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The New Housing Reality for Young Americans
Celebrity real estate broker Ryan Serhant asserts that young Americans need to abandon the outdated narrative of previous generations buying homes cheaply, such as a house for $50,000, because that era is over. Today's buyers confront a transformed housing landscape where affordability, ownership, and the American dream diverge significantly from those of prior generations.
You have to understand that your baseline starts right now. We are not going back anywhere. We're not going back to the rates and the market we had in 2021. We're not going back to 2015. We're also not going back to 1991.
Shifting Baselines in Affordability
The old baseline of affordability, where median-income buyers could reasonably expect to own a home, has vanished for most of the country. Last month, the National Association of Realtors released its 2025 Profile of Home Buyers and Sellers, revealing that the median age of first-time homebuyers has climbed to a record 40 years—the highest ever recorded. This shift stems from limited housing inventory and extended periods for saving and searching.
Demographic Changes and Birth Rate Trends
This record age reflects broader demographic shifts, with data from the Centers for Disease Control and Prevention (CDC) indicating that age-specific birth rates have risen, as a larger share of births now come from mothers aged 30 or older.
There is a cost of living for everybody. You're either paying rent or you're paying property taxes, you know, you're paying interest on loans. And sure, if you're making a big bet on appreciation, which we do in our business all day long, it is much better to own than it is to rent, but you don't have to. I think the American dream is a happy life defined by growth and success, in whichever way you determine your success.
Strains on New American Families and Redefining Affordability
Serhant highlights the massive strain on new American families, where people struggle to afford buying or selling homes while starting families. Demand persists, with first-time homebuyers forming the strongest market segment, partly driven by baby boomers providing cash to help their sons or daughters purchase homes. However, affordability requires redefinition. As one of America's top real estate brokers, Serhant notes that baby boomers remain the largest group of homebuyers, often acting on behalf of their children.
Generational Support in Home Purchases
A 2024 study from Intuit Credit Karma supports this, showing that 44% of Gen Z prospective buyers plan to receive financial help from parents for their first home, compared to 16% of millennials. It's boomers buying for millennials and Gen Z, and oftentimes, they're the ones at the closing table. Consequently, many young people live in houses owned by them or bought for them by a 60-year-old, which elevates the median buyer age. More younger people are living in homes they own or that were purchased for them than ever before.
Serhant's Personal Perspective as a Father
As a father, Serhant distances himself from the notion of helping his own children buy their first homes but acknowledges the appeal of alleviating that stress. His daughter is 6, and he remains hopeful she'll figure it out independently.
My parents could have bought me a house, they could have bought me an apartment. But the minute I finished school, I was 100% on my own. And what they told me was, ‘You can always come home. If you come home, you're gonna have to listen to us and follow our rules. It's our house. But you'll never be homeless. You'll never starve. You're not gonna die. You can always come home. But if you want to do anything else with your life that does not revolve around living with your parents, that's on you. We've done our part.’
Lessons from Self-Reliance
Serhant credits his success to his parents' approach, stating he would not be where he is today without their help in understanding the value of a dollar and how the world works, gained through figuring things out on his own.
