Owning a home is a big milestone, and the homeownership rate by age shows just how much timing matters. Younger adults have the lowest ownership rates, while rates rise through midlife and reach their highest levels near retirement. These trends help renters plan ahead and better understand how economic conditions influence the housing market.
What Is the Homeownership Rate by Age?
The homeownership rate by age measures the percentage of people within a specific age group who own a home. The National Association of Homebuilders publishes data on this rate, and the National Association of REALTORS® (NAR) breaks it down further by generation and buying behavior.
Recent numbers highlight the connection between age and homeownership. About 65.3% of households nationwide owned their homes. However, that number varies dramatically by age group. A new NAR study shows buyers are getting older. The median home buyer age hit 56, up from 49 just a year earlier. First-time buyers are now 38 on average, and repeat buyers are typically 61 years old.
- Among new homeowners who have been in their homes for less than 3 years, the average age is 46 years; the median age is 42.
- 65- to 74-year-olds have the highest homeownership rate among all age groups at 79.5%.
- The median age among homeowners has increased by 21.3% since 2001.
- 56.9% of homeowners aged 30 to 34 have been in their homes for 3 years or less.
| Age Range (Years) | % of Homeowners | % of Age Group |
|---|---|---|
| Under 25 | 0.8% | 24.8% |
| 25 – 29 | 3.1% | 35.8% |
| 30 – 34 | 5.9% | 49.2% |
| 35 – 44 | 15.7% | 62.0% |
| 45 – 54 | 19.0% | 70.6% |
| 55 – 64 | 23.4% | 75.1% |
| 65 – 74 | 18.5% | 79.5% |
| 75+ | 13.6% | 79.1% |
Age Group & Homeownership Trends
With age often comes higher income, new family needs, and greater financial security. The data shows that homeownership rates rise steadily in accordance with these factors. Here’s a closer look at how each generation participates in the housing market:
Ages 18–25 (Gen Z): Gen Z buyers made up just 3% of recent home buyers, with most entering the market for the first time. They have the lowest household incomes and are least likely to be married or have children, which often keeps them renting longer. Many Gen Zers moved directly from a family member’s place before buying their own home.
Ages 26–34: Younger Millennials account for 12% of buyers and are the most likely to be first-time homeowners. Younger Millennials tend to buy smaller, older homes near their place of work, prioritizing affordability and commute time.
Ages 35–44: Older Millennials represent 17% of recent buyers; this group is in the midst of their prime earning years, with a median household income of $127,500. Most are move-up buyers purchasing larger homes, and 66% are married couples. Many have children, making school quality and neighborhood safety key considerations.
Ages 45–59: Gen X accounts for 24% of home buyers and has the highest median household income. Therefore, they can afford to purchase bigger homes, with many choosing multi-generational living arrangements to accommodate aging parents or adult children.
Ages 60–69: Younger Boomers make up 26% of buyers. Many are downsizing, moving closer to family, or choosing homes that will suit them through their retirement. They often purchase homes in small towns and expect to stay put for a while.
Ages 70–78: Older Boomers represent 16% of buyers, often seeking low-maintenance homes, suburban locations, or senior-friendly housing. They typically move the farthest distance (around 35 miles) when buying.
Ages 79+: The Silent Generation represents just 4% of buyers; these older adults are most likely to choose senior-related housing and to prioritize proximity to healthcare facilities. They purchase the smallest homes and often pay in cash.
Historical Changes in Homeownership by Age
The age of home buyers has been steadily rising for decades. In the 1980s and 1990s, it was common for first-time buyers to purchase homes in their late 20s or early 30s. By the early 2000s, that average had already crept into the mid-30s.
Several long-term trends have contributed to this shift. Rising home prices and stricter lending standards have made it harder for younger buyers to qualify for a mortgage. At the same time, many adults are waiting longer to get married, start a family, or settle into a career, all of which are significant milestones that often lead to homeownership.
Another major factor is that older generations are holding onto their homes longer. Baby Boomers, in particular, are aging in place and downsizing later than expected, which reduces available inventory for younger households.
Taken together, these forces demonstrate how the path to homeownership has shifted later in life. While younger buyers are still entering the market, the “typical” first-time homeowner today is older than at any point in the past.
| Age Range | Homeownership Rate Change 1993 – 2009 | Homeownership Rate Change 2009 – 2019 |
|---|---|---|
| Under 25 | +67.1% | -32.2% |
| 25 – 29 | +17.9% | -25.0% |
| 30 – 34 | +6.4% | -15.2% |
| 35 – 44 | +4.4% | -14.1% |
| 45 – 54 | -0.1% | -10.6% |
| 55 – 64 | +0.1% | -8.4% |
| 65 – 74 | +1.7% | -4.0% |
| 75+ | +7.1% | -1.2% |
| All Age Groups | +5.7% | -6.3% |
Analysis of Homeownership Among Age Groups
Looking across generations, clear patterns emerge in how and when people buy homes. Younger adults, particularly Gen Z and younger Millennials, face affordability challenges and delayed timelines due to lower incomes, student debt, and higher interest rates. As a result, this group enters the market later than past generations and often prioritizes affordability and location over size or amenities.
Mid-career buyers, older Millennials, and Gen X have the highest purchasing power. With larger household incomes and established careers, they are more likely to upgrade into larger homes and buy in school-focused neighborhoods. Their activity drives much of the “move-up” market.
Older buyers, including Boomers and the Silent Generation, tend to downsize or purchase homes that meet retirement and lifestyle needs. Because many already own property outright, they exert less pressure from financing costs but still influence supply. Their decision to hold onto homes longer has ripple effects for younger buyers, who struggle with limited inventory.
Key Factors That Influence Homeownership by Age
Several forces shape whether people in different age groups can, or want to, own homes. Some factors include personal finances as well as broader economic trends. Mortgage rates are significant right now. The rates act like a gatekeeper for who can afford to buy and when.
Current Mortgage Rates & Affordability
As of this publication date, a 30-year fixed mortgage rate is around 6.35%. Even small changes in rates can add hundreds of dollars to a monthly payment, which can make or break affordability for younger buyers.
Affordability is a growing challenge: 77% of U.S. households cannot afford a median-priced new home under current rates and prices ($495,750 is the median price of a new single-family home in the U.S.).
How Age Groups Are Affected
Gen Z (18–25): About 62% of Gen Z buyers are first-timers, often entering the market with limited savings and lower incomes. High interest rates disproportionately affect them because they have no home equity to roll into their purchase.
Younger Millennials (26–34): 71% are first-time buyers and typically face student loan debt (median of $30,000) that limits their borrowing capacity.
Older Millennials (35–44): While more financially established, 36% are still first-time buyers, and higher rates may delay their ability to buy a larger “forever home.”
Gen X (45–59): As mentioned earlier, Gen X earns the highest median household income ($130,000), giving them more buying power and some protection against rising rates. However, they are also competing for limited inventory.
Boomers & Silent Generation (60+): Many in these generations already own homes outright. While less affected by mortgage rates when buying with cash, they do feel affordability pressure in terms of property taxes and downsizing options.
Other Influencing Factors
- Housing prices: Rising prices in many metro areas make saving for a down payment challenging for younger buyers.
- Life stage: Marriage, children, and job stability all drive buying decisions. Typically, generations in their 30s and 40s.
- Supply constraints: Homeowners with very low fixed rates often stay put (known as the “lock-in effect”), which reduces available inventory and pushes prices higher.
Frequently Asked Questions About Homeownership Rate by Age
What percent of people are homeowners by age?
About 65.6% of U.S. households own their homes, but the rate varies widely by age. Homeownership is lowest for adults under 35 (around 36.3%) and highest for those over 65, where more than 79.5% own their homes.
Are homeownership rates falling?
Homeownership rates dipped slightly during periods of rising interest rates, but they have stabilized as the market adjusts. Younger generations are buying later in life than previous generations, but they are still entering the market.
How many 24-year-olds own a home in the U.S.?
The share of homeowners under 25 is roughly 26.1%, and most of them are first-time buyers. Many Gen Zers live with relatives or rent while saving for a down payment, often waiting until their late 20s to buy a home.
What age group owns the most property?
Baby Boomers (ages 60–78) own the largest share of U.S. housing wealth. They also represent the largest group of home sellers, which means their decisions about when to downsize or relocate can significantly affect available inventory for younger buyers.
