T
he National Association of Realtors' (NAR) annual profile of homebuyers reveals a challenging market for would-be homeowners, with several new records highlighting the changing landscape and demographics of American homebuyers.
Key statistics include:
* First-time buyers accounted for just 24% of all buyers, a record low, down from 32% the previous year.
* The median age of first-time buyers increased to 38, another record high, while the typical repeat buyer was 61 years old, also a new high.
* Buyers are waiting longer to make a purchase, with the share of childless buyers reaching a record 73%, up from 65% in 2019.
The housing market's stubbornly low inventory and high interest rates have taken a toll on first-time buyers. The typical age of both first-time and repeat buyers has increased, while the share of buyers with young children at home has reached a record low.
Married couples accounted for 62% of all buyers, up slightly from last year, but the share of married first-time homebuyers dipped to 50%. Single-women buyers posted the biggest change, increasing from 19% to 24% of all buyers. The racial and ethnic makeup of buyers has remained relatively unchanged, with white buyers accounting for 83% of all buyers.
Some data points suggest a return to normalcy, including:
* The typical home purchased was built in the early-to-mid '90s again, after a notable dip during the inventory crunch.
* The urban exodus trend largely reverted to previous patterns in 2023, with more people choosing to purchase homes in urban areas than in the years leading up to the pandemic.
First-time buyers are putting down more cash to secure a home, with typical down payments reaching 9% of the home's purchase price, the highest level since 1997.
