When Older Renters Become First-Time Buyers

New York Times

05-03-2025

It was the fire in her Harlem rental building that galvanized Sandra Foley.
With her longtime apartment suddenly uninhabitable, Ms. Foley, a nanny, stayed with her employer for a few months, then with an aunt. And she began to rethink the future.
'Getting older, you know, I wanted to make sure I had something for myself later in life or when I retired,' said Ms. Foley, 60, who moved to New York from Trinidad more than 30 years ago. 'And I have a daughter, and I wanted to make sure that there was something left behind for her, too.'
Last year, she made her first home purchase — a one-bedroom co-op in Riverdale, the Bronx, in an all-cash deal for $170,000. While the monthly maintenance is more than she was paying in rent, 'It's worth it,' said Ms. Foley, who's in the process of renovating the kitchen. 'It's totally worth it because this is something I own.'
In 2024, the median age of first-time buyers in the United States was 38, according to data from the National Association of Realtors. Only 11 percent of buyers in the 55-to-64 demographic, and 6 percent of buyers in the 65-to-74 category, were first-timers.
Hesitant older buyers have all sorts of reasons to explain their hesitation, said Kathy Braddock, co-owner of Braddock and Purcell, a residential real estate consulting firm. They may be paying an unbeatable rent, or they may be comfortable where they are and don't want the hassle of relocating. They may not have the wherewithal for a down payment because they're saving for their children's college tuition. Or they may live in a big city where renting is the norm.
But there are just as many reasons longtime renters choose to take the plunge. Some have come into a bonus at work, vested stock or a family inheritance, and decide to invest the proceeds in real estate. Others are sick of writing rent checks with nothing in the way of equity to show for it. Then there are those who are bumping up against that most unattractive truth: They aren't getting any younger. 'Fifty, or 50-ish, is like the last exit,' Ms. Braddock said.' People think to themselves, 'if not now, when?'
And for many, she added, 'homeownership is still the American dream.'
It was never Kathleen Tolan's dream. An actor, playwright and professor, Ms. Tolan, now 74, came to New York City as a college student and began a long tenure as a renter, first in the East Village, later in Chelsea, and most recently in Carroll Gardens, Brooklyn, where the full floor of a brownstone (admittedly a narrow floor) was hers for $2,000 a month.
The apartment was lovely, with exposed brick and good light. The landlord was lovely too: He never raised the rent. 'It felt cozy and I thought, 'I'll never leave,'' recalled Ms. Tolan, who's divorced and has two adult daughters. 'I didn't feel any need to own.'
But that was before the landlord came to her and explained that he wanted the space back for his daughter and her growing family. Accordingly, Ms. Tolan began looking for a new place near Prospect Park, an area she knew and liked, but was stunned by the high rents.
'My mother died some years ago, and I realized I had enough money for a down payment on something,' Ms. Tolan said. 'I talked to a financial adviser, which was very grown-up of me, and he said it made sense for me to buy.'
At the suggestion of friends, she looked at two adjacent neighborhoods just south of the park: Kensington, then Ditmas Park — which is where she ended up, in a prewar one-bedroom co-op.
She was firm on a single issue: 'There had to be an elevator.'
It's one of the things that's often on the 'must have' list for older buyers. It may not be needed right away, but it will be crucial down the line. Stairs outside a building are also a consideration, 'as are the topography and logistics of managing a neighborhood,' said Peter Cohen, a licensed salesman at Brown Harris Stevens.
Elevator and all, Ms. Tolan hopes the one-bedroom apartment, which she bought for $540,000, will belong to her daughters someday. 'But I have a 30-year mortgage,' she said. 'It will be astounding if I pay it off.'
By law, a borrower's age must be irrelevant to a lender. 'Whether 25 or 55, applicants must meet set qualifications in the same core areas when it comes to home financing,' said Sam Lanfear, a senior vice president at Tomo, a mortgage lender.
Still, buyers over 50 may have an advantage over younger ones. 'They've had more time to establish both a long credit history and to accumulate savings,' Mr. Lanfear said. 'That could make it easier for them to qualify in general, and also to get financing with better terms.'
Ronell Mitchell, a 56-year-old father of two and a lifelong renter in Harlem, the Bronx and Queens, always wanted to own a place. He attended numerous seminars and classes on the ins and outs of home buying before he took the leap of faith.
'It just felt like a lot of talk about regulations and loopholes,' said Mr. Mitchell, who owns a retail clothing business. 'I think that's what kept me on the sidelines for so long. But the desire was always there. I understood that it was a way to create generational wealth. If something happened to me, I'd have something to leave to my kids.'
A helpful mortgage lender helped ease Mr. Mitchell off the sidelines. Because he had fond memories of apple-picking trips to Connecticut with a favorite elementary schoolteacher, he focused on properties in Bridgeport, Waterbury and Hartford.
Late last year, Mr. Mitchell closed on a three-bedroom townhouse in Hartford for $185,000. 'It's like I was in a football league for 20 years and never won a championship, and then all of a sudden I'm the MVP and also have a Super Bowl ring,' he said. 'That's what buying feels like.'
His monthly mortgage payment is $1,600 — $300 less than he'd most recently been paying in rent. Should he have bought 20 years ago? Ten years ago? Think of all the money he could have saved. But that's just not how he likes to look at things.
'I always tell people we can't argue about when blessings arise,' he said. 'I would rather it happened now than to have it never happen at all.'