Report: Earlier Homebuying Builds More Wealth
Homebuyers who purchase earlier gain more equity over time, leading to a $119K net worth gap by age 50 compared to those who wait.
NEW YORK — Buying a first home at a younger age can significantly boost long-term wealth, with early purchasers gaining a six-figure advantage over those who wait, according to a new report from Realtor.com®.
Households that buy a home by age 30 have about 22.5% higher net worth by age 50 – roughly $119,000 more – compared with those who delay purchasing until their 40s, Realtor.com’s Generational Wealth Report found.
The difference comes from time. Earlier buyers have more years to build equity through mortgage payments and benefit from home price appreciation, allowing wealth gains to compound over decades.
"Earlier entry into the market doesn't just provide a place to live; it catalyzes broader balance-sheet growth,” Danielle Hale, chief economist at Realtor.com, said. “By gaining more years for appreciation and mortgage paydown, early homebuyers build a foundation of wealth that supports opportunities that cascade into the next generation. The widening affordability gap isn't just a hurdle for today's buyers, it's a structural challenge to economic mobility that compounds over decades."
The advantage shrinks with age. Buyers who purchase in their mid-30s see a smaller boost, while those entering the market after their early 40s gain little additional net worth by age 50, the report said.
However, getting into the market early has become more difficult. Rising home prices and slower income growth have pushed the typical first-time buyer age higher, limiting access to the long-term financial benefits of homeownership.
The findings highlight how homeownership continues to play a central role in building generational wealth. Mortgage payments act as a form of “forced savings,” while rising home values can further increase equity over time.
“The "forced savings" mechanism of a mortgage acts as a unique wealth-building tool. Across every Survey of Consumer Finances since 1989, homeowners have maintained a median net worth 30 to 50 times higher than renters. When entry is delayed by 10 years, as seen in the shift from 1990 to 2025, buyers lose a decade of compound growth, significantly weakening their overall financial trajectory by midlife,” Realtor.com said.
But the report also underscores a growing divide: Households that are unable to buy early may miss out on the compounding gains that have historically helped drive wealth accumulation in the U.S. housing market.
Source: Realtor.com
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