The National Association of Realtors revealed in November that the average first-time home buyer in the United States is 40 years old, the oldest on record. And yet, the number of homeowners under 35 is actually increasing, especially among those living without mortgages, according to census data.
Between 2014 and 2024, the number of mortgage-paying homeowners younger than age 35 rose by 11 percent. But the number of homeowners in the same age group living without a mortgage increased by 56 percent, supporting research showing that early homeownership is becoming increasingly concentrated among the wealthy.
Hannah Jones, a senior economist at Realtor.com and the co-author of a study on generational wealth in real estate, said via email that the shift marks a convergence of several forces. Among them: The pool of younger shoppers is shrinking in favor of high-earning, financially prepared buyers. As mortgage rates and home prices increase, these buyers have an incentive and a competitive advantage to pay with cash.
Moreover, Ms. Jones said, because it’s taking people so much longer to save up for their first home purchase, parents are stepping in earlier so their children don’t get shut out of the market and its wealth-building opportunities.
But this is not just a story of wealth. Geography is another factor.
Nationally, 18 percent of homeowners under 35 own their homes outright. But the share is often higher in more affordable areas, including parts of the Sunbelt and Midwest, with a rise in younger mortgage-free homeowners who receive little or no help from family, Ms. Jones said.
In Farmington, N.M., nearly half of the 1,500 homeowners under the age of 35 are living without mortgages. The median listing price there is about 10 percent below the national average, according to Realtor.com data. Among the 50 most populated U.S. cities, a much smaller share of young homeowners own free and clear. Miami leads the pack at 24 percent, according to census data.