First-Time Homebuyers Are Older Than Ever in 2025. Here’s What That Really Means.
It’s Not Just You — Buying a Home Really Is Harder
The share of first-time buyers dropped to 21%, the lowest ever recorded. Historically, it’s hovered around 40%. That means fewer people are getting that “first home moment,” and the ones who do are often:
Saving longer
Carrying more student loan and rent burden
Facing higher mortgage payments
Competing with cash-heavy repeat buyers
In other words:
People are still buying — it’s just taking longer to get there.
The Growing Divide Between First-Time & Repeat Buyers
Here’s where things get even more interesting:
Median age of repeat buyers: 62 (also a record high)
Cash buyers: Nearly 30% of repeat buyers vs. just 8% of first-timers
Down payments: 23% for repeat buyers vs. 10% for first-timers (highest since 1989)
This isn’t a level playing field.
Repeat buyers have something first-timers simply don’t: equity. And after owning for an average of 11 years, that equity is doing a lot of heavy lifting. Some are even bypassing financing altogether, which makes competing tough — especially in communities around Palm Springs, Palm Desert, and La Quinta, where well-priced homes still attract a lot of attention.
Why Breaking Into the Market Feels So Tough
Several big forces are working against new buyers:
1. Higher Mortgage Rates
Rates averaging 6.69% during the study period kept monthly payments much higher than the low-rate era people still compare everything to.
2. Limited Affordable Inventory
Many new listings are at higher price points, and true “starter homes” in the Coachella Valley move fast.
3. Student Loans + Rising Rents
Saving while renting? Practically a magic trick.
Among successful first-time buyers:
59% used personal savings
26% tapped assets like 401(k)s or stocks
It’s taking more planning, more strategy, and more patience than ever before.
Why Repeat Buyers Have the Edge
While first-timers are climbing uphill, repeat buyers are coasting in on:
Years of appreciation
Stronger financial positions
The ability to move quickly
Confidence from past experience
They’re simply better equipped to win bidding situations — especially when they can offer flexible timelines or all-cash terms.
You Can Still Break Into the Market — Here’s How
If you’re dreaming of becoming a homeowner in 2025 or 2026, don’t count yourself out. There are real strategies that work, especially when you take advantage of local opportunities.
Here’s where to start:
✔ Look into down-payment assistance programs
California has several excellent options depending on credit, income, and location.
✔ Ask your lender about creative financing
2-1 buydowns, temporary rate reductions, and portfolio loans can help control monthly payments.
✔ Consider new construction
Builders across the Coachella Valley often offer incentives like rate buydowns, upgrades, or closing cost credits.
✔ Explore multi-generational options
14% of buyers chose multi-gen living in 2025 to combine resources or care for family members.
✔ Work with an experienced local agent
88% of buyers in 2025 used a real estate professional — and for good reason.
Finding the right home, negotiating strong terms, and navigating escrow are all easier with someone guiding the process.
The Bottom Line
Yes, the typical first-time buyer is older than ever.
But they’re also more strategic, more prepared, and more intentional.
If you’re hoping to buy in the Desert Cities in the next 12–24 months, the best thing you can do is start early. Let’s talk through financing options, local programs, and realistic timelines so you feel confident — not overwhelmed — as you move toward homeownership.
If you’re thinking about buying your first home in the Desert Cities — or you just want a clearer plan — I’m here to help. Whether we hop on a quick Zoom or you want to browse resources at your own pace, you’ll always get honest, straightforward guidance.
Explore my free guides and tools:
👉 https://stan.store/palmspringshomes
Prefer a conversation? Book a quick Zoom or coffee chat here:
👉 https://calendly.com/lisa-angell-ooae/30-minute-meeting-with-lisa
Lisa Angell, REALTOR® | LPT Realty | CA DRE#02122706 | Equal Housing Opportunity
