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LATER LIFE MILESTONES ARE REDEFINING U.S. HOMEOWNERSHIP
THE NEW NORMAL OF FAMILY FORMATION
The demographic makeup of U.S. households is shifting, slowly but decisively. Fewer people are starting families, and those who do are waiting longer. These aren’t temporary fluctuations; they reflect structural societal shifts that are reshaping housing demand. About 3.6 million babies were born in the U.S. in 2025, down slightly from 3.63 million in 2024 and far below the 4.3 million peak in 2007. THREE SHIFTS DRIVING THE CHANGE
LIFE MILESTONES ARE NOW MIDLIFE MOMENTS Across generations, we’re seeing a clear trend: life’s key transitions are happening later, which affects when Americans enter the housing market.
IMPLICATIONS FOR HOUSING STRATEGY Short-Term: Expect increased rental demand. The average age of a first-time homebuyer is now 38, which is up significantly from 31 just a decade ago. Long-Term: The under-18 population is projected to decline by 3% by 2034. Fewer children today mean fewer household formations tomorrow. Opportunity: Despite demographic headwinds, key homebuying segments (Millennials and early Gen Z) will still grow in absolute terms, presenting real opportunities for those who align products with delayed-but-stronger demand. |
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