The National Association of Realtors’ 2024 report paints a revealing picture of today’s US homebuyer – a profile that has shifted dramatically compared to even a decade ago. Today’s market is seeing a marked shift towards older, more financially established buyers as housing costs and higher interest rates make homeownership a challenge for many younger buyers.

In 2024, the average age of the homebuyer has risen to 56, reaching an all-time high. For first-time buyers, that age is now 38, up nearly a decade since the early 1980s. This change highlights the impact of economic factors like rising home prices and interest rates, which are putting the dream of homeownership out of reach for younger generations. As a result, buyers today often have significant financial security, coming to the table with accumulated wealth and stability that’s reshaping the market dynamics.

Another compelling trend is the growing influence of single women as buyers, who now account for about one in five home purchases. This shift not only reflects changes in societal attitudes toward homeownership but also marks an economic shift, showing who can afford to enter the market. In contrast, single men make up only 8% of recent homebuyers.

The market today is often described as “bifurcated” – those able to buy tend to be older, established individuals, often leveraging home equity from previous properties to make substantial down payments or even cash purchases. For younger would-be buyers, this market can feel largely inaccessible, with affordability barriers and limited financial support options compounded by high mortgage rates. First-time buyers now represent just 24% of the market, a steep decline from pre-Great Recession years when they held around 40%.

As we look ahead, some indicators suggest a potential shift on the horizon. Recent mortgage application trends hint that if interest rates stabilize, more sidelined buyers – particularly younger and more diverse groups – could re-enter the market. This re-emergence may begin to reshape the buyer profile, bringing more diversity in age, household composition, and race among homebuyers.

These trends underscore an evolving market landscape, one that demands flexibility and insight as real estate professionals adapt to the shifting needs and demographics of today’s and tomorrow’s buyers.

source: www.nar.realtor