The median age of US homebuyers is a shocking 56 years old — it was 31 in 1981. Here’s why that’s a big problem

Grey housing market

Not only are older Americans more likely to buy homes, but many own some of the largest properties on the market.

According to a January 2024 report by Redfin, 28.2% of three-bedroom-plus homes across the country were owned by empty-nest baby boomers. That’s compared to just 14.2% for millennials with kids.

The report suggests that baby boomers were in their prime earning years during the 1990s economic boom when newly-built homes were remarkably abundant. Home values have since shot up, and Americans who purchased homes more than 20 years ago didn’t have to spend as large of a portion of their income to buy property as they would today.

For younger buyers, this might feel like game over, but it isn’t necessarily. Here’s how you can boost your chances of getting onto the property ladder.

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Improving your chances

If you’re in your 30s or 40s, it may feel as though the odds are stacked against you if you’re aiming for homeownership. Although the NAR data shows the median age of first-time buyers was 38 in 2024 (29 in 1981), this cohort only purchased 24% of homes compared to 32% a year earlier.

Nevertheless, with some planning and consistency or creative thinking, you could improve your chances. Start with aggressive saving and budgeting. Cutting back on non-essential spending — even by just $200 a month — can add up to $2,400 a year.

Pair that with steady investing in stocks or low-cost index funds and you can start accumulating funds for a downpayment.

Many young buyers also lean on the “Bank of Mom and Dad” if your parents are able to extend some financial security. About one-third of younger millennials (ages 26-34) who bought a home received assistance with their down payment through a gift or loan from a friend or family member, per a 2025 report by NAR.

You could also consider broadening your geographic search. Consider relocating to more affordable markets. Use first-time buyer programs and state-level assistance. FHA loans can cut required down payments to as little as 3.5%, according to the U.S. Department of Housing and Urban Development.

Buying a home may seem challenging for younger generations, but with the right financial planning it’s still within reach.