Why First-Time Homebuyers Are Waiting Until 38—And How to Make It Work for You

For generations, buying your first home was considered a milestone to be achieved in your 20s or early 30s. But times have changed.

According to the latest data from the National Association of Realtors, the median age for first-time homebuyers has climbed to 38 years old—a noticeable shift from just a decade ago, when it hovered in the early 30s.

This trend reflects broader changes in the housing market, economy, and societal expectations.

Delaying homeownership is no longer an uncommon decision—it’s quickly becoming the norm. But what does that mean for buyers entering the market later in life? And more importantly, how can those in their late 30s make homeownership work for them?

So, read on to explore the unique challenges and advantages of buying a home at this stage in life.

In this article (Skip to...)

• Why are first-time buyers waiting?
• Advantages of buying later in life
• Strategies to purchase a home
• The bottom line

Why are first-time buyers waiting so long?

Buy now, or wait? That’s the question prospective homeowners struggled to answer throughout 2024 and into 2025. A number of reasons have ultimately led many would-be buyers to wait.

Economic factors

The rising age of first-time homebuyers is not simply a lifestyle preference—it’s a reflection of economic reality.

Over the past decade, home prices have risen far faster than wages. In many metro areas, the cost of a starter home is well out of reach for younger buyers just beginning their careers.

At the same time, mortgage rates have increased significantly. After a period of historically low rates during the pandemic, the market has shifted. Monthly mortgage payments have grown, even for those with solid credit and strong down payments.

Student loan debt is another major factor.

Millennials and older members of Gen Z carry record levels of educational debt, which affects debt-to-income ratios and the ability to save. The burden of monthly loan payments delays many from being able to put money toward a down payment or qualify for a mortgage.

Cost-of-living increases have also hit hard, particularly in cities. Urban affordability has plummeted in recent years, forcing many would-be buyers to either delay the purchase or consider relocating to more affordable markets—often later in life.

Lifestyle and social shifts

Beyond finances, there’s been a cultural shift in how people approach adulthood milestones. Marriage and family formation are happening later, and many are prioritizing education, career advancement, and travel in their 20s and early 30s.

Remote work has also reshaped how people think about housing. With job flexibility increasing, many are taking more time to evaluate where they want to live—both in terms of lifestyle and long-term stability.

Additionally, there’s a growing acceptance of renting as a long-term solution, especially in urban areas. For many, renting is no longer viewed as a temporary step but as a lifestyle choice that offers mobility and lower maintenance responsibilities.

A shift in financial mindset

Today’s buyers are more financially cautious. Rather than rushing into a mortgage, many are taking time to save larger down payments, reduce debt, and improve their credit.

The goal isn’t just to buy a home—it’s to buy a home under the best possible conditions.

This mindset is producing more informed buyers who want to make strategic, long-term decisions instead of settling for a rushed purchase or overextending themselves financially.

The advantages of buying your first home at 38

While the delay in homeownership presents some challenges, it also brings meaningful advantages that younger buyers may not have.

Stronger financial stability

By their late 30s, most buyers have had time to build their careers, increase their incomes, and stabilize their financial situation. They’re more likely to have a strong credit score, higher savings, and a clearer picture of what they can realistically afford.

Many have already paid down student debt or structured their finances to accommodate a mortgage. This can translate into better loan terms and more favorable interest rates—especially when paired with a healthy down payment.

More years in the workforce often means greater financial confidence and the ability to weather unexpected expenses, such as home repairs or property tax increases.

Better home choices

Buying later in life often means buying smarter. These buyers are typically more selective, willing to wait for the right property, and less likely to compromise for the sake of simply getting into the market.

Rather than settling for a starter home in a less desirable location, buyers in their late 30s may be able to afford a home that better aligns with their long-term goals. This includes move-in-ready homes, homes in preferred school districts, or properties in established neighborhoods.

That longer runway also gives buyers time to research the market, understand local trends, and work with agents who can help them make informed decisions.

More mortgage options and favorable terms

With a longer financial history, buyers at this stage often qualify for a wider range of loan products. They may have access to conventional loans with better terms, or they might explore programs designed for first-time buyers that offer down payment assistance or reduced closing costs.

Improved credit, higher incomes, and stable employment open the door to more competitive interest rates. For buyers looking to maximize affordability or reduce the total cost of the loan, that can make a significant difference.

Additionally, established financial habits often mean better budgeting and long-term planning, making the transition to homeownership smoother and more sustainable.

Lifestyle alignment

Buying in your late 30s means you’re more likely to know what you want—and need—in a home. Whether that’s space for a growing family, a home office, or proximity to schools and amenities, this stage of life often brings clearer priorities.

Unlike younger buyers who may end up selling or upgrading in a few years, buyers at this stage are often looking for a home they can stay in for the long term. This creates an opportunity to skip the starter home phase and focus on a purchase that truly fits their lifestyle.

How to make homeownership work in your late 30s

The challenges of rising home prices, higher mortgage rates, and student loan debt have made buying a home more challenging. Fortunately, there are strategies you can adopt to tackle these obstacles and turn your homeownership dreams into reality.

Step 1: Boost your financial readiness

Start by reviewing your credit profile and working to improve your score if needed. A higher score can unlock lower interest rates and better mortgage terms.

Even if you’re buying later, you may still qualify for first-time homebuyer programs. Many state and local programs don’t have age restrictions and offer grants, forgivable loans, or tax incentives for first-time buyers, regardless of when they’re buying.

Consider optimizing your savings by using high-yield savings accounts or short-term investment vehicles to grow your down payment more quickly. Working with a financial advisor can also help you balance your homeownership goals with retirement planning.

Step 2: Rethink your housing strategy

If affordability is a concern, look beyond traditional housing markets. Secondary cities, emerging suburbs, and rural areas may offer better value and long-term growth potential.

Co-buying with a friend, partner, or family member can be a viable solution, especially in high-cost markets. Shared ownership structures can help split the burden of the down payment and mortgage while increasing your buying power.

Don’t overlook alternative financing methods. Shared equity programs, rent-to-own models, and private lending partnerships are all tools that can help buyers break into the market, especially when traditional routes feel out of reach.

Step 3: Time the market smartly

While no one can predict market shifts with certainty, staying informed about interest rate trends and local market conditions can help you make strategic decisions.

Purchasing during a market slowdown or in the off-season may give you more negotiating power and access to properties that might otherwise be out of reach.

Choose a real estate agent who understands the unique needs of late first-time buyers. They can help you identify overlooked opportunities, negotiate favorable terms, and make a purchase that aligns with your long-term goals.

Overcoming the challenges of delayed homeownership

Here are three common hurdles of delayed homebuying, along with practical solutions to help you overcome them.

Hurdle #1: Competing with younger buyers

Buyers in their late 30s may still find themselves in competition with younger buyers, particularly in popular markets.

To stand out, be prepared with a strong pre-approval, flexible terms, and a knowledgeable agent who can act quickly when the right opportunity arises.

Writing a compelling offer letter and offering quick closing timelines can also help make your offer more appealing, even if it’s not the highest bid.

Hurdle #2: Shorter mortgage terms

One consideration for older buyers is whether to choose a shorter loan term.

A 15- or 20-year mortgage may be more attractive if retirement is within 20–25 years. While the monthly payments are higher, the overall interest paid is significantly lower, and the home will be paid off sooner.

This decision should be balanced with your other financial goals, including saving for retirement, supporting dependents, or investing in other assets.

Hurdle #3: Retirement planning and homeownership

Buying a home later in life means you’ll likely still be paying off your mortgage during your peak retirement saving years. It’s critical to ensure that your home purchase doesn’t derail long-term financial security.

Work with a financial planner to evaluate how your mortgage will affect your retirement timeline, and be conservative in your borrowing to ensure flexibility in your later years.

Consider future maintenance costs, property taxes, and lifestyle needs as part of your homeownership equation—not just the purchase price.

The bottom line: Embracing the benefits of buying later

There’s no one-size-fits-all timeline for homeownership. While many buyers now wait until 38 or older to purchase their first home, this delay doesn’t have to be a disadvantage.

With the right preparation, late first-time buyers can make smarter choices, access better financing options, and purchase homes that truly align with their long-term goals.

In many ways, buying later in life provides an opportunity to approach homeownership with clarity, confidence, and financial strength.

If you’re considering your first home purchase in your late 30s or beyond, remember that it’s never too late to build stability and equity. With thoughtful planning, a strong financial foundation, and the right guidance, homeownership can still be a powerful tool for building wealth and creating a place to call your own.