Have you noticed first-time homebuyers are around San Diego? Especially in neighborhoods like North Park, South Park, Normal Heights, and University Heights, they seem a little older than they used to be.
According to the 2025 National Association of REALTORS® Profile of Home Buyers and Sellers, the median age of first-time homebuyers has climbed to 40, the highest on record. That’s up from 38 last year and significantly higher than the late 20s back in the 1980s.
So, what’s going on? And what does that mean for buyers trying to break into high-demand areas like North Park’s craftsman-lined streets or South Park’s charming historic homes?
Let’s dig in.
It’s Not Just You; Buying a Home Really Is Harder
Across the country, first-time buyers now make up just 21% of all home purchases — the lowest share ever recorded. In San Diego, where prices remain among the highest in the nation, that number feels even smaller.
Between rising mortgage rates, limited inventory, and strong competition from cash-heavy repeat buyers, many locals are waiting longer, saving more, and entering the market later in life.
The Growing Divide Between Repeat Buyers and First-Time Buyers
Here’s what the data shows nationally — and what we’re seeing locally, too:
- Repeat buyers are older and more equity-rich. The median age of repeat buyers is now 62, an all-time high.
- Cash is king. Nearly 30% of repeat buyers paid all cash, compared to just 8% of first-timers.
- Bigger down payments. Repeat buyers put down an average of 23%, while first-timers managed 10% — the highest since 1989.
In markets like North Park or South Park, where well-maintained vintage homes and newer townhomes often attract multiple offers, that kind of cash and equity gives repeat buyers a big edge.
Why It’s Tough to Break Into the Market
Affordability is the main culprit — and it’s being squeezed from all sides:
- Higher mortgage rates. The average rate during the study period was 6.69%, keeping monthly payments higher than pandemic-era lows.
- Limited affordable inventory. “Starter homes” are rare in central San Diego. Even small condos or bungalows can command premium prices.
- Saving while renting. With local rents staying high, first-time buyers often struggle to save enough for a down payment. Many tap into 401(k)s or stock accounts to bridge the gap.
Put it all together, and it’s easy to see why the typical first-time buyer is older and more financially established.
How Repeat Buyers Have the Advantage
Longtime homeowners who bought homes in the 2010s, when prices were much lower, have built significant equity. Many have owned their homes for over a decade and are now using that equity to buy their next home in cash or with a smaller mortgage.
Because they’ve already been through the process once, they tend to move faster, write stronger offers, and have an easier time winning in competitive markets.
Tips for San Diego’s First-Time Buyers
If you’re feeling discouraged, don’t lose hope — there are still smart ways to make your move in neighborhoods like North Park, South Park, Normal Heights, and Golden Hill.
Here are a few ideas:
- Explore local down-payment assistance programs. San Diego offers several first-time buyer incentives that can help reduce upfront costs.
- Ask your lender about rate buydowns. Programs like 2-1 buydowns can make your first two years more affordable.
- Consider new construction or smaller condos. While detached homes are pricey, newer townhomes and condos in the area can be a great entry point.
- Think long-term. Multi-generational living or house hacking (renting out part of your property) can offset monthly costs.
- Work with a local expert. In tight markets like these, having a neighborhood-savvy agent makes all the difference.
About The McT Real Estate Group
At the McT Real Estate Group, we specialize in helping buyers and sellers in North Park, South Park, and surrounding central San Diego neighborhoods navigate today’s fast-changing market.
Our team takes a personal, hands-on approach offering creative strategies, local insight, and guidance to help first-time buyers find the right home (even when inventory feels impossible). Whether you’re just starting to save or ready to write your first offer, we’re here to help you move from someday to sold.
The Bottom Line on Why First-Time Buyers Are Older Than Ever
Yes, today’s first-time buyers are older, but they’re also wiser, more prepared, and more strategic than ever before. If you’ve been dreaming of owning a home in North Park, South Park, or the surrounding communities of San Diego, it’s absolutely possible with the right plan and local guidance.
Let’s talk about your goals, financing options, and the neighborhoods that best fit your lifestyle. Reach out to The McT Real Estate Group today and take the first step toward your San Diego homeownership story.