The path to homeownership has shifted massively over the past few decades.
Suzie Payne told Business Insider that she had pretty much given up on buying a home by the time she was 40 years old (1).
Payne was juggling raising a daughter on her own in Portland, Oregon, where home prices were out of reach.
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Fast forward to 2021: Payne moved to Philadelphia, got a new job, took first-time homebuyer classes and by the time she was ready to bid on a house in summer 2024, she was 42.
Payne calls her path “nonconventional,” but today, it’s actually far from unusual.
Known as ‘geriatric homebuyers’, first-time homebuyers are older than ever, and as Jessica Lautz, deputy chief economist at the National Association of Realtors told Business Insider, “We have a very large young-adult population who are really just seeing the door shut on them for homeownership."
The median age jumped to 40
According to the National Association of Realtors (NAR) annual Profile of Home Buyers and Sellers report, the typical age for first-time buyers in 2024 hit a record high of 40, and the median age for all buyers was 59 (2).
The number of first-time buyers has fallen to 24%, down from 32% in the year before. Of that, millennials, who are the largest U.S. population, dropped down to 29% of all buyers. Meanwhile, baby boomers have taken over, accounting for 42% of all buyers.
“I think it speaks to the gridlock that we’ve seen in the housing market,” Lautz said.
She estimates that delaying your first home to 40 from 30 years old could mean missing out on about $150,000 in equity. That’s money that could have gone toward a bigger home, your child’s education or retirement.
Older repeat buyers now have a median age of 62, and nearly a third of them pay all cash. Overall, 26% of all home purchases are cash deals, which is a record high (3).
Real estate agents like Peggy Pratt in Massachusetts see the squeeze firsthand. Student debt, skyrocketing rents and property taxes make it a struggle for young buyers to compete.
“For the prices, it’s nearly impossible for them,” Pratt told Business Insider.
What about starter homes? Agent Suzy Minken, who works in both New Jersey and Virginia, says younger buyers aren’t moving up anymore.
“The idea of move-up buyers, I think we’re sort of done with that,” she told Business Insider. “People that I’ve sold homes to over the years, no one’s moving up to get a bigger home.”
And as for the idea of the “silver tsunami,” that boomers are going to flood the market with their homes, it seems to be mostly hype.
Boomers plan to stay put, and many are even buying second homes. Homeowners are hanging on to ultra-low pandemic mortgage rates and the median length of stay in a home is at an all-time high of 11 years, according to NAR.
It all adds up to fewer listings, higher prices and a tougher market for everyone else.
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How this affects your wallet
With affordability being a struggle, shrinking inventory and cash buyers dominating, the wealth divide in real estate is widening.
Whether you’re a first-time buyer stuck on the sidelines or a long-time homeowner sitting on a mountain of equity, there are still smart ways to build wealth in today’s housing economy.
Younger buyers: Invest now, own later
If you’re under 40 and still renting, you’re not alone. But just because you can’t buy right now, it doesn’t mean you have to sit still:
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Max out your 401(k) and individual retirement account (IRA). Even if you can’t own a home yet, continue to build wealth through tax-advantaged retirement accounts in the meantime.
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Get real estate exposure in another way. Real estate investment trusts (REITs) give you exposure to the property market without needing a hefty down payment or the responsibilities of property ownership. Just keep in mind you’re exposed to interest-rate sensitivity and property sector risk.
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Consider cheaper zip codes. Remote work is still an option for some employees, and secondary markets may offer lower prices and less competition. Consider moving to a “forever home” in a different area code.
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Tackle student loans. Federal Reserve research shows that every $1,000 in student loan debt can drop the odds of buying a home by 1 to 2 percentage points (4), and roughly half of student debt carriers say that student debt is keeping them from buying (5). Speeding up your payoff is one way to boost your path to buying power.
Current homeowners: Turn equity into opportunity
Americans over 65 now control nearly 40% of U.S. housing wealth, worth about $19 trillion, according to Realtor.com (6). Savvy homeowners are leveraging their home equity using some of these strategies:
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Home equity lines of credit (HELOCs). With home prices still elevated, using equity for investments can unlock new income streams. Think rental properties, small business expansions or market investments.
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Hold a low-rate mortgage. If you scored a sub-4% mortgage, hold on. It’s basically cheap, fixed-rate leverage against an asset.
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Plan your next move now. Even if you’re planning to age in place, it’s worth reviewing your estate plan, long-term care options and where that home equity fits into your financial legacy.
Investors: Follow the money
While everyone else worries about housing inventory, investors are positioning for the next wealth cycle.
With many boomers aging in place and not selling, demand for assisted living, medical offices and age-friendly housing is on the rise. REITs in these spaces could see long-term tailwinds.
The companies managing all that generational wealth, whether it’s family offices or legal and advisory services, may flourish since about 95% of wealthy investors don’t have a wealth transfer plan or need to update one (7).
The housing market may feel like it’s impossible to get into, but that doesn’t mean it’s game over.
Suzie Payne’s story, and the rise of so-called geriatric homebuyers, proves that the dream isn’t dead, but it might be delayed. Whether you’re investing through REITs, stacking cash in your 401(k) or tapping the equity you already have, there’s more than one path to wealth in this market.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Business Insider (1); National Association of Realtors (2), (3); Federal Reserve (4); Best Colleges (5); Realtor.com (6); InvestmentNews (7)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.