With 140 million Americans entering peak buying years and only 26% of Gen Z owning a home, Huntsville could see surging demand — and higher prices — in the years ahead.

The average age of first-time homebuyers in the U.S. has reached a record high of 38, up from 35 just last year. In the 1980s, the median first-time buyer age was 29. Today, they make up just 24% of all home purchases, the lowest level since recordkeeping began in 1981.

This trend matters because homeownership remains the primary path to wealth for most Americans. Homeowners have 40 times the net worth of renters, but affordability challenges are delaying purchases and, in turn, delaying major life milestones like marriage and starting a family. Lower homeownership also impacts community engagement, as owners tend to be more invested in local neighborhoods.

Several factors are driving the shift. Rising home prices, elevated mortgage rates, and increased living costs have put ownership out of reach for many. In some markets, entry-level homeownership costs nearly twice as much as renting, before factoring in the tax benefits and long-term appreciation. Student debt, wage stagnation in certain sectors, and down payment requirements add to the challenge.

By the Numbers: First-Time Homebuyer Trends

38 – Average age of U.S. first-time homebuyers in 2024, up from 35 in 2023
29 – Average first-time buyer age in the 1980s
24% – Share of all U.S. home purchases by first-time buyers (lowest since 1981)
40x – Net worth advantage homeowners have over renters
26% – Gen Z homeownership rate (compared to ~60% for Baby Boomers at the same age)
40 million – Americans entering peak homebuying years over the next decade
26% – First-time buyers receiving family down payment help in 2024, up from 18% in 2019

Younger buyers are increasingly relying on family help. In 2024, 26% of first-time buyers received down payment assistance fromrelatives, up from 18% in 2019. At the same time, demand is building — 140 million Americans will enter peak homebuying age over the next decade, but only 26% of Gen Z currently own a home.

Potential solutions include removing property taxes for first-time buyers (and all homeowners), eliminating private mortgage insurance (PMI), ending Fannie Mae’s conservatorship to encourage competition and lower fees, expanding affordable housing, and offering creative co-investment programs for those without a down payment. Eliminating corporate bulk purchases of single-family homes could also help level the playing field.

The good news for Huntsville is that affordability remains better here than in many other U.S. markets — for now. With strong job growth and an increasing population, the window for first-time buyers to get in before prices climb further may be closing.