Forget everything you thought you knew about who’s buying homes today, because the 2023 buyer is a 49-year-old, college-educated, suburban-dwelling married couple with a six-figure income and less competition from first-timers than at any point in the last four decades.
Key Takeaways
- In 2023, the median age of all home buyers was 49 years, up from 44 in 1981
- 26% of home buyers were first-time buyers in 2023, the lowest share since NAR began tracking in 1981
- The median household income of home buyers in 2023 was $107,000, up 6% from 2022
- Repeat buyers had a median income of $115,000 in 2023
- 75% of buyers looked at homes online first in 2023
- The typical home buyer searched for 10 weeks and viewed 9 homes in 2023
- Existing-home sales reached 4.09 million in 2023, down 19% from 2022
- Median existing-home price was $389,800 in 2023, up 5.1% YoY
- Housing inventory averaged 3.96 months supply in 2023
- The median sales price of existing homes purchased by first-time buyers was $317,000 in 2023
- Repeat buyers paid a median $407,500 in 2023
- 87% of buyers financed with a mortgage in 2023
- 72% of buyers plan to stay in their home for 10+ years
- Home price growth expected at 2% in 2024
- Mortgage rates forecasted to average 6.5% in 2024
Today's home buyers are older and richer, facing high costs with a record-low share of first-timers.
Demographics
1In 2023, the median age of all home buyers was 49 years, up from 44 in 1981
Verified226% of home buyers were first-time buyers in 2023, the lowest share since NAR began tracking in 1981
Verified3The median household income of home buyers in 2023 was $107,000, up 6% from 2022
Verified443% of buyers were married couples in 2023
Directional5Single female buyers made up 19% of all buyers in 2023
Single source69% of home buyers were Hispanic/Latino in 2023
Verified7Baby Boomers accounted for 39% of home buyers in 2023
Verified821% of buyers were Gen Z or younger Millennials in 2023
Verified962% of buyers were married or living with a partner in 2023
Directional10The average family size of home buyers was 2.6 people in 2023
Single source1181% of buyers owned a home previously before purchasing in 2023
Verified1215% of buyers were veterans or active military in 2023
Verified13Urban buyers made up 14% of total buyers in 2023
Verified14Suburban buyers comprised 46% in 2023
Directional1590% of buyers were White/Caucasian in 2023
Single source16Asian buyers were 7% in 2023
Verified17Black/African American buyers were 4% in 2023
Verified1857% of buyers had children under 18 living at home in 2023
Verified19The median education level was a bachelor's degree for buyers in 2023
Directional2089% of buyers were U.S. citizens in 2023
Single source2124% of buyers were self-employed in 2023
Verified22The share of buyers aged 23-31 was 15% in 2023
Verified23Buyers aged 65+ were 24% in 2023
Verified2451% of buyers were college graduates in 2023
Directional2537% of buyers had children over 18 at home in 2023
Single source26Rural buyers were 12% in 2023
Verified2768% of buyers were employed full-time in 2023
Verified28Single male buyers were 10% in 2023
Verified296% of buyers were retired in 2023
Directional30The median age of first-time buyers was 38 in 2023
Single sourceDemographics Interpretation
The American dream of homeownership is increasingly becoming a middle-aged, high-income relay race where the starting baton is now handed off at 38, leaving younger, single, and more diverse runners stuck at the gate.
Financing and Affordability
1The median sales price of existing homes purchased by first-time buyers was $317,000 in 2023
Verified2Repeat buyers paid a median $407,500 in 2023
Verified387% of buyers financed with a mortgage in 2023
Verified4Fixed-rate mortgages were used by 93% of financed buyers in 2023
Directional5The average 30-year fixed mortgage rate was 7.0% in 2023
Single source6Down payment averaged 14% of purchase price in 2023
Verified7First-time buyers' average down payment was 7% in 2023
Verified823% of buyers used savings for down payment in 2023
Verified916% used gift funds from family in 2023
Directional10FHA loans were used by 18% of buyers in 2023
Single source11VA loans comprised 12% of buyer financing in 2023
Verified12Conventional loans were 54% in 2023
Verified1338% of buyers said high mortgage rates were a major barrier in 2023
Verified14Affordability index averaged 98.3 in 2023
Directional15Housing affordability fell 15% YoY in 2023
Single source16Median monthly housing payment was $2,120 in 2023
Verified1726% of buyers increased their down payment to get approved in 2023
Verified18Credit score average for buyers was 758 in 2023
Verified19Debt-to-income ratio averaged 36% for buyers in 2023
Directional2042% of buyers delayed purchase due to rates in 2023
Single source21Closing costs averaged 2-5% of loan amount in 2023
Verified2219% of buyers shopped rates with 3+ lenders in 2023
Verified23PMI was required for 11% of financed purchases in 2023
Verified24Refinance share of originations was 16% in 2023
Directional25Purchase originations totaled 1.52 million in Q4 2023
Single source26ARM share was 7.5% of new loans in 2023
Verified2755% of buyers said high home prices were a barrier in 2023
Verified28Low down payment loans (<5%) were 22% in 2023
Verified2945% of young buyers (under 35) faced affordability issues in 2023
Directional30Effective property tax rate averaged 1.1% for buyers in 2023
Single source3121% of first-time buyers used family assistance for closing costs in 2023
VerifiedFinancing and Affordability Interpretation
The 2023 affordability nosedive saw first-timers clinging to thin 7% down payments while repeat buyers leveraged their equity, creating a market where the bank of mom and dad became a crucial, if unofficial, secondary lender.
Future Outlook and Predictions
172% of buyers plan to stay in their home for 10+ years
Verified2Home price growth expected at 2% in 2024
Verified3Mortgage rates forecasted to average 6.5% in 2024
Verified4Existing sales projected at 4.1 million in 2024
Directional5First-time buyer share to rise to 30% in 2024
Single source6Inventory to reach 4.5 months supply by end 2024
Verified7Homeownership rate to tick up to 66% in 2024
Verified8New construction starts forecasted at 1.45 million in 2024
Verified9Affordability index to improve 10% in 2024
Directional1052% of buyers expect values to rise in next 5 years
Single source11Rent growth to slow to 2.5% in 2024
Verified12Builder confidence to average 50 in 2024
Verified13FHA originations projected at 950,000 in 2024
Verified14South to lead regional price growth at 3.5% in 2024
Directional15Investor activity to decline to 14% share in 2024
Single source16All-cash sales to drop to 25% in 2024
Verified17Gen Z buyers to increase to 5% share by 2025
Verified18Remote work buyers to seek larger homes in 2024
Verified19Multifamily completions to peak at 500,000 units in 2024
Directional20Delinquency rates to remain under 4% through 2024
Single source21Price-to-income ratio to ease from 5.5x in 2023
Verified2260% of renters plan to buy within 2 years
Verified23ARM usage to rise to 10% if rates stay high in 2024
Verified24Suburban migration to continue with 48% preference in 2024
Directional25Energy-efficient features demanded by 55% of future buyers
Single source26Case-Shiller index growth at 3% projected for 2024
Verified27Down payment assistance programs to aid 25% more first-timers in 2024
Verified28Jumbo market to grow 15% with rate cuts
Verified2935% of buyers anticipate refinancing within 2 years
DirectionalFuture Outlook and Predictions Interpretation
After a long winter of market discontent, the 2024 housing forecast suggests a slow but genuine thaw, where patient first-time buyers, motivated by slightly better affordability and a commitment to putting down roots, will cautiously wade back into a market that’s finally remembering what normal feels like.
Market Conditions
1Existing-home sales reached 4.09 million in 2023, down 19% from 2022
Verified2Median existing-home price was $389,800 in 2023, up 5.1% YoY
Verified3Housing inventory averaged 3.96 months supply in 2023
Verified4Total housing starts were 1.41 million units in 2023
Directional5Homeownership rate was 65.7% in Q4 2023
Single source6New home sales totaled 668,000 units in 2023
Verified7Pending home sales fell 4.3% MoM in December 2023
Verified8Case-Shiller Home Price Index rose 5.6% YoY in November 2023
Verified9Mortgage delinquency rate was 3.72% in Q4 2023
Directional10Builder confidence index averaged 42 in 2023
Single source11Rents increased 3.2% YoY in 2023
Verified12Vacancy rate for rental properties was 6.6% in Q4 2023
Verified13Regional median home prices: Northeast $435,000 in 2023
Verified14Midwest median $290,000 in 2023
Directional15South median $375,000 in 2023
Single source16West median $640,000 in 2023
Verified17Inventory of homes for sale rose 13.4% YoY in December 2023
Verified18Months supply of inventory hit 3.8 months in January 2024
Verified19FHA loan originations totaled 912,000 in FY2023
Directional20VA loan volume was 389,000 in 2023
Single source21Jumbo loan share was 12% of originations in 2023
Verified22Distressed sales were 2% of all transactions in 2023
Verified23All-cash sales were 28% in 2023
Verified24Investor purchases were 16% of sales in 2023
Directional25Institutional investor share was 3% in 2023
Single source26Median listing price on Zillow was $419,200 in 2023 average
Verified27Redfin's measure of competition index averaged 65 in 2023
Verified28Home price growth slowed to 4.3% YoY by end of 2023
VerifiedMarket Conditions Interpretation
In a housing market drunk on scarcity, fewer people got to pass out on the couch this year, but they definitely paid more for the privilege.
Purchasing Behavior
1Repeat buyers had a median income of $115,000 in 2023
Verified275% of buyers looked at homes online first in 2023
Verified3The typical home buyer searched for 10 weeks and viewed 9 homes in 2023
Verified451% of buyers used a real estate agent in 2023
Directional514% of buyers purchased without a real estate agent in 2023
Single source696% of buyers were satisfied with their home purchase after one year in 2023
Verified7FSBO sales accounted for 7% of total sales in 2023
Verified833% of buyers offered full price or more in 2023
Verified9The typical buyer made 2 offers in 2023
Directional1020% of buyers waived the appraisal contingency in 2023
Single source1152% of buyers used Realtor.com or Zillow in their search in 2023
Verified1289% of buyers said their agent explained the process well in 2023
Verified13First-time buyers typically bought homes with 1,800 square feet in 2023
Verified14Repeat buyers purchased homes with median 2,100 square feet in 2023
Directional1528% of buyers moved to a different state in 2023
Single source1623% of buyers moved less than 10 miles in 2023
Verified17The top reason for buying was to own the home at 81% in 2023
Verified1813% bought for a job-related move in 2023
Verified1954% of buyers increased their offer price after initial rejection in 2023
Directional2041% of buyers said finding the right neighborhood was difficult in 2023
Single source2134% contacted only one agent before hiring in 2023
Verified2272% of buyers used a smartphone or tablet in their search in 2023
Verified2311% of buyers attended open houses as primary search method in 2023
Verified24Repeat buyers were on the market for 6 weeks on average in 2023
Directional2565% of buyers said price was the most important factor in 2023
Single source2660% of buyers wanted a home with a garage in 2023
Verified2717% wanted a pool in 2023
Verified28Single-family homes were desired by 89% of buyers in 2023
Verified29The median days on market for buyer purchases was 26 days in 2023
Directional3055% of buyers compromised on size of home in 2023
Single sourcePurchasing Behavior Interpretation
The homebuying process of 2023 paints a picture of determined, tech-savvy buyers, who, armed with smartphones and realistic budgets, navigated a competitive market by making quick compromises on square footage but stubbornly few on price, all while placing immense trust in the agents who guided them to a purchase that, overwhelmingly, left them satisfied a year later.
Sources & References
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