Why First-Time Home Buyers Are Older in 2024

Written by David Dodge

The real estate market has always been a reflection of societal and economic shifts, but the changes we’re seeing today are particularly noteworthy. The 2024 Profile of Home Buyers and Sellers, published by the National Association of Realtors (NAR), sheds light on significant trends that are reshaping the market. Chief among these is the increasing age of first-time home buyers. Once dominated by younger individuals stepping into adulthood, the first-time buyer demographic now has a median age of 38 years—a sharp rise from 29 years in 1981. This trend not only highlights changing financial and lifestyle priorities but also underscores the challenges facing potential homeowners in today’s market.

Why Are First-Time Buyers Getting Older?

Several factors contribute to this trend:

• Rising Home Prices: Real estate prices have outpaced income growth in many regions, making homeownership less accessible for younger generations.
• Student Loan Debt: The burden of educational debt has left many Millennials and Gen Zers delaying major life milestones, including buying a home.
• Tightened Lending Standards: Stricter credit requirements and higher down payment expectations have made it harder for young adults to qualify for mortgages.

These barriers are forcing prospective buyers to spend more years renting, saving for down payments, or improving their financial profiles before they can make their first purchase.

Aging Demographics Across the Board

The aging trend isn’t limited to first-time buyers. Repeat buyers now have a median age of 61 years, and the median age for all home buyers has risen to 56 years. These numbers mark a stark departure from earlier decades, when younger families dominated the market. Several factors explain this phenomenon:

1. Longer Life Expectancy: Older homeowners are staying active in the housing market, either downsizing, upgrading, or relocating to suit their changing needs.
2. Economic Pressures: Many individuals are waiting until their finances stabilize later in life to re-enter the market.
3. Evolving Lifestyles: Empty nesters and retirees are increasingly seeking homes that match their current lifestyle preferences, such as smaller, low-maintenance properties or homes in desirable retirement locations.

Household Composition: The Shift Away From Family-Oriented Housing

Another notable finding in the NAR report is the changing composition of households among buyers. This year, 73% of buyers reported not having children under 18 at home—a substantial increase from 59% in 1981. This trend reflects a shift in priorities among home buyers. Rather than seeking homes primarily to accommodate growing families, today’s buyers are more focused on properties that align with their individual or couple-oriented lifestyles.

For many, this means prioritizing:

• Proximity to work, leisure, or healthcare facilities.
• Homes with features designed for entertaining, hobbies, or remote work.
• Properties in urban or walkable communities over sprawling suburban neighborhoods.

Adapting to an Evolving Market

Navigating these market changes can be challenging for buyers and sellers alike. At MORE, REALTORS®, we specialize in understanding these dynamics and tailoring our services to meet the needs of today’s market participants. Whether you’re a first-time buyer just starting your journey, a seasoned homeowner ready to re-enter the market, or someone exploring options for lifestyle-driven housing, our team is here to guide you every step of the way.

We recognize that today’s real estate decisions require more than just basic knowledge—they require strategic insights and personalized support. From helping you understand market trends to connecting you with financing solutions, we’re dedicated to making your real estate experience as smooth and informed as possible.

How to Stay Ahead in 2024

Understanding the shifting dynamics of the real estate market is critical for making informed decisions. The 2024 Profile of Home Buyers and Sellers provides a wealth of information for anyone planning to buy or sell property this year. For instance:

• Buyers in their 30s and 40s may find that they’re competing against a diverse pool of older, more financially stable individuals.
• Sellers can better tailor their marketing strategies to appeal to buyers without young children or those seeking lifestyle-specific properties.
• Investors can gain insights into emerging trends in buyer preferences, such as urban living and low-maintenance homes.

Take the Next Step

Ready to make your move in today’s evolving real estate market? Contact MORE, REALTORS® today to discuss your goals and explore opportunities tailored to your needs. With the right guidance, you can navigate the complexities of the 2024 market with confidence and clarity.

For a deeper dive into these trends, don’t miss the full NAR report, which includes valuable data and charts to help you understand the big picture. Let’s make 2024 the year you achieve your real estate goals!