take in shaping your future. Rather than focusing on a specific number, consider these key factors:
Do you have a steady income, good credit, and savings for a down payment and closing costs? Homeownership is a costly endeavor, and even those who have financial stability may not want to take on the burden. Others may be unable to afford it until their financial situation improves.
Are you ready to settle down in one place for a few years? Does your career require flexibility to relocate? Even with the rise of remote work, homeownership is often seen as a secondary decision to career planning in the eyes of many young professionals today.
→ Here’s how to choose the best house location
Does owning a home align with your vision of the future, both personally and financially? Those who want to start a family may appreciate the security of homeownership, while those who crave adventure may see homeownership as a burden in their prime years.
Homeownership brings responsibility but also great rewards, like building equity and personalized living space. If you’re financially prepared, excited about the commitment, and understand the long-term implications, then the ideal age for you is when the time is right.
Buying your first home is a big deal. It’s exciting, maybe a little scary, and there’s a lot to figure out. Let’s break down the basics of what you’ll need to start your homeownership journey, regardless of what age you start at:
Don’t let the process intimidate you! There are a bunch of resources out there specifically designed to help young first-time homebuyers. Government programs like those offered by the Federal Housing Administration (FHA) often have more flexible credit requirements and lower down payment options.
Your state or city might also have programs with down payment assistance or grants. A quick online search with your location can shed light on these options. And don’t forget that working with a knowledgeable realtor is key—they can guide you towards programs and properties that might be a good fit.
→ Here 11 documents you need for a mortgage application
Sure, renting an apartment with your friends has its perks. But when it comes to building long-term wealth and stability, buying a home while you’re young offers some serious advantages.
Imagine each monthly rent check vanishing into thin air. Now, picture your mortgage payments going towards something you own. That’s equity: the portion of your home’s value that belongs to you. As you pay down your loan and your home’s value increases over time, your equity grows. It’s like a forced savings plan that can become a powerful financial asset.
Rent increases can be a major headache. With a fixed-rate mortgage, your monthly housing payment stays largely the same, giving you predictable budgeting. While property taxes and maintenance exist, homeownership can offer some insulation from the unpredictable rental market.
→ Learn more about the pros and cons of buying vs renting
Historically, real estate values tend to appreciate (increase) over time. Of course, there are no guarantees, but buying a home young means you get to benefit from potential long-term appreciation. Think of it as a slow-but-steady investment. For many Americans, it’s the biggest single investment they’ll ever make.
The government offers some sweet tax breaks to homeowners. You might be able to deduct mortgage interest and property taxes, which can equal big savings at tax time. It’s like getting a little reward for being a responsible homeowner.
Want to paint the walls neon pink? Get a giant dog? Rip out that hideous carpet? As a homeowner, your property is your space to customize! No more nagging landlord or restrictions on how you live.
Of course, buying young isn’t easy. You’ll need that down payment, good credit, and the ability to manage maintenance costs. It’s a big commitment. But, if you’re financially prepared and crave stability, the benefits can be huge.
Feel like you have your ducks in a row and are in a solid position to buy a house? Homeownership is a big step, but one that anyone can make at any age with the right preparation. Ask yourself:
If your answers lean towards “yes,” then the potential rewards of buying your first home at a young age could be well worth the effort. Just remember, buying a house is a marathon, not a sprint. With dedication and the right support system, you can cross that finish line and celebrate the immense satisfaction of owning your own piece of the American Dream.
When you list with Orchard, we’ll get your home show-ready and make repairs to increase your home’s value at no upfront cost.
Orchard guarantees your home will sell, so you can buy your next one worry-free.
On top of Orchard’s Home Sale Guarantee, we list, prep, and show your old home after you’re all moved out.
Use our home sale calculator to estimate your net proceeds.
Our Home Advisors are experienced local agents who know how to sell for top dollar and help win your dream home.
All Orchard Home Advisors are experienced agents who know your local market inside and out. Request a consult today.
Did you know cash offers are 4x more likely to be chosen by a seller? Let us help you make one on your next home.
Get the most accurate free home valuation — in minutes
Orchard Home Loans shops the market to find your best rates.
A cash offer is 4x more likely to be chosen by a seller. Get qualified today.
Make a cash offer now, and Orchard will sell your old home after you move.
Tell us your must-haves to see personalized home recommendations that meet your criteria.
With Orchard, secure your dream home before you list. Avoid home showings, rentals, and double moves.
Learn More