Homebuyers are Getting Older: Study Reveals Surprising Trends
First-Time Homebuyers: The New Normal?
A recent survey conducted by the National Association of Realtors (NAR) has revealed a shocking trend: first-time homebuyers are now the oldest on record. According to the survey, the median age of new homebuyers has increased to 38 years old, up from 35 years old last year. This marks a significant increase from the 1980s, when first-time homebuyers were typically in their late 20s.
Repeat Homebuyers: Also Breaking Records
The survey also found that the ages of repeat homebuyers have reached an all-time high, with the median age peaking at 56 years old, up 49 in 2023. The age of repeat homebuyers has also jumped to 61 years old, up from 58 years old last year.
Why are Homebuyers Getting Older?
The scarcity of housing inventory and housing affordability are likely contributing factors to this trend. "First-time buyers also likely had a difficult time even considering saving for a down payment with inflation, rental costs, student debt and other loan payments," said NAR Deputy Chief Economist Jessica Lautz.
Homebuying Habits: What’s Changing?
The survey also revealed some interesting trends in homebuying behavior. For instance, the number of first-time homebuyers dropped to a record low of 24% between July 2023 and June 2024, down from 32% during the prior year. This represents the lowest share of homebuyers since the organization began gathering data in 1981.
What Does This Mean for the Housing Market?
The increasing age of homebuyers has significant implications for the housing market. As interest rates rise and housing prices continue to soar, it may be more challenging for younger generations to enter the market. This could lead to a shift in the types of homes being built and the types of buyers being targeted by developers.
FAQs
Q: What is the median age of first-time homebuyers?
A: The median age of first-time homebuyers has increased to 38 years old, up from 35 years old last year.
Q: What is the median age of repeat homebuyers?
A: The median age of repeat homebuyers has reached an all-time high, with the median age peaking at 56 years old, up 49 in 2023.
Q: Why are homebuyers getting older?
A: The scarcity of housing inventory and housing affordability are likely contributing factors, as well as other financial burdens such as inflation, rental costs, student debt, and other loan payments.
Q: What does this mean for the housing market?
A: The increasing age of homebuyers may lead to a shift in the types of homes being built and the types of buyers being targeted by developers, as well as potential challenges for younger generations entering the market.
FILE-A for sale sign is displayed outside a home for sale in Los Angeles, California. (Photo by PATRICK T. FALLON/AFP via Getty Images)
