<div id="readability-page-1">America’s housing ladder is missing a few rungs. The median first-time homebuyer is now 40 years old — a record high — and some of the country’s most seasoned agents say the &#34;starter home&#34; has become more of a luxury.&#34;One of the things that I see is that younger people are battling more debt,&#34; Compass’ Laura Worrell told Fox News Digital. &#34;The cost of homeownership is outpacing the entry-level job market … it's very difficult to save money to be able to have a down payment and to do those types of things and … it's not entirely their fault. I mean, there's just so much against them, so many factors.&#34; &#34;I feel strongly that the American dream still exists, and that dream is to buy a home, start a family, whatever that means for you,&#34; Compass top agent Miltiadis Kastanis also told Fox Digital. &#34;But I do think that the American dream still has homeownership at the core root of it … It's still there, but as time goes on, we have to adapt as Americans to the environments we're in.&#34; TRUMP'S 50-YEAR MORTGAGE PROPOSAL: WHAT WOULD IT MEAN FOR HOMEBUYERS?The National Association of Realtors released its 2025 Profile of Home Buyers and Sellers earlier this month, finding that the median age of first-time homebuyers jumped to the highest ever recorded at 40 years old. The report attributed this to limited housing inventory and longer saving and search periods.<div><div> </div> America's first-time homebuyer hit a new record high age of 40, according to the National Association of Realtors. (Getty Images)</div>Data from the Federal Reserve Bank of St. Louis shows the national median sales price of houses sold in the U.S. reached $410,800 in Q2 2025. Additionally, Zillow data from earlier this year found that U.S. home values have risen more than 45% since 2020.&#34;I have noticed that the homebuyer age has increasingly become older through time. I mean, even for my generation, I'm now 40 years old, I bought my first home when I was 19 years old, and I notice I don't work with many 19-year-olds today,&#34; Kastanis reacted.&#34;My first home that I ever bought was nowhere near the world of what somewhat-younger people are expecting from a first home. I think expectations have changed,&#34; he continued. &#34;I think they're surrounded by people, of seeing online what others have, and they're expecting way more … Prices for sure have changed, right? Like, at some point, I never dreamed of having a $1 million home, where now $1 million in my market doesn't get you much.&#34;&#34;I see younger people adjusting their expectations,&#34; Worrell agreed. &#34;A lot of people in their 20s aren't thinking about necessarily that quote-unquote 'first milestone’ … I would say that they have to kind of go back and think about how to get there, and think about affordability strategies like, how will you make that first down payment?&#34;&#34;Now these folks are more in a planning stage at that mid 20s [age], like planning to future-buy a home, but that is years of planning to be able to do that,&#34; she added.Between mortgage volatility, sky-high prices and cost-of-living increases, both agents say the mix of market factors has made it harder for millennials and Gen Z to keep up.&#34;Regardless if homeownership was part of your plan, affordability of living is incredibly high, right? And so, it's hard for them to dig themselves out of that,&#34; Worrell argued. &#34;But will that next generation get left behind in terms of homeownership? It's hard to say, because right now there's not, in my opinion, a great plan for changing affordability in general.&#34;IS OWNING A HOME STILL THE AMERICAN DREAM? WHY OLDER AMERICANS ARE CHOOSING TO RENT&#34;I think it's related to the cost of living. It is very expensive to live in America, first and foremost, but to live in a safe, prime neighborhood to get that American dream, it's just way more costly,&#34; Kastanis said.&#34;Imagine trying to maintain a good lifestyle with the cost of living in America. You know, it's a very hefty price to pay – that's worth it, by the way, because obviously, as an American, I feel this is the greatest country in the world,&#34; he expanded. &#34;But in order to get what the world considers the American dream, it costs a lot more for this generation.&#34;While today’s 40-year-old first-time buyer is often meticulous, careful and over-prepared, younger buyers can make costly mistakes that derail offers.&#34;They don’t take it lightly … they want what they want,&#34; Worrell noted of her first-time buyers. &#34;An experienced realtor is very important because that person has seen it all … ‘That may not work out for you, but there’s a home over here,’ … ‘Let's have a look at new construction where the builder is willing to pay your closing cost,’ … There’s opportunity there for a buyer.&#34;<blockquote>&#34;I do think that the American dream still has homeownership at the core root of it … It's still there, but as time goes on, we have to adapt as Americans to the environments we're in.&#34; </blockquote>&#34;A lot of the younger first-time buyers, there's a little bit of concern in them that makes them react a little bit slower,&#34; Kastanis pointed out, &#34;thinking too much and not getting into the deal … that lack of representation with the younger buyers is proven to be problematic.&#34;&#34;In order to have a seat at the table in a competitive market, you have to have a strong strategy,&#34; he continued. &#34;You have to work with professionals and trust professionals that have navigated the old, pre-COVID market, the post-COVID market.&#34;Their best advice: align with a real estate expert and watch for factors beyond your control — inventory, inflation and rates.GET FOX BUSINESS ON THE GO BY CLICKING HERE&#34;I think it comes down to the basic ethos of human interaction, and having the conversations and setting yourself up [right] so that you can have a strategy to get the results that you want and what your American dream is,&#34; Kastanis said.&#34;I would 100% change what young people are taught in terms of setting themselves up for the time and place that they're put in,&#34; Worrell chimed in. &#34;It's hard to see somebody who has all the skills, or who has the discipline, or who's doing everything right, but simply cannot overcome because they're not getting paid enough in their job — or maybe even two jobs — to overcome the current economy.&#34;READ MORE FROM FOX BUSINESS</div>

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The median age for first-time homebuyers in the U.S. has reached a record high of 40 years, driven by affordability challenges, limited housing inventory, and increased home values. Compass agents highlight the difficulties younger generations face in saving for a down payment amidst rising living costs. Despite these hurdles, homeownership remains a core part of the American dream, though expectations and strategies must adapt to current economic conditions.

‘Affordability is the hurdle’: Compass agents sound alarm on first homes