Americans are waiting longer than ever to buy their first home. And for many, it’s not happening until they’re middle-aged.
The median age of the first-time homebuyer rose to a record high of 40 last year, according to the National Association of Realtors, up from the early 30s roughly a decade ago. The average American today will get married and have their first kid in their late 20s or early 30s, according to Census and CDC data. Homebuying was once coupled with those milestones. But the housing market has grown increasingly unaffordable thanks to high interest rates and low supply, effectively reshaping the American life timeline.
And Zillow CEO Jeremy Wacksman doesn’t see that changing anytime soon.
“The fact that it’s been going up is this affordability challenge,” he told Fortune in an exclusive interview, referring to the median age of the first-time homebuyer. “People are having to wait longer to save up and find their way into a down payment.”
“We aren’t expecting any relief in the short term,” he added. “I think it’s just going to take a while.”
Home prices are up 60% compared to pre-pandemic figures as the country endures a prolonged housing shortage, estimated at about 4.7 million according to a 2025 Zillow report. The situation has grown so dire some potential buyers are looking to their parents to pay their down payment.
The current economic outlook isn’t helping, either. Rising gas prices are eating away at Gen Z’s rent payments. And nearly three-in-five Americans today fear the encroaching AI job apocalypse could make housing even more unattainable. One of the central pillars of the American dream is becoming increasingly decoupled from the other key rites of adulthood.
What’s making homeownership so hard for younger buyers
Wacksman’s diagnosis of the situation is on par with what other economists, policy experts, and politicians have uttered: supply shortages.
He said one of his main concerns is homeowners delaying sales as they wait for mortgage rates to fall to more tolerable levels. Bringing those sellers back to market would add much-needed inventory and help ease prices. Instead, many remain shackled with “golden handcuffs,” as current conditions incentivize them to stay put.
“Sellers who’ve been holding on to their low mortgage rate will finally say, ‘Okay, I’ve been putting off the move,’” he said. “’Now the gap in my mortgage rate is tolerable and I’ll move and new listing supply will come online.’”
The CEO also lauded the Trump administration’s efforts on housing affordability, including the executive order President Donald Trump signed to reduce regulation around mortgages. He’s also hopeful a bipartisan housing bill—a measure aiming to reduce housing regulatory barriers and cap corporate ownership of homes, that passed the Senate with an 89-10 vote—could move the needle on the housing supply.
“What we’re most excited to see is that this is a big topic now, and it’s a topic across Washington on the supply side,” he said.
How Zillow aims to use AI to address the housing crisis
While many of the factors contributing to the housing affordability crisis are structural, Wacksman believes Zillow can at least improve the conditions for those who still think homeownership is out of reach.
Wacksman said an education gap remains a high barrier for many prospective buyers, as most don’t fully understand the complexity of housing transactions. The company is betting the launch of its new AI mode, announced Wednesday, will help close that gap. The feature allows users to interact with Zillow in a conversational format similar to ChatGPT.
“Tools like ours—Zillow AI mode, buyability in our financing tools—they can help educate buyers,” he said. “They can teach you: ‘How could I get it done? There are different mortgage options. Maybe I can look in a different market.’” According to a press release, Zillow AI mode can handle everything from answering affordability questions and comparing options to booking tours.
The company also launched Zillow Preview last week, a tool meant to expand listings on the platform by permitting agents and brokers to showcase “coming soon” listings. Wacksman thinks bringing pre-listings onto the platform will increase supply by publishing more house listings on Zillow, and help to address the housing shortage.
Still, the CEO said there are limitations to how the company can tackle the housing situation. “We can educate,” he said. “We can’t build more houses.”
