The share of first-time homebuyers in the U.S. housing market has fallen to its lowest level on record, underscoring the growing financial barriers to homeownership.
According to a report released by the National Association of Realtors (NAR), first-time buyers accounted for just 21% of all home purchases between July 2023 and June 2024. That is the lowest share since NAR began tracking data in 1981. By contrast, the median age of first-time buyers reached 40, the highest ever recorded.
Jessica Lautz, NAR’s deputy chief economist, said the proportion of first-time buyers is now “about half of what it was in 2007,” pointing to a severe shortage of affordable listings as the main cause.
The report found that the average down payment for first-time buyers rose to 10%, the highest since 1989. Most used personal savings (59%) to fund it, followed by financial assets such as 401(k)s, stocks, or cryptocurrency (26%), and gifts or loans from family and friends (22%).
By comparison, repeat buyers had a median age of 62 and a typical down payment of 23%, more than double that of first-time buyers. About 30% of repeat buyers purchased homes entirely in cash, underscoring the widening wealth gap between established homeowners and those trying to enter the market.
Overall, the median age of all homebuyers was 59, while the average seller owned their home for 11 years, the longest period on record. The average distance sellers moved was 30 miles, about five miles less than the previous year. Nearly half of sellers upgraded to newer homes, and 34% moved to larger properties.
NAR noted that the divide between homeowners and aspiring buyers continues to deepen as long-term owners accumulate equity while younger adults struggle with affordability.
Shannon McGahn, NAR’s chief advocacy officer, said homeownership remains “the cornerstone of the American Dream,” warning that buying a first home at 40 instead of 30 could mean losing more than $150,000 in potential wealth over time.
The report also found that only 24% of recent homebuyers had children under 18 living with them—the lowest share ever—while 14% purchased multi-generational homes, down from 17% last year. Among those who did, 41% cited caring for elderly parents, 29% aimed to reduce living expenses, and 27% said adult children had returned home.
A separate survey by online financial platform Raisin revealed that buyers take an average of six years to save for a down payment. About 41% of respondents said they could not afford to save enough at all, reflecting the ongoing housing affordability crisis.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
