The Age of a Typical First-Time Homebuyer Has Changed
It’s no secret that it takes longer for many people to buy starter homes now than during their parents’ generation, even if buyers focus on more affordable markets.
And now, according to new data, the median age of a first-time homebuyer in 2024 is at an all-time high, thanks to rising housing costs and other factors.
With limited real estate inventory, more expensive homes, and wealthy competitors vying for the same sparse inventory, people are waiting significantly longer to buy their first home, according to the National Association of Realtors’ 2024 Profile of Home Buyers and Sellers report.
The median age of a first-time home buyer climbed to 38 years old, a whopping three years older than the median first-time homebuyers in July 2023. That means it took just a little over a year for the median age to jump up by three years. To put that number into perspective, the report pointed out that the average first-time homebuyer was in their late 20s during the 1980s, showing just how much the current housing market has impacted affordability.
The researchers surveyed 5,390 people who bought their main home between July 2023 and June 2024 and found that a shortage of homes (particularly due to slowed construction) had led to fierce competition over those homes and thus rising rent prices, all contributing to the delay in homeownership.
Not only are the average first-time homebuyers older than in years past, but they’re also wealthier. Amid Zillow’s recent report that the average U.S. starter home is now $412,300, it’s unsurprising that these financial constraints have also caused the percentage of first-time homebuyers to decrease from 32% to 24% in just one year.
While these findings are grim, a July report from WalletHub called out several cities for being the best places for first-time homebuyers to purchase a starter house. Using June 2024 data from a number of government sources, including the U.S. Census Bureau, the U.S. Department of Housing and Urban Development, and the National Association of Realtors, WalletHub named Florida cities like Palm Bay, Cape Coral, Port St. Lucie, and Tampa as hot spots for first-time purchasers, thanks to thriving construction, a bigger pool of homes in the real estate market, and an affordable quality of life.
The housing market might be challenging right now, but first-time homebuyers are making it work by shopping within their budget — and saving up for unexpected costs, which can be even more expensive than a down payment. Plus, you can also consider cities with more housing inventory, making it potentially cheaper to afford your dream starter home.
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