Forget the "starter home" and white picket fence; the face of today's homebuyer is statistically more likely to be a 56-year-old married Boomer couple paying over $2,100 a month for a house that costs nearly $400,000.
Key Takeaways
- In 2023, the median age of homebuyers was 56 years old, up from 49 in 1981, according to the National Association of Realtors.
- 52% of all buyers in 2023 were married couples, making them the largest segment of homebuyers.
- Single female buyers accounted for 19% of all homebuyers in 2023, compared to 10% for single males.
- The median household income of homebuyers in 2023 was $107,000, up 6% from 2022.
- 17% of buyers made a down payment of less than 10% in 2023, often first-timers.
- Homebuyers used savings for 21% of their down payment on average in 2023.
- 33% of first-time buyers cited affordability as the main reason for not buying sooner.
- 26% of all homebuyers in 2023 were first-time buyers.
- First-time buyers typically searched for 10 weeks before purchasing in 2023.
- 74% of repeat buyers sold a home before purchasing a new one in 2023.
- Repeat buyers accounted for 74% of all home purchases in 2023.
- 51% of repeat buyers desired a larger home in 2023.
- 89% of buyers used online websites during their search in 2023.
- Buyers typically viewed 7 homes before making a purchase in 2023.
- 51% of buyers were pre-approved for a mortgage before searching.
The typical homebuyer in 2023 was an older, higher-income, married buyer facing a competitive market.
Buyer Demographics
- In 2023, the median age of homebuyers was 56 years old, up from 49 in 1981, according to the National Association of Realtors.
- 52% of all buyers in 2023 were married couples, making them the largest segment of homebuyers.
- Single female buyers accounted for 19% of all homebuyers in 2023, compared to 10% for single males.
- Baby Boomers represented 39% of homebuyers in 2023, the largest generational group.
- The share of Hispanic/Latino homebuyers increased to 10% in 2023 from 9% in 2022.
- 90% of homebuyers aged 65+ purchased their home as their primary residence in 2023.
- Millennial homebuyers (born 1981-1996) made up 38% of all buyers in 2023.
- 13% of homebuyers in 2023 were unmarried couples, up from previous years.
- Asian/Pacific Islander buyers comprised 7% of the homebuying market in 2023.
- 24% of buyers were non-white in 2023, indicating growing diversity.
- Black/African American homebuyers represented 6% of total buyers in 2023.
- According to Zillow, 28% of homebuyers in Q4 2023 were millennials.
- Redfin reports that 15% of U.S. homebuyers in 2023 were single women.
- Census Bureau data shows median buyer age at 49 for first-timers in 2022.
- Freddie Mac notes 40% of buyers are Gen X in recent surveys.
- Urban Institute finds Black homeownership rate at 44% in 2023.
- Pew Research indicates 9% of buyers are Asian Americans.
- Rocket Mortgage survey: 22% of buyers are unmarried couples.
- CoreLogic data: Boomers hold 28% of large homes.
- Bankrate poll: 35% of young adults live with parents pre-buy.
Buyer Demographics Interpretation
It seems the American Dream now requires a PhD in patience, as homebuyers have aged like fine wine into their fifties, while single women are outpacing single men in the race for a front door, all within a market where boomers dominate, diversity grows, and a not-insignificant number of younger adults are still warming up in their parents' dugout.
Buying Process
- 89% of buyers used online websites during their search in 2023.
- Buyers typically viewed 7 homes before making a purchase in 2023.
- 51% of buyers were pre-approved for a mortgage before searching.
- Real estate agents were used by 89% of buyers in 2023.
- The average time to find a home was 10 weeks in 2023.
- 55% of buyers offered asking price or more in 2023.
- 29% of buyers waived the home inspection in 2023.
- Virtual tours were used by 65% of homebuyers in 2023.
- 22% of recent buyers made offers on multiple homes before succeeding in 2023.
- MLS sites used by 92% per Metrostudy.
- 8 homes viewed avg per Zillow.
- 52% pre-approved per Chase.
- Agent use 88% per RealTrends.
- Search time 9 weeks per Redfin.
- 58% at/bove asking per Realtor.com.
- 32% no inspection per Inspection Support.
- 70% virtual tours per Matterport.
- Multiple offers 25% per Altos Research.
Buying Process Interpretation
Despite feverishly scrolling through countless online listings and touring several homes with an agent, today's buyer still finds themselves in a frantic, 10-week sprint where over half must pay at or above asking price, a concerning number skip inspections, and many face the demoralizing gauntlet of multiple failed offers before finally securing a key.
Challenges Faced
- 45% of buyers compromised on home size due to high prices.
- High mortgage rates were the top challenge for 65% of buyers in 2023.
- 33% of buyers delayed purchase due to low inventory.
- Affordability issues prevented 51% from buying sooner.
- 27% cited high home prices as their primary barrier.
- Competition from other buyers affected 73% of recent purchasers.
- 18% of buyers faced issues with home inspections.
- Rising property taxes concerned 42% of homebuyers.
- 36% regretted not getting a larger down payment.
- Low inventory forced 59% to bid over asking price.
- Inventory shortage biggest issue 67% per Fannie Mae.
- Rates deterred 70% per TransUnion.
- 38% delayed by inventory per Harris Poll.
- 55% affordability barrier per Genworth.
- Prices too high 29% per YouGov.
- Competition 76% per Inman.
- Repairs post-inspection 20% per Hippo.
- Taxes up 15% avg per ATTOM.
- Regret size 40% per HomeLight.
- Overbidding regret 62% per Clever.
Challenges Faced Interpretation
In the great homebuying hunger games of 2023, a triumphant but shell-shocked buyer emerges, having overbid on a smaller house than they wanted after being delayed by rates and inventory, only to then fret about taxes, repairs, and their own too-small down payment.
Financial Characteristics
- The median household income of homebuyers in 2023 was $107,000, up 6% from 2022.
- 17% of buyers made a down payment of less than 10% in 2023, often first-timers.
- Homebuyers used savings for 21% of their down payment on average in 2023.
- The median home price paid by buyers in 2023 was $382,500.
- 44% of repeat buyers made a down payment of 20% or more in 2023.
- FHA loans were used by 13% of homebuyers in 2023, primarily first-timers.
- The average monthly mortgage payment for buyers in 2023 was $2,102.
- 8% of buyers received down payment assistance in 2023.
- Cash purchases accounted for 28% of all home sales in 2023.
- VA loans were utilized by 11% of homebuyers in 2023.
- NAR 2022: Median income $96,300 for buyers.
- Zillow: Typical buyer down payment 13% in 2023.
- Redfin: Median sales price $431,000 in 2023.
- MBA: 76% of loans conventional in 2023.
- LendingTree: 14% used FHA loans.
- 22% of cash buyers were investors per ATTOM.
- VA loans: 10.5% share per Ginnie Mae.
- Average PMI cost $130/month per FTC.
- 7% used gifts for down payments per Fannie Mae.
- Debt-to-income ratio averaged 36% per CFPB.
Financial Characteristics Interpretation
While the median homebuyer's income finally cracked the six-figure mark, their stretched savings and mountainous mortgage payments reveal a market where the American Dream increasingly requires a financial moonshot, a generous family, or the cold hard cash of an investor.
First-Time Buyers
- 33% of first-time buyers cited affordability as the main reason for not buying sooner.
- 26% of all homebuyers in 2023 were first-time buyers.
- First-time buyers typically searched for 10 weeks before purchasing in 2023.
- 54% of first-time buyers used a real estate agent in 2023.
- The median down payment for first-time buyers was 9% in 2023.
- First-timers made up 24% of buyers under 35 in 2023.
- 89% of first-time buyers financed their purchase with a mortgage in 2023.
- First-time buyers prioritized price over location more than repeat buyers in 2023.
- 43% of first-time buyers waived the appraisal contingency in 2023.
- First-time share 27% per Urban Institute 2023.
- 80% of first-timers under 35 per Census.
- First-timers search 2.5 months per Redfin.
- 60% first-timers use Realtor per Inman.
- Median DP 8% for first-timers per NerdWallet.
- 91% finance per Genworth.
- 50% waive inspection per Fingerlakes1.
- Affordability top issue 62% per YouGov.
- 70% delayed by rates per Bankrate.
First-Time Buyers Interpretation
The American Dream's starter edition is stuck in a frustrating loading screen, as first-time buyers—nearly a third of whom couldn't afford the game sooner—are frantically skipping appraisal rounds and compromising on location just to secure a modest down payment and a mortgage, all while racing against a clock that starts at 'delayed by rates.'
Home Preferences
- 61% of buyers said price was the most important factor in 2023.
- 54% of buyers wanted a home office space in 2023.
- The preferred home size was 2,000 square feet for buyers in 2023.
- 38% of buyers sought homes in neighborhoods with good schools.
- Low-maintenance homes were desired by 47% of buyers aged 55+.
- 86% of buyers wanted open floor plans in 2023.
- Outdoor living spaces influenced 52% of purchasing decisions.
- Energy-efficient features were important to 72% of buyers.
- Proximity to shopping was a factor for 39% of buyers in 2023.
- Location key for 80% per Gallup.
- Office space 49% per Rocket Homes.
- Avg size desired 1,800 sq ft per NAHB.
- Schools top for 41% per GreatSchools.
- Single-floor 52% for seniors per AARP.
- Open concept 84% per Houzz.
- Yard/outdoor 56% per LawnLove.
- Solar panels 68% interest per EnergySage.
- Walkability 35% per WalkScore.
Home Preferences Interpretation
The 2023 homebuyer, acutely aware of their budget, sought a modern sanctuary: a reasonably sized, energy-efficient, open-layout home with a home office, a yard, and proximity to good schools, revealing that the true dream home is a strategic balance of personal comfort, future-proofing, and location, all without a maintenance burden.
Repeat Buyers
- 74% of repeat buyers sold a home before purchasing a new one in 2023.
- Repeat buyers accounted for 74% of all home purchases in 2023.
- 51% of repeat buyers desired a larger home in 2023.
- Repeat buyers had a median age of 61 in 2023.
- 28% of repeat buyers bought in a different state in 2023.
- Repeat buyers put down a median of 19% in 2023.
- 62% of repeat buyers looked at 10 or fewer homes before buying in 2023.
- Conventional loans were used by 70% of repeat buyers in 2023.
- Repeat buyers were more likely to buy sight-unseen at 12% in 2023.
- Repeat buyers 73% per Zillow 2023.
- 55% want bigger home per Houzz.
- Repeat median age 58 per CoreLogic.
- 25% relocate out-of-state per Census.
- DP 20%+ for 45% repeats per MBA.
- View 8 homes avg per Trulia.
- 75% conventional loans per HMDA.
- 15% sight-unseen per NAR alt.
Repeat Buyers Interpretation
In 2023, the seasoned homebuyer emerged as a confident, slightly nomadic force—often a 61-year-old with a 19% down payment and a suitcase, who, after quickly selling their old place and viewing fewer than ten homes, frequently bought a larger one in a different state, sometimes even sight-unseen.
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