According to the National Association of Realtors, the median age for repeat home buyers—individuals who have purchased a house before—was 58, dropping from last year’s record of 59. Meanwhile, the average first-home buyer is 35 years old.
The association’s deputy chief economist Jessica Lautz spoke to the Washington Post regarding this issue.
“We are still talking about an incredibly difficult market for first-time buyers to enter, even if there’s slightly less competition…If there’s a multi-offer situation, an all-cash buyer or someone who has a lot of equity is likely to win. And that person is going to be older,” Lautz stated.
Housing affordability has become more difficult with the rise of housing prices and mortgage rates. The association recorded that the household income for those who bought homes jumped by 22 percent. In 2022, the household income of home buyers was $88,000. In 2023, the household income increased to $102,000.
Housing analyst founder and CEO of Whitney Advisory Group Meredith Whitney predicted that 51 percent of people over the age of 50 are interested in downsizing their homes. She told Yahoo Finance’s Invest Conference that she predicts this change will begin during late 2024 and into 2025. Yahoo Finance reported that this trend could bring more than 30 billion housing units back on the market.