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The Value of Buying a Home Early: Insights from Realtor.com®'s Report

In an age where financial stability shapes future generations, a new report from Realtor.com® sheds light on the critical importance of homeownership. According to their findings, individuals who purchase their first home before the age of 30 can expect to see a 22.5% greater net worth by age 50 compared to those who delay their purchase until their 40s. This translates to an average financial benefit of approximately $119,000, demonstrating how essential early home buying is to achieving the American Dream.

However, the alarming trend shows that the median age for first-time homebuyers has risen from 30 years in 1990 to 40 years by 2025. This delay is primarily caused by skyrocketing home prices, which have increased at a rate nearly twice that of incomes. Consequently, the average time to save for a down payment has expanded from about three years to nearly ten, posing significant hurdles for aspiring homeowners.

Key Statistics Highlighting the Shift

The data presented by Realtor.com® paints a stark picture:

• - 1990: Median home price was $96,800; household income was $31,000.
• - 2025: Median home price surged to $418,000, while household income increased only to $85,000.

This shift is illustrated by a price-to-income ratio that has jumped from 3.11 to 4.9, demonstrating the growing pressure on potential buyers. The report emphasizes that overcoming these rising costs is critical not just for individual financial well-being, but also for the broader economic mobility that homeownership enables.

HomeGrown Campaign: A Call to Action

In light of this growing concern, Realtor.com® has launched their HomeGrown advocacy campaign. This initiative aims to foster discussions around the connections between generational wealth and homeownership. The campaign is timely, considering the current housing shortage estimated at 4 million homes, which has negatively impacted the U.S. homeownership rate, now at 65.7%—a stark decline from the pandemic peak.

Damian Eales, the CEO of Realtor.com®, highlighted the stakes involved: “Homeownership has long been one of the most reliable ways families build and pass on wealth, shaping a family's financial security for decades to come.” The campaign seeks to illuminate the widening affordability gap that leaves many young potential buyers sidelined, urging for strategic policy changes to counter these barriers.

The Power of Early Home Buying

The benefits of entering the housing market early are profound. Studies indicate that homeowners tend to accumulate wealth more effectively through both property appreciation and paying down their mortgages. The report shows that:

• - Purchasing a home between ages 28-32 leads to a 22.5% increase in net worth by age 50.
• - Waiting until ages 43-52 results in no additional net worth.

These figures underline the cumulative advantages of early homeownership, which allows individuals to build wealth over a longer period. This 'savings through mortgage' approach acts as a robust wealth-building tool, showcasing how homeownership remains a cornerstone of financial security in the U.S.

Intergenerational Wealth and Housing

Housing wealth often continues to pay dividends through generations. The report points out that children raised in homeowner households are 18.4% more likely to also become homeowners by age 35. Furthermore, families with an inherited home or monetary support are significantly more likely to enter the housing market themselves.

However, systemic inequalities persist. As of 2025, homeownership rates reveal stark disparities: 75.1% for White households compared to 44.2% for Black households and 48.7% for Hispanic households. Closing the accessibility gap for first-time buyers is imperative to ensuring equal chance at both homeownership and the wealth generation it enables.

The Path Forward

To bridge this widening gap in homeownership, policies that expand housing supply and improve access to affordable credit are critical. The HomeGrown campaign emphasizes that while not every household can buy immediately, it is essential to keep pathways to ownership clear to encourage economic mobility across generations.

Danielle Hale, chief economist at Realtor.com®, summarizes the impact of homeownership succinctly: “Buying a home not only provides stability and a place to call one's own, but it also serves as one of the most reliable paths to building wealth in the United States.” Encouraging earlier entry into the housing market is not merely a personal benefit; it is a societal imperative that can shape the landscape of wealth distribution for years to come.

In conclusion, the insights from Realtor.com® underscore the urgency of focusing on homeownership as a vehicle for wealth creation and intergenerational empowerment. The opportunity to buy earlier can set a family on a transformative path, cascading benefits that reach far beyond the individual, impacting future generations.