The Age of the First-Time Buyer Is Rising. Here Is How It Is Playing Out in Arizon
by Olga Boyke–Your Trusted Arizona Realtor
Buying your first home has always been a major milestone, but the timing of that milestone is shifting. Across the United States, the age of the typical first-time buyer has been rising, and new data released this year shows that the median age has now reached 40 years old. That is a significant jump compared to just a few years ago, and it reflects the financial and supply pressures young buyers are facing nationwide.
But Arizona has its own story within the national trend. Our state continues to attract retirees, second-home buyers, and cash-rich movers from more expensive metros. This is reshaping who gets to buy, how fast homes sell, and what it takes to compete. While the dream of homeownership is still very much alive, the path to getting the keys looks different today, especially for younger buyers in Phoenix, Tucson, and fast-growing surrounding communities.
The National Shift: Older First-Time Buyers and Lower Market Share
According to the National Association of Realtors, only 21 percent of home purchases this year were made by first-time buyers, the lowest share since data tracking began in 1981. At the same time, the median age of these first-time buyers has climbed steadily from 33 in 2020 to 40 today.
Why is this happening?
High home prices relative to wages
Elevated mortgage rates in recent years
Limited housing inventory, especially entry-level homes
Rising costs for childcare and everyday living that slow down savings
This means many younger buyers are renting longer, living with family longer, or needing multiple income streams to build a down payment. Meanwhile, repeat buyers, who tend to be older, have an advantage because they already have equity to roll into their next home.
How This Trend Shows Up In Arizona
Arizona has long attracted buyers relocating from pricier places like California, Seattle, and Chicago. Many of these incoming buyers sell a home elsewhere and arrive with cash or large down payments. Combine that with investors, snowbirds, and second-home buyers, and you get a market where buyers with more financial cushion often have the upper hand.
Cash buyers currently make up a meaningful share of Arizona activity:
Statewide: around one in three sales
Phoenix metro: roughly 29 percent
Tucson: close to 35 percent
When one out of three buyers is purchasing with cash, it makes competition tougher for first-time buyers using traditional financing. Sellers often prefer fewer contingencies, faster closings, and lower risk, which makes cash offers extremely appealing.
What This Means for Younger Buyers in Arizona
Younger buyers are not out of the game. The landscape is simply different. Some key strategies that help right now:
Looking beyond the hottest zip codes where bidding wars are strongest
Taking advantage of down payment assistance or community development programs
Exploring new construction in emerging areas where prices can be more accessible
Getting pre-approved early and knowing your ceiling before touring homes
There is also a hint of relief forming. Mortgage rates have recently seen small declines and home price growth is slowing in parts of the state. Some neighborhoods around Central Phoenix, Glendale, and Mesa are seeing more balanced conditions that could give first-time buyers more breathing room in the coming year.
Arizona’s housing market is influenced by both national pressure and local demand. The rise in the average age of first-time buyers reflects real financial hurdles, but it also underscores the need for smart strategy, patient planning, and market guidance. Every buyer’s journey looks different, and there are still opportunities for those entering the market for the first time.
If you are thinking about buying your first home or moving within Arizona, I would be glad to help you understand your options based on your budget, your goals, and the specific neighborhoods that make the most sense for your next chapter.
Schedule a consultation with me. We will walk through the neighborhoods, price ranges, and strategies that fit your situation. And for ongoing Arizona market updates, trends, and insights, follow me on my other social media channels so you never miss what is happening next in the Valley and beyond.
