A new report details a grim reality as America continues to deal with a housing shortage and financial hurdles for people looking to own a home. According to the National Association of Realtors, homebuyers are now older and wealthier than ever, as the average age of homebuyers has reached an all-time high.
The median buyer age has increased to a peak of 56, up from 49 in 2023. The median first-time buyer age increased to 38, up from 35 in 2023, and the repeat buyer age increased to 61, up from 58 in 2023.
“Underscoring the hurdles to entering the housing market, first-time homebuyers’ median age reached an all-time high of 38 years old. In the 1980s, the typical first-time homebuyer was in their late 20s,” the report reads.
But age isn’t the only factor that has increased. It’s also the median income of those who are buying.
“In the last two years, first-time homebuyer household income has grown by $26,000. This year’s report shows that the median household income of first-time homebuyers was $97,000,” the report states.
The Race Gap For Homebuyers Is Increasing
Unfortunately, there is still a race gap between white homeowners and Black homeowners.
“Overall, 83% of buyers were White/Caucasian, up from 81 percent last year,” the report reads. Only 7% of recent buyers identified as Black/African-American.
According to a report from Fast Company, mortgages for Black Americans fell by 16% in 2022. Mortgage denial rates, however, increased by 2.6 percentage points.
Another dramatic change was revealed in the report: buyers with children are not purchasing homes as much.
Among all homebuyers, 62% are married couples, 20% are single women, and 8% are single men. The share of buyers with children under 18 dropped to the lowest level at 27% of all buyers.
Multigenerational living remains popular, with an all-time high of 17% of all buyers purchasing a home that will house different generations, the report reads. The most common reasons are cost savings, elder care, and young adults moving back.
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