Why the Average First-Time Homebuyer Is Now 40 — And What It Means for Omaha Buyers

Buyers  ·  Chris Jamison, Nebraska Realty  ·  2026

If it feels like first-time homebuyers are older than they used to be — you're not imagining it. According to the 2025 Profile of Home Buyers and Sellers from the National Association of REALTORS®, the median age of first-time buyers hit 40 this year — an all-time record. That's up from 38 the year before and a long way from the late-20s norm of the 1980s. So what's driving the delay, and what does it actually mean if you're trying to buy your first home in the Omaha metro? Let's get into it.

The Numbers, First

The 2025 NAR data paints a clear picture. First-time buyers are older, fewer in number, and carrying a heavier financial load than any previous generation at the same stage of life.

Meanwhile, repeat buyers put down 23% on average, and nearly 30% paid in cash outright. Their median age is now 62 — also an all-time record. These are people who spent the last decade building home equity and are now using it as a serious financial weapon.

The "Cash Buyer Problem" Is More Specific Than You Think

If you've been reading national headlines about cash buyers crushing every offer, the picture in Omaha is a little more specific. A lot of those cash buyers are either investors or people downsizing — and each group is chasing a very particular type of home.

Investors want properties that pencil as rentals. Downsizers want single-level, low-maintenance, easy to lock-and-leave. What neither of them particularly wants is a two-story house with stairs, a big yard, and a layout that reads "family home." That's where first-time buyers have a real shot.

The competition for first-time buyer homes isn't nearly as fierce as the aggregate numbers suggest. Knowing which homes you're actually competing for — and who else is in the room — changes the whole equation.

Why It Takes Longer Now (And the Rent Trap Nobody Talks About)

Affordability is the honest answer. Rates averaged 6.69% during the NAR study period, monthly payments are dramatically higher than they were during the pandemic, and most first-timers are trying to save a down payment while paying rent that increases every year.

Among buyers who managed to close, 59% used personal savings and 26% pulled from retirement accounts or investments. That's not passive — that's years of sacrifice while renting.

Which brings up the question I hear constantly: should I just wait for rates to drop?

The math rarely favors waiting, especially in a market like Omaha where home values move steadily upward. Buyers who held out for rates to hit 4% again are now dealing with higher prices and higher rates. The mortgage calculator is a good place to run your own numbers — sometimes seeing the actual monthly payment compared to what you're already paying in rent is all it takes to make the call.

Where First-Timers Are Actually Winning in Omaha Right Now

Here's the thing: first-time buyers can compete across the entire Omaha metro. But some areas offer noticeably more value per dollar — especially if you're willing to look past a dated kitchen or a yard that needs attention.

Right now, some of the best bang for the buck is in Benson, Hanscom Park, Bellevue, and Ralston. These neighborhoods have solid bones, real character, and price points that are more accessible than the polished listings west of 156th. They also tend to attract fewer cash buyers — investors and downsizers alike.

The other edge first-timers can use: stop chasing the perfectly staged homes that everyone else is fighting over. A home that needs paint, new carpet, or updated fixtures will sell for meaningfully less — and those are $5,000 fixes, not $50,000 ones. If you can walk in and see past the cosmetics, you'll often find the field is much less crowded.

There's also an interesting wrinkle in the age-40 stat. A growing number of older first-time buyers are skipping the starter home entirely and going straight into a move-up home or new construction. They've been renting longer, saving more, and don't want to walk into a project. That actually opens space for younger buyers who are willing to do some work — less competition on exactly the homes where the value is.

Not sure which areas fit your budget and lifestyle? The Omaha Neighborhood Quiz is a quick way to narrow it down.

Programs and Creative Moves Worth Knowing About

NIFA Homebuyer Assistance (HBA). Nebraska's main down payment assistance program offers up to 5% of the purchase price (max $10,000) as a second mortgage at 1% interest over 10 years. Income limit is $175,500 and the purchase price cap is $485,500. Some buyers I work with have used it — and it's a real, legitimate program. The honest caveat: it puts you underwater from day one. If something changes in your life and you need to sell in the first couple of years, you may not have enough appreciation to cover your closing costs and listing fees. You could end up needing to rent the home out or get creative. It works best if you're planning to stay put for at least three to five years. More at nifa.org.

Family gifting and creative cash. More buyers get to the closing table with family help than most people realize. Some receive a direct gift toward the down payment. Others have borrowed cash from a family member to buy outright, then done a cash-out refinance later — once the home has built some equity — to pay the family back and take on a traditional mortgage. Not for everyone, but it's a legitimate path.

New construction. Builders in Gretna, Papillion, and Bennington have been offering rate buydowns and closing cost incentives to move quick-move-in inventory. If you're open to a new build, it's worth a conversation — and you'll be competing in a different pool than the one fighting over the same resale listings. Browse available homes or take a look at what's listed under $300K in Omaha to get a sense of what's actually out there.