How much does becoming a homeowner at 30 boost your net worth?

Buying that first home earlier in life can put you on a stronger path to building wealth, according to Realtor.com.

On average, Americans who manage to become homeowners by age 30 are $119,000 richer by the time they’re 50 than people who wait until their mid-to-late 40s to take the plunge, the online real estate firm found in a recent study. Even those who wait until ages 33 to 37 have $59,000 more in net wealth by age 50 than those who put off buying a home.

Realtor.com said the head start acts as a “wealth multiplier” by allowing homeowners to accumulate more wealth through appreciation, which is when your home gains value over time. 

“When households are able to buy earlier, they gain more years for housing wealth to accumulate through appreciation and mortgage paydown,” the study says.

The benefits of getting on the property train early aren’t limited to the homeowners — they can also have positive trickle-down effects on subsequent generations, according to Realtor.com. An analysis by the firm found that children raised in homeowner households are 18.4 percentage points more likely to become homeowners themselves by age 35. 

Realtor.com based its findings on data from the University of Michigan’s Panel Study of Income Dynamics, a long-running survey of household income. 

Bar to entry remains high

The reality, of course, is that acquiring that first home is much easier said than done these days. The median U.S. home price is $418,000, according to Realtor.com — nearly five times the median household income of $85,000.

A February study by the National Association of Home Builders also found that, in 39 states and the District of Columbia, nearly two-thirds of households are unable to afford the median-priced new home in their area. In New Hampshire, for example, roughly 83% of households can’t afford the cost of a new home, which averages nearly $678,000.

The bar to entry is especially high for younger adults, who face more economic barriers compared with previous generations. This has resulted in delaying major milestones such as getting married, having a child and, yes, buying their first home. A November report from the National Association of Realtors found that the median age for first-time buyers is now 40-years-old, the highest ever recorded.