Key Details:
- According to the National Association of Realtors®, first-time home buyers have reached a historic low of 24% (falling from 32% last year).
- The average age of buyers has climbed to a record high of 56 years overall—with 38 years for first-time buyers and 61 for repeat buyers.
- The report shows buyer incomes have surged, including those of first-time buyers, but the latter face heightened challenges in a competitive housing market.
- A record 26% of home buyers are paying cash for their purchases.
The market share of first-time home buyers has dropped to a record low of 24%, down from 32% last year. This decline indicates the ongoing struggle for new buyers to enter the market, even as other buyer demographics continue to evolve.
Meanwhile, the average home buyer age has reached a new record high of 56 years overall–up from 49 last year—with 38 years as the average for first-time buyers (up from 35) and 61 as the average for repeat buyers (up from 58). In short: older buyers are increasingly dominating the market.
That’s according to the National Association of Realtors®’ 2024 Profile of Home Buyers and Sellers, which analyzed transaction data from July 2023 to June 2024. Each year, this report offers an in-depth look into how buyer and seller demographics, income, and motivations are changing over time.
Let’s dive in.
Home Buyer Incomes Reach All-Time High
One notable finding is the increase in household incomes among buyers, with the typical buyer earning an all-time high of $108,800 (up from $107,000 in 2022):
- First-time buyers saw a bump to $97,000—up from $95,000 the year before and $26,000 more than the median income for 2021.
- Repeat buyers averaged a higher income at $114,300—up from $111,700 the previous year.
NAR has been publishing its flagship annual buyer and seller report since 1981, providing detailed insights into home buying and selling behavior over a 12-month period. This year’s income data suggests a widening income gap between first-time and repeat buyers, with many new buyers needing a significantly higher income to break into the market.
The U.S. housing market is split into two groups: first-time buyers struggling to enter the market and current homeowners buying with cash. First-time buyers face high home prices, high mortgage interest rates and limited inventory, making them a decade older with significantly higher incomes than previous generations of buyers. Meanwhile, current homeowners can more easily make housing trades using built-up housing equity for cash purchases or large down payments on dream homes.
Demographics and Lifestyle Shifts Among Buyers
Diving deeper into the demographic breakdown, the report revealed more shifts in buyer profiles. The share of married couples grew to 62% of all home buyers, while the share of single female buyers grew slightly to 20% and the share of female first-time buyers increased by 5%.
Meanwhile, other demographic shifts reveal a decreasing share of single male buyers (now at 8%) and a decline in unmarried couples (down to 6%).
In terms of ethnic diversity, 83% of recent home buyers identified as White/Caucasian, with smaller percentages identifying as:
- Black/African American: 7%
- Hispanic/Latino: 6%
- Asian/Pacific Islander: 4%
- Other ethnicity: 3%
Additionally, a significant lifestyle shift is evident in family dynamics among buyers. Nearly three-quarters (73%) of recent home buyers did not have a child under 18 years of age in their home, marking the highest share ever recorded for this buyer group.
About one in six home buyers (17%) purchased a multigenerational home—the highest share in the history of the data series—for reasons including:
- Cost savings (36%)
- Providing care for aging parents (25%)
- Children over the age of 18 moving back home (21%)
- Children over the age of 18 who never left home (20%)
As home buyers encounter an unaffordable housing market, many are choosing to double up as families. Cost savings are a major factor, with young adults returning home – or never leaving – due to prohibitive rental and home prices. Meanwhile, elderly parents and relatives are moving in with family members as home buyers reprioritize what matters most to them.
Mortgage Financing vs. All-Cash Purchases
In terms of how buyers are financing their homes, 2024 saw median down payments averaging 18% across all buyer groups.
That figure breaks down to an average 9% down payment for first-time home buyers and 23% for repeat home buyers—the highest down payments for first-time buyers since 1997 and the highest for repeat buyers since 2003.
To cover the down payment, first-time home buyers continued to rely on savings (69%):
- 25% used loans or gifts from family and friends
- 21% used financial assets
- 7% used inheritances (marking an all-time high for this funding source)
A record 26% of home buyers paid cash for their homes. This trend toward cash purchases indicates a shift where financial independence or existing equity plays a larger role in home buying decisions.
Family support systems are influencing buying and selling decisions. Being close to friends and family is the top reason to sell, while buying a home convenient to friends and family continues to grow in importance. Today’s buyers are less likely to be concerned with their work locations when purchasing, perhaps because of a higher share of older repeat buyers and remote work flexibility remaining a factor.
Stay tuned for more insights from NAR’s report, including home seller behavior and what real estate agents need to know about consumer expectations regarding the home buying and selling process.
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