The first-time homebuyer marketshare decreased to a historic low of 24% (down from 32% last year), while homebuyers’ ages hit all-time highs of 56 overall (49 last year), 38 for first-time buyers (35 last year) and 61 for repeat buyers (58 last year), according to the National Association of REALTORS®’ (NAR) 2024 Profile of Home Buyers and Sellers.
The annual survey of recent homebuyers and sellers, this year tracking transactions between July 2023 and June 2024, has been NAR’s flagship report since it first published in 1981, providing industry professionals insight into detailed home-buying and -selling behavior.
“Key findings include an increase in the median age of homebuyers, with first-time buyers reaching an all-time high median age of 38 years old,” Brandi Snowden, NAR director of member and consumer survey research, told RISMedia. “The reasons for buying remain consistent, with many citing the right time or proximity to family. Saving for a down payment remains a significant challenge, especially for first-time buyers. The satisfaction rate with REALTORS® remains steady, and there are no major changes in the home search process.”
The vast majority (90%) of sellers sold with the assistance of a real estate agent, up from 89% last year, and only 6% were for-sale-by-owner sales, an all-time low. Most sellers (87%) said they would “definitely” (72%) or “probably” (15%) recommend their agent for future services.
“Most buyers and sellers find it valuable to use an agent who is a REALTOR® to help them maneuver through the complicated buying and selling processes, especially in a challenging housing market,” said NAR President Kevin Sears, associate broker of Sears Real Estate/Lamacchia Realty, in Springfield, Massachusetts. “REALTORS® provide critical knowledge and expertise that ensure a successful transaction.”
The typical homebuyer’s median household income for 2023 rose to $108,800 from $107,000 in 2022. First-time buyers had a median household income of $97,000, up from $95,900 the prior year, an increase of $26,000 in the last two years. Repeat buyers had a median household income of $114,300, up from $111,700 the previous year.
“The U.S. housing market is split into two groups: first-time buyers struggling to enter the market and current homeowners buying with cash,” said Jessica Lautz, NAR deputy chief economist and vice president of research, in a statement. “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.”
The share of married couples increased to 62% of all buyers, with single female buyers seeing a slight rise to 20%. Conversely, the share of single males decreased to 8%, and unmarried couples dropped to 6%. In addition, the share of single female first-time buyers jumped by 5%. Several other data points hit record highs or lows as well.
More than eight in 10 (83%) recent homebuyers identified their ethnicity as white or Caucasian, while 7% identified as Black/African American, 6% as Hispanic/Latino, 4% as Asian/Pacific Islander and 3% as some other ethnicity.
Close to three-quarters (73%) of recent buyers did not have a child under the age of 18 in their home, the highest share recorded.
And 17% of buyers purchased a multigenerational home, the highest share in the data series. The top reasons cited were cost savings (36%), to take care of aging parents (25%), children over the age of 18 moving back home (21%) and children over the age of 18 who never left home (20%).
“As homebuyers encounter an unaffordable housing market, many are choosing to double up as families,” explained Lautz. “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 buyers reprioritize what matters most to them.”
Real estate agents played a crucial role in the home-buying process, with 86% of all buyers utilizing their services, the highest of all information sources used, according to the report. Agents were the most useful information source in the home search process.
And 88% of home purchases were made through a real estate agent or broker, demonstrating the continued importance of agents in the home-buying process. Nearly 90% of buyers expressed satisfaction with their agent’s responsiveness, knowledge of the purchase process, honesty and integrity, knowledge of the real estate market and people skills. Eighty-eight percent of homebuyers would use their agent again or recommend them to others.
In 2024, the median down payment was 18% for all homebuyers, 9% for first-time buyers and 23% for repeat buyers, the highest down payments for first-time buyers since 1997 and repeat buyers since 2003. First-time buyers continue to rely on savings (69%); however, 25% used loans or gifts from friends and family, 21% used financial assets, and an all-time high of 7% used inheritances. A record 26% of buyers paid cash for their homes.
The typical age of homesellers reached 63 years, the highest ever recorded. The share of married couples selling their homes was 69%, an increase from 65% last year, marking the first increase in four years.
For sellers, the most cited reason for selling their home was the desire to move closer to friends and family (23%), followed by home was too small (12%), home was too large (11%) and neighborhood becoming less desirable (10%).
“Family support systems are influencing buying and selling decisions,” said Lautz. “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.”
Key Highlights
- A record high 26% of buyers paid cash for their homes.
- Seventeen percent of homebuyers purchased a multigenerational home, the highest share ever recorded.
- The median down payment was 18% among all homebuyers and 9% for first-time buyers.
