The average age of homebuyers is now 56, up from 49 in 2023, according to the National Association of Realtors’ annual state-of-the-market report released Monday. That’s a historic high, up from an average age in the low-to-mid 40s in the early 2010s. The median age of first-time buyers also rose from 35 to 38, while the share of first-timers dropped from 32% to 24% of all buyers for the year ending July 2024.
That marks the lowest percentage since NAR started tracking the metric in 1981. That’s largely due to rising homeownership costs, he says. The median U.S. home price is now $435,000, per NAR — up 39% since 2020 — while the average 30-year fixed mortgage rate has doubled in that time.
Younger homebuyers struggle to afford a down payment and compete on bids
High homeownership costs are especially challenging for younger buyers, as many struggle to save for a down payment while juggling student loan debt, high rent prices, and lower wages early in their careers. The biggest obstacle to homeownership for younger buyers is saving for a down payment. An 18% down payment — the median percentage buyers put down, according to NAR — on a $435,000 home comes to $78,300. That’s a significant expense, nearly matching the annual U.S. median household income of $80,610, per U.S. Census Bureau data.
Younger buyers are also competing with wealthier all-cash buyers, whose share of home purchases has increased from 20% to 26% in the past year, the study says. Perhaps unsurprisingly, a quarter of first-time buyers have relied on a gift or loan from a relative or friend to afford a down payment, the data shows. Saving for a down payment can be challenging without an outsized income, which is evident in the data.
