There are now more homebuyers over age 70 than under 35

Breaking into the housing market has become a steep uphill battle for younger generations in recent years. Elevated mortgage rates, coupled with soaring property values, have made the prospect of buying a first home feel increasingly out of reach for many millennials and members of Gen Z.

The trend is visible in the numbers. In 2024, there were more homebuyers over the age of 70 than under 35, according to data from the National Association of Realtors (NAR). Older baby boomers, born between 1946 and 1954, made up 22% of buyers, while younger millennials (born 1990–1998) accounted for just 14%. Gen Z buyers (born 1999–2011) represented an even smaller share at 5%. Deutsche Bank’s head of global macro research, Jim Reid, noted that nearly half — 46% — of all homes sold in 2024 went to buyers aged 60 and above.

This is a sharp departure from historical norms, where younger adults dominated the entry-level homebuyer segment. Back in 1991, the median first-time buyer was just 28 years old. By 2024, that figure had climbed to 38. The overall median age of homebuyers has also surged, hitting a record-high of 56 last year, up from 46 in 2021, according to NAR data cited by Apollo Academy Chief Economist Torsten Sløk. High borrowing costs and record home prices have driven much of this demographic shift.

For decades, homeownership has been a cornerstone of the American dream — a milestone representing stability, financial security, and long-term wealth building. Properties often become a household’s largest asset, offering equity that can be leveraged for future purchases or retirement. “Over the long run, property is an asset that ultimately gets redistributed from one generation to the next,” Reid wrote. Yet many younger adults are finding themselves locked out of this cycle.

Reid points to high interest rates and inflated prices as the main obstacles delaying this generational handoff. Unless one or both factors adjust — or younger workers see substantial wage gains — the imbalance will persist. Unfortunately, wage growth has lagged far behind housing costs. A 2024 U.S. Treasury report found that rents and home prices have consistently outpaced incomes across most regions, squeezing affordability even further.

As of April, the income needed to purchase a median-priced home was roughly $114,000, according to Realtor.com — more than double the average U.S. salary. “The income needed to buy a home in the U.S. remains significantly higher than before the pandemic, underscoring the ongoing challenge of affordability even as market conditions gradually rebalance,” said Danielle Hale, Realtor.com’s chief economist.

While the current outlook is discouraging for Gen Z and millennials, Reid believes their entry into the market is inevitable over time. Whether through shifts in pricing, interest rates, or generational wealth transfers, younger buyers will eventually claim a larger share of homeownership — but the path there may be far longer and more challenging than it was for previous generations.