The National Association of REALTORS® (NAR) reported that the first-time homebuyer market share declined to a historic low of 24% in 2024, down from 32% the previous year, while the median age of buyers reached record highs, according to NAR’s 2024 Profile of Home Buyers and Sellers. The survey, covering transactions between July 2023 and June 2024, also found that first-time buyers have a median age of 38, repeat buyers 61, and the overall median age is 56, reflecting a continuing trend of older homebuyers entering the market.
NAR Deputy Chief Economist Jessica Lautz explained that first-time buyers face challenges including high home prices, elevated mortgage rates, and limited inventory. As a result, this group is older and earning higher incomes than prior generations, while current homeowners are increasingly able to purchase using cash or substantial down payments.
The report indicated that the median household income for all homebuyers rose to $108,800 in 2023. First-time buyers reported a median income of $97,000, up from $95,900 in 2022, representing a $26,000 increase over two years. Repeat buyers reported a median income of $114,300, up from $111,700. Married couples accounted for 62% of buyers, single female buyers 20%, single males 8%, and unmarried couples 6%, with first-time single female buyers increasing by 5%.
Ethnic composition showed 83% of buyers identifying as White or Caucasian, 7% as Black or African American, 6% as Hispanic or Latino, 4% as Asian or Pacific Islander, and 3% as other ethnicities. The share of buyers without children under 18 rose to 73%, the highest on record, while 17% purchased multigenerational homes for reasons including cost savings, caregiving for aging parents, and children returning home.
Real estate agents played a central role in home purchases, with 86% of buyers utilizing their services and 88% of transactions completed through an agent or broker. Buyers reported high satisfaction with agents’ responsiveness, knowledge, honesty, and market expertise, with 88% indicating they would use or recommend their agent again.
Median down payments in 2024 were 18% overall, 9% for first-time buyers, and 23% for repeat buyers—the highest levels recorded for first-time buyers since 1997 and repeat buyers since 2003. First-time buyers primarily relied on savings (69%), with others using loans or gifts (25%), financial assets (21%), or inheritances (7%). Cash purchases reached a record 26% of transactions.
Home sellers also reached record ages, with the typical seller at 63. Married couples represented 69% of sellers. The top reasons for selling included relocating closer to friends and family (23%), the home being too small (12%) or too large (11%), and neighborhood changes (10%). Ninety percent of sellers used a real estate agent, while only 6% opted for for-sale-by-owner, marking a record low. Most sellers would recommend their agent to others.
NAR President Kevin Sears highlighted the value of real estate professionals in navigating the buying and selling process, especially in challenging market conditions, citing their expertise as essential for successful transactions.
Read the full press release here: https://www.nar.realtor/newsroom/first-time-home-buyers-shrink-to-historic-low-of-24-as-buyer-age-hits-record-high
SOURCE
National Association of REALTORS® (NAR)
National Association of REALTORS® (NAR)
