A recent report paints a stark picture of America’s housing challenges, highlighting the growing obstacles to homeownership amid an ongoing shortage. According to the National Association of Realtors, homebuyers in the U.S. are now older and wealthier than ever, with the average age of buyers reaching new heights.
The median age of homebuyers has climbed to 56, up from 49 in 2023. First-time homebuyers have also seen their median age rise, reaching 38 compared to 35 the previous year. The age of repeat buyers has similarly increased, now averaging 61, up from 58 in 2023. The report emphasized that this upward trend underscores the growing difficulty for first-time buyers to enter the market, noting that in the 1980s, the typical first-time homebuyer was in their late 20s.
In addition to age, the financial profile of homebuyers has shifted significantly. The report noted that in the past two years, the median household income for first-time homebuyers has surged by $26,000. For this year, the median income for first-time buyers stands at $97,000.
The report also highlighted a persistent racial disparity in homeownership. It revealed that 83% of recent homebuyers were White/Caucasian, up from 81% the previous year, while only 7% identified as Black/African-American. Supporting these findings, a Fast Company report showed that mortgage approvals for Black Americans declined by 16% in 2022, with mortgage denial rates increasing by 2.6 percentage points.
Another notable trend identified in the report was a decline in home purchases by families with children. Married couples accounted for 62% of all homebuyers, followed by 20% single women and 8% single men. The percentage of buyers with children under 18 fell to a record low of 27%.
Multigenerational households, however, have become increasingly common, with 17% of all buyers opting for homes that accommodate multiple generations—a record high. The primary motivations for this trend include saving on costs, caring for elderly family members, and young adults moving back home.