Average US Homebuyer Age Reaches 56 as First-Time Buyer Share Falls to Record-Low 24%

Nov 4, 2024, 07:05 PM

The National Association of Realtors (NAR) has released its 2024 Profile of Home Buyers and Sellers, revealing that the typical age of US homebuyers has soared to an all-time high of 56 years old, up from 49 in 2023. The median age of first-time homebuyers has increased to 38, compared to 35 last year, while repeat buyers now average 61 years old. This marks a significant shift from the 1980s, when the typical first-time buyer was in their late 20s. First-time buyers now constitute a record-low 24% of home purchases, the lowest share in 43 years, down from 32% the previous year. According to an NAR economist, "The U.S. housing market is split into two groups: first-time buyers struggling to enter the market and current homeowners buying with cash." Factors such as high home prices—still 10 times the 2023 median personal income—limited inventory, and elevated mortgage rates above 7% are cited as reasons for younger buyers being locked out of the housing market. The average age of homebuyers has risen by six years since July 2023, illustrating the rapid escalation of affordability challenges. The US housing market is increasingly dominated by older, wealthier buyers, highlighting significant barriers for younger Americans seeking to enter the property market.