T
he age of first-time homebuyers in the US has risen significantly over the past few decades. According to a recent survey by the National Association of Realtors (NAR), the typical first-time buyer is now 38 years old, up from 35 last year and the highest age on record since the survey began in 1981. This trend reflects the challenges faced by young people trying to enter the housing market, where affordability has become a major issue.
The NAR's annual survey of homebuyers and sellers found that married couples still make up the majority of buyers, but only 36% of first-time buyers have children under 18 at home. Single female first-time buyers increased by 5%, while the median household income for these buyers was $97,000. However, despite their higher incomes, first-time buyers accounted for just 24% of all house purchases in 2023-24, down from a historical norm of 40% before 2008.
According to Jessica Lautz, NAR deputy chief economist and vice president of research, "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." The most difficult step for first-time buyers was finding the right property, she noted.
The survey also found that repeat buyers are increasingly using cash to purchase homes, with 31% paying in full. In contrast, typical down payments from first-time buyers reached 9%, the highest figure since 1997. Many of these buyers relied on inheritance or financial assets to finance their purchases, while others cited high rent, student debt, credit card debt, and car loans as obstacles to saving.
The survey also highlighted a growing trend towards multigenerational living, with 17% of all buyers purchasing homes for this purpose. This approach can help solve the issues of housing costs, child care, and elder care in one go. As the US grapples with unaffordable housing, more Americans may turn to multigenerational living as a way to achieve their dream of homeownership.
