First-time homebuyers older and fewer than ever before

by Emily Marek

Mature indian man shaking hands with financial advisor at home. Happy smiling couple greeting broker with handshake at home. Multiethnic mid adult man and hispanic woman sealing a contract.

First-time homebuyers account for the lowest percentage of buyers ever recorded, according to the National Association of REALTORS®.

Only 26% of buyers were purchasing their first home in 2022, a significant decrease from the 34% seen in 2021. Additionally, NAR found that the average age of a first-time buyer has risen by three years to an all-time high of 36 years.

“It’s not surprising that the share of first-time buyers shrank to the lowest level ever recorded given the housing market’s combination of historically low inventory, persistently high home prices and rapidly escalating interest rates,” said Jessica Lautz, vice president of demographics and behavioral insight at NAR. “Those who have housing equity hold the cards, and they’ve fared very well in the current real estate market. First-time buyers are older as a result of saving for down payments for longer periods of time or relying on a generational transfer of wealth to propel them into homeownership.”

NAR also found that the average distance buyers are moving has more than tripled, likely due to increased interest in small towns and rural areas. From 2018 to 2021, the average distance moved was only 15 miles. In 2022, that distance has climbed to 50 miles.

Read More Related to This Post

Join the conversation

Oops! We could not locate your form.