T
he median age of first-time homebuyers in the US has reached 38 years old, three years older than in July 2023, according to the National Association of Realtors' 2024 Profile of Home Buyers and Sellers report. This summer, NAR polled 5,390 buyers who purchased a primary residence between July 2023 and June 2024.

    The typical first-time buyer is now wealthier and has a higher income due to the need for bigger down payments in today's market with high home prices. The share of first-time homebuyers on the market decreased over the past year from 32% to 24%, the lowest since NAR began collecting data in 1981.

    Experts attribute this trend to factors such as the nationwide housing shortage, competition against wealthier buyers, and high rent prices making it difficult for younger adults to buy their first home. The housing shortage is "the biggest issue of housing today," said Orphe Divounguy, senior economist at Zillow, with a 4 million-home shortage as of mid-2023.

    Building activity has improved slightly, but the market remains constrained due to fewer homes on the market, putting pressure on home prices. The cost of a typical starter home was $250,000 in August, up from $240,000 a year prior, according to Redfin.

    Repeat homebuyers and sellers dominate the housing market, with 26% of buyers paying cash for their home, an all-time high. U.S. homeowners have a net homeowner equity of over $17.6 trillion, with home equity increasing by $1.3 trillion in the second quarter of this year.

    Baby boomers and retirees are "the winners in today's housing market," said Jessica Lautz, deputy chief economist at NAR, due to their access to home equity and higher incomes. Other factors like high rent costs and elevated debt-to-income ratios make it hard for would-be buyers to save for a home, experts say.

    Rent prices increased faster than tenants' wages during the pandemic, with 31% of renters spending more than 30% of their income on housing. This has led to "renters staying renters for longer" due to affordability being squeezed, said Divounguy.