06/02/2026
In 1981, the median age of a first-time homebuyer was 29. Today it's 38 to 40. That's not a trend. That's a structural shift — and the numbers behind it tell a story most people aren't talking about.
The U.S. has 86.6 million owner-occupied homes. Nearly 60% still carry a mortgage, with a median monthly cost of $2,035 consuming 21.4% of the typical owner's income. The other 40% — a record 35 million households — own outright, with no mortgage at all.
Those two groups couldn't look more different. The median age of all recent buyers hit a record 56 in 2024, and mortgaged homeowners tend to earn around $121,000 with homes valued near $360,000. They stay about 12 years before selling — long before the mortgage is halfway done. The mortgage-free owner, by contrast, is overwhelmingly older: 54% are 65 or older, 78% are over 55, and among all Americans 65 and up, nearly two-thirds own their home outright. Their incomes and home values are actually lower — around $85,000 and $250,000 respectively.
The uncomfortable truth is that the mortgage-free owner isn't wealthier by income. They simply bought earlier, when prices were a fraction of what they are today, and stayed put long enough for time to do the work.
Whether you're trying to get into homeownership sooner than the statistics suggest is possible, or you're looking for a smarter path to owning your home free and clear, the strategy matters more than most people realize. Reach out — we'd love to help you write a different story.
Encore at Compass is changing the way real estate is done - thank you for letting us show you how. Contact us or refer a friend today and we'll get you home. [email protected] www.compass.com/agents/chris-haggerty/
