What the Rising Age of First-Time Home Buyers Means for the Real Estate Market

Blog posted On December 13, 2024

According to the National Association of Realtors’ 2024 Profile of Home Buyers and Sellers report, the average age of first-time home buyers has reached 38 years old, a jump from the year prior (35 last year). Let’s decode some of the reasons the median age has jumped up and how this statistic affects the current state of the real estate market.

Let’s Evaluate the Statistics

Along with NAR’s reporting of this increased age average for first-time buyers, there’s a few other statistics to consider with this ever-changing market, including some positives:

• The overall average age of home buyers also hit an all-time high, clocking in at 56 years old.
• Married couples increased to 62% of all buyers.
• 17% of home buyers purchased a multigenerational home, citing the below reasons:
  • 38% reported cost savings,
  • 25% are taking care of aging parents, and
  • 41% are children over the age of 18 moving back home or those who never left home in the first place.
• 86% of buyers utilized real estate agents in their home buying process.
• As for down payment percentages, this changed depending on the buyer:
  • 18% for all home buyers
  • 9% for first-time buyers
  • 23% for repeat home buyers
• A record 26% of home buyers paid cash for their new homes.
• U.S. homeowners are sitting on $32 trillion in home equity, a fresh all-time high.

What Does this Data Mean for Hopeful Home Buyers?

In this constantly changing market, there’s silver linings in between the rising averages. For existing homeowners, equity is at an all-time high, giving them some helpful leverage in the buying market whether they decide to upgrade or downsize. Another positive: the importance of real estate agents is evident, with 86% of home buyers using agents to help them in the housing search.  Realtors can provide that critical knowledge and expertise to help home buyers and sellers alike maneuver through challenging housing markets.

How Can First-Time Home Buyers Get Ahead?

Despite repeat home buyers having the advantage of equity, first-time home buyers can take advantage of specific programs that tailor to their specific situations. Down payment assistance options exist in every state and can be relied upon for qualified buyers to give them a leg-up in this economy. Our loan professionals are always available to provide the resources necessary to pinpoint the best programs for your lifestyle, especially if you’re looking to buy your first home. Additionally, as a first-time home buyer, you shouldn’t be looking to find your perfect dream home. It’s more practical that your first home be a starter home; you can also adjust your expectations about the location, amenities, and layout. You might also want to consider a fixer-upper home; many use starter homes that need a little love as a great way to learn how to use their hands and tools to create value in a home. Remember, it doesn’t have to be your forever home. A starter home can be your leverage that launches you into your dream home down the line. With the right mindset and levelled expectations, first-time homeownership is absolutely possible in this economy. And with these tips, you don’t have to wait until 38 to hop on that train. It just requires creative thinking and thorough financial planning with your go-to loan experts.

Source: CNBC, National Association of REALTORS, CNBC