- The average age of homebuyers in the United States is now 18 years older than it was in 1981, according to a study by the National Association of Realtors.
- Bankrate senior economic analyst Mark Hamrick said rising higher education costs, job insecurity and the burden of saving for retirement are to blame.
The average age of a homebuyer in the United States is now 49, 18 years older than it was in 1981, as inflation, college costs and home prices make it harder for young people to get their foot on the ladder.
A study by the National Association of Realtors found that the median age of all homebuyers has steadily increased over the past 40 years.
The most striking contrast is among first-time buyers, whose median age is 31 in 2013, up from 29 in 1981 to 35 today.
NAR analyzed this as “a combination of tighter credit conditions and a lack of inventory on the market leading to higher home sales prices.”
The median home price this year was $410,200, the second highest since NAR began tracking the data.
The average age of homebuyers has steadily increased over the past 40 years
This year, just 3% of buyers were between the ages of 18 and 24.
NAR’s Jessica Lautz said the number of first-time buyers is at “historic lows,” but up slightly from last year.
“First-time buyers have tiptoed back into the market this year with less competition and fewer multiple-offer scenarios,” he said.
“The percentage of first-time buyers is still near historic lows, but higher than last year.”
Not only is the population aging, but first-time buyers are also becoming wealthier.
“In particular, today’s first-time buyers have nearly $25,000 higher household incomes than last year and are more likely to use their financial assets to enter the market,” Lautz said.
She told Axios: “Today we’re talking about a different profile of homebuyers. We’re displacing people who might be looking for affordable properties.”
Rising higher education costs, job insecurity and the burden of saving for retirement are “making it more difficult for young people to gain a foothold in personal finance,” said Mark Hamrick, senior economic analyst at Bankrate. said.
House prices were the second highest on record this year, making it harder for young people to get a foot on the ladder
This comes after analyst Meredith Whitney warned that young people are missing out on $21 trillion worth of wealth that older generations have built through homeownership.
Whitney, once dubbed the “oracle of Wall Street” for accurately predicting the 2008 financial crisis, said young people were being squeezed out of the housing market amid rising mortgage rates and soaring prices. .
The average age of repeat buyers has also increased from 36 years old in 1981 to 58 years old this year.
This number is part of an overall shift in the demographics of the average American homebuyer.
While buying a home may have traditionally been the preserve of married couples, single women are now increasingly homeowners in the United States.
Female buyers of real estate alone now represent 19% of U.S. homebuyers, nearly twice as many as single men
According to a new study, female buyers alone account for 19% of home buyers in the United States, nearly twice as many as single men. data From the National Association of Realtors (NAR).
This is a stark contrast to 40 years ago, when the share of single women and men buying a home was about the same at 11% and 10%, respectively. As of 2023, the proportion of single men buying real estate will remain stable at 10%.
The percentage of recent buyers who are married couples also fell to 59%, the lowest level since 2010, according to NAR.
In 1981, when the organization began analyzing buyer and seller profiles, married couples accounted for 73 percent of homeowners.