courtesy of the Prescott Area Association of REALTORS®
According to the most recent research from the National Association of REALTORS®, the U.S. housing market is seeing big shifts in buyer demographics. The data highlights notable trends and challenges in the U.S. housing market, revealing that first-time homebuyers now represent just 24% of all buyers, down from 32% last year and the lowest share on record.
With rising home prices and mortgage rates, it’s taking longer for new buyers to enter the market, pushing their average age up to 38, and decreasing the total amount of potential first-time buyers. Meanwhile, repeat buyers also have hit a record high age of 61, reflecting the market’s ongoing affordability issues for all buyers.
According to Jessica Lautz, NAR’s deputy chief economist, today’s housing market is distinctly split between new buyers struggling with high prices and existing homeowners who can leverage their home equity. Married couples make up the majority of buyers, while single female buyers have seen an increase, particularly among first-time buyers, reflecting rising financial independence in single women.
A growing trend in multigenerational living also is taking shape, with 17% of recent buyers choosing to live with family to manage costs or to accommodate aging relatives or young adults moving back home. Family support has become a more prominent factor, with economic pressures driving families to pool resources and prioritize proximity.
On the selling side, a primary motivation is moving closer to family or transitioning to a better home, with remote work enabling location flexibility, too.
Down payments have reached new highs, with a median of 18% across all buyers. Many first-time buyers depend on personal savings or family assistance, and 26% of all buyers paid cash — a record number. For first-time buyers, it’s increasingly common to receive financial help from family or use inherited assets to cover rising upfront costs.
REALTORS® are more essential than ever, with 86% of buyers using their expertise and 88% of all purchases completed with their help. Nearly 90% of buyers express high satisfaction with their agents, and with today’s complex market conditions, many buyers and sellers emphasize the importance of working with an experienced agent.
Nearly all sellers — 90% — work with an agent, reflecting the continued value of professional guidance in navigating the complex buying and selling process, especially in this high-stakes market.
