First-Time Homebuyers Drop to Record Low, Average Age Hits Historic High

1. Historic Trends in Homebuying:
   • First-time homebuyer market share dropped to a record low of 24% (from 32% last year).
   • Median age of homebuyers reached all-time highs:
     • Overall: 56 years (up from 49).
     • First-time buyers: 38 years (up from 35).
     • Repeat buyers: 61 years (up from 58).
2. Income and Affordability Challenges:
   • Median household income for homebuyers in 2023:
     • First-time buyers: $97,000 (up $26,000 over two years).
     • Repeat buyers: $114,300 (up from $111,700 in 2022).
   • Median down payments:
     • First-time buyers: 9% (highest since 1997).
     • Repeat buyers: 23% (highest since 2003).
   • 26% of buyers paid cash, a record high.
3. Demographic Shifts:
   • Married couples comprised 62% of buyers; single females rose to 20%.
   • Ethnic breakdown of recent buyers: 83% White, 7% Black, 6% Hispanic, 4% Asian.
   • 73% of buyers did not have children under 18 at home, the highest recorded.
   • Multigenerational home purchases hit a record 17%, driven by cost savings, aging parents, and adult children living at home.
4. Agent and Seller Insights:
   • 86% of buyers used real estate agents, the highest of any information source.
   • 88% of transactions were broker-assisted, with 90% satisfaction rates.
   • 90% of sellers used an agent; For-Sale-By-Owner (FSBO) sales hit a record low of 6%.
5. Motivations and Trends in Selling:
   • Median seller age rose to 63 years, a new high.
   • Top reasons for selling:
     • Closer proximity to family/friends (23%).
     • Home too small (12%) or too large (11%).
   • Remote work and family support are increasingly influencing buying and selling decisions.
6. Cost Pressures and Resourcefulness:
   • First-time buyers heavily relied on:
     • Personal savings (69%).
     • Loans or gifts from family (25%).
     • Financial assets (21%).
     • Inheritances (7%, an all-time high).
7. Changing Priorities:
   • Family support and proximity to loved ones were pivotal in both buying and selling decisions, reflecting evolving lifestyle preferences and market conditions.

This report underscores how affordability challenges and demographic shifts are reshaping the U.S. housing market, with real estate agents playing a crucial role in navigating complex transactions.