What is the average age to buy a house? What's the best age?

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?

When do most people buy houses?

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:

• Generational comparisons: Historically, younger generations have become homeowners at earlier ages. Baby Boomers, for example, often bought homes in their mid to late 20s. In fact, nearly half of all Baby Boomers bought their first home between the age of 25 and 34.
• Urban vs. rural divide: Interestingly, there’s a growing gap between homeownership rates in urban versus rural areas. Young people in rural areas are more likely to own homes. They also have less mortgage debt than homeowners in other regions. 

Overall, the numbers highlight a trend of rising ages for first-time homeownership. This indicates a significant shift and a departure from the norm.

Buying a house when you’re young—is it still possible?

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:

• Affordability crisis: Skyrocketing home prices, particularly in major cities, have made it much harder for young people to save for a down payment. According to The Motley Fool the average home price in the U.S. was $417,700 in 2023. With mortgage rates surging, many young people simply don’t make enough to save for a down payment.
• Student debt: Crippling student loan debt prevents many young adults from qualifying for a mortgage or having enough for a down payment. The average student loan debt for the class of 2022 was a staggering $37,570 according to the Education Data Initiative. It’s an enormous financial burden that makes it even more difficult to save for a down payment on a home.
• Shifting priorities: Millennials and Gen Z may value experiences, travel, or career flexibility over homeownership in their earlier years. Unlike previous generations, many young adults today prioritize experiences and personal growth over settling down and buying a house in their early twenties and thirties.

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. 

What’s the ideal age to buy a house?

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:

Financial stability

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. 

Location and lifestyle

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

Long-term goals 

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.

What do you need to buy a house?

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:

• Solid credit score: Your credit history is like your financial report card. Lenders use it to see how responsible you are with money. Aim for a score in the good to excellent range (670+).
• Down payment: This is the cash you pay upfront. The bigger your down payment, the less you’ll borrow—and pay interest on. Shoot for at least 5-10%, but 20% is ideal to avoid extra fees.
• Low DTI: This stands for debt-to-income ratio. It’s how much debt you have (student loans, credit cards) compared to your income. Lenders want this number low.
• Proof of income: Paystubs, tax returns, and all documents to show you have a steady job and can handle a mortgage payment.
• Mortgage pre-approval: This is a letter from a lender saying how much they’re likely to loan you. It makes you a serious buyer when house hunting.

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

What are the benefits of buying a house young? 

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.

Building equity

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.

Protection against rising rents

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

Appreciation and your home as an investment

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.

Tax benefits

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.

Personalization and expression

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.

Is buying young right for you?

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:

• Am I ready to settle down in one place for a while?
• Can I comfortably handle the financial responsibilities?
• Do I have a solid support system if I need help with repairs or advice?

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.