Homebuyers

Why It’s Never Too Late to Become a First-Time Homebuyer

For millions of Americans, homeownership has always been part of their plan for the future. Then the years go by, and that plan may feel increasingly unlikely.

But it isn’t.

The average age of first-time homebuyers has risen, with more Americans making their first purchase in middle age and beyond.

While a later start means fewer years building equity, it gives buyers time to improve their credit scores, come up with larger down payments, and have a clearer sense of what they need in a home.

“It’s rarely too late to invest in the market,” said Ryan Fitzgerald, owner and broker at Raleigh Realty in North Carolina. “Many buyers in their 40s, 50s, or even 60s find that the wait has allowed them to save more money, clarify their priorities, and enter the market with a better financial foundation.”

Here’s what older first-time homebuyers need to know, and why the timing may work more in their favor than they realize.

More Americans are buying their first home later in life

The average age of the first-time homebuyer is at an all-time high, and that’s not necessarily a bad thing.

The typical first-time buyer was 40 in 2025, according to the National Association of Realtors. That was up from 38 just a year earlier. And it represents a major jump from the late 1980s, when the typical first-time buyer was in their late 20s.

Why are homebuyers getting older? High home prices, rising rents, and student debt have made it harder for many buyers to save up for down payments and closing costs.

But when older buyers do arrive at the closing table, they are often better prepared than they would have been a decade (or two) earlier.

“Older buyers often have better savings than younger buyers, due to a lifetime of working and saving,” said Steven Gottlieb, a real estate agent at Coldwell Banker Warburg in New York City. “More liquidity on hand can put a buyer in a stronger position to make a larger down payment or pay all cash for a property.”

The advantages of homeownership at any age

While renting has its advantages, building someone else’s home equity isn’t one of them.

When you own your home, every mortgage payment reduces your loan balance and builds equity in an asset you control. And unlike a lease, the principal and interest on a fixed-rate mortgage won’t increase at renewal time.

Beyond the financial aspects, homeownership means the space is yours to make your own. So, you can paint the walls, renovate the kitchen, and create a space that reflects your life in a way renting doesn’t allow. That’s provided local laws and homeowners associations rules permit it.

“There is a sense of stability and permanence that comes with homeownership,” said Gottlieb.

Being an older homebuyer may work in your favor

Doing things later in life doesn't have to mean you’re falling behind. In many ways, it means you’re better positioned.

Buyers who choose to become homeowners in their 40s or 50s often have advantages that younger buyers are still working to build: more savings, higher incomes from being further along in their careers, stronger credit histories, and financial knowledge built over decades.

Many are also clearer on what they need in a home. That can translate into fewer costly mistakes.

“They have clarity, certainty, and conviction about what they want and need, and a sense of realism around what their budget can actually help them attain,” said Nikki Beauchamp, an associate real estate broker at Sotheby’s International Realty in New York.

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Buying a home and your retirement

For buyers closer to retirement, the question isn’t necessarily whether they should buy, but how to structure their mortgage smartly.

The good news is there are plenty of home loans available to accommodate their needs. Buyers who want to minimize long-term interest payments and pay off the home before they stop working can opt for a 15-year or 10- or 20-year loan term instead of the standard 30-year loans.

Monthly payments will be higher, but the interest savings are significant. And for many retirees, eliminating a mortgage payment entirely changes the math on retirement income.

“A fixed-rate mortgage is usually preferable because it avoids interest rate fluctuations,” said Veronique Perrin, a real estate agent at Coldwell Banker Warburg.

The bottom line: It’s never too late to buy your first home

When it comes to homeownership, there really is no expiration date.

No matter your age, buying a home means trading a monthly expense for a long-term asset that builds equity and may offer stability and control over how you live.

“One of my oldest first-time buyers was well into her 70s when she bought,” said Beauchamp. “Every buyer journey is so unique.”