A new report shows there has been a generational shift among homebuyers in America -- and they've never been older.
The average age of a homebuyer in the United States hit an all-time high this year of 56 years old, according to the National Association of Realtors' 2024 Profile of Home Buyers and Sellers. That's up dramatically from 49 last year and the highest median age recorded since the NAR began tracking the data in 1981. The median age back then was 36 -- 20 years younger than today.
The average age of a first-time homebuyer in the U.S. also reached an all-time high this year of 38, up from 35 last year, per the report. The age of the repeat buyer is up as well, from 58 last year to an all-time high of 61.
"The U.S. housing market is split into two groups: first-time buyers struggling to enter the market and current homeowners buying with cash," Jessica Lautz, NAR deputy chief economist, said in a statement. "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 of buyers. Meanwhile, current homeowners can more easily make housing trades using built-up housing equity for cash purchases or large down payments on dream homes."
Today, the share of first-time buyers has decreased to a historic low of 24% -- down from 32% last year. When records began in 1981, 44% of buyers were first-time buyers and the average age was 29, nearly 10 years younger than today.
According to the report, the typical home buyer's median household income for 2023 rose to $108,800 from $107,000 in 2022. First-time buyers had a median household income of $97,000, up from $95,900 the prior year and an increase of $26,000 in the last two years. Repeat buyers had a median household income of $114,300, up from $111,700 the previous year.
The share of married couples increased to 62% of all buyers, with single female buyers seeing a slight rise to 20%, according to the report. On the other hand, the share of single males decreased to 8% and unmarried couples dropped to 6%.
The report also noted that 17% of home buyers purchased a multigenerational home, the highest share ever recorded. The top reasons cited were cost savings (36%), to take care of aging parents (25%), children over the age of 18 moving back home (21%), and children over the age of 18 who never left home (20%).
"As home buyers encounter an unaffordable housing market, many are choosing to double up as families," Lautz said. "Cost savings are a major factor, with young adults returning home – or never leaving – due to prohibitive rental and home prices. Meanwhile, elderly parents and relatives are moving in with family members as home buyers reprioritize what matters most to them."
In 2024, the median down payments were 18% for all home buyers, 9% for first-time home buyers and 23% for repeat home buyers – the highest down payments for first-time home buyers since 1997 and repeat home buyers since 2003, according to the report. First-time buyers continue to rely on savings (69%); however, 25% used loans or gifts from friends and family, 21% used financial assets and an all-time high of 7% used inheritances. A record 26% of home buyers paid cash for their homes.
It's not just the age of buyers that's increasing either. The report revealed that the typical age of home sellers reached 63 years, the highest ever recorded.