Homebuyers' average age hits record high amid affordability challenges

The National Association of Realtors® (NAR) has released its 2024 Profile of Home Buyers and Sellers, revealing a notable shift in the demographics of homebuyers. The median age of homebuyers has increased to 56 years old, up seven years from the previous year. Brandi Snowden, NAR's director of member and consumer survey research, attributes this rise partly to the decreased share of first-time homebuyers, which hit a record low at 24%.

Before the financial crisis in 2008, first-time buyers constituted around 40% of the market. Snowden notes that "due to lack of affordable housing, people might be putting off home purchases for a longer period of time." The median age for first-time buyers has also reached a new high at 38 years old.

The survey covered nearly 5,390 buyers who purchased homes between July 2023 and June 2024. A significant finding is that many buyers are using their savings to finance their purchases—49% overall and an even higher percentage among first-time buyers at 69%. This trend is supported by the fact that some first-time buyers lived with friends or family before purchasing their homes.

The median household income for successful homebuyers was $108,800, slightly higher than last year's $107,000. Rising mortgage rates have posed challenges; they averaged 7.02% over the past year with peaks reaching as high as 7.79%. According to Snowden, "Lack of affordable housing has been a big issue," pushing buyers to need higher incomes.

Married couples continue to dominate the buyer demographic at 62%, followed by single women (20%), single men (8%), and unmarried couples (6%). Most purchasers preferred detached single-family homes built around 1994.

Multigenerational living arrangements have become more common due to rising housing costs; these now account for an all-time high of 17% of purchases. Cost savings and caring for aging parents are leading reasons behind this choice.

First-time homebuyer numbers have fallen sharply to just 24%, marking the lowest level since data collection began in 1981. These individuals are primarily older millennials with a median age of 38.

Buyers showed a preference for suburban areas (45%) and small towns (23%). Urban area purchases rose to their highest share since 2014 at 16%. Quality neighborhoods were prioritized over job proximity when choosing locations.

Home sellers' average age reached its peak at 63 years old. Their motivations included moving closer to family or downsizing due to changing neighborhood desirability. Homes typically went under contract within three weeks—one week longer than last year.