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The National Association of Realtors’ annual profile of homebuyers and sellers illustrates the affordability issues that homebuyers are facing.
The number of first-time homebuyers dropped to the lowest historical share since NAR data collection began in 1981. The number of first-time homebuyers dipped to 24 percent in 2024 from 32 percent in 2023. The age of first-time homebuyers has increased to 38 years old in 2024 from 35 years old in 2023.
“First-time buyers faced limited inventory, continued erosion of housing affordability, and difficulty saving for a down payment,” the report stated. “The most difficult step, even among successful first-time buyers, was just finding the right property. This year’s successful first-time buyers cited high rent, student debt, credit card debt, and car loans as debt that held them back from saving.”
The income of homebuyers has increased since 2021 with the average income of all homebuyers in 2023 jumping to $108,800. For first-time buyers, average household income rose by $26,000 in the past two years to $97,000 in 2023.
Additionally, the size of down payments has increased. In 2024, the average down payment was the highest for first-time buyers since 1997 and for repeat buyers since 2003.
The typical down payment among all homebuyers rose to 18 percent. Among first-time homebuyers, the typical down payment increased to nine percent while for repeat buyers it jumped to 23 percent.
As the income of homebuyers increased, the age of homebuyers has also increased. Both first-time and repeat buyers had all-time highs for their age groups according to NAR. The median age of first-time homebuyers is 38 years old while repeat buyers’ median age rose to 61 years old.
“First-time home buyers are older, likely because they have to save for longer periods of time and are approaching a market with limited inventory in which they may have to search longer to find a home,” the report stated. “Repeat buyers who are deciding to purchase are making moves later in life, perhaps in retirement.”
