11/25/2024
INSIGHTS FROM NARS 2024 PROFILE OF HOME BUYERS
The National Association of REALTORS®’ annual Profile of Home Buyers and Sellers offers a unique glimpse into the behavior, motivations, and experiences of recent home buyers and sellers. Covering transactions from July 2023 to June 2024, this year’s report highlights how buyers and sellers are navigating a shifting housing market. This article marks part one of a two-part series exploring key findings from the 2024 profile.
In the past year, home buyers faced a market shaped by high demand, elevated home prices, and interest rates that averaged 7.02 percent. While these conditions presented hurdles, they also underscored the resilience and adaptability of today’s buyers. First-time home buyers represented 24 percent of all purchasers, marking an adjustment in market share as these buyers work diligently to achieve their homeownership goals. The median household income for first-time buyers rose to $97,000, reflecting a commitment to building financial strength amid changing market conditions.
Age and experience emerged as defining characteristics of today’s home buyers. The median age of all buyers increased to 56, with first-time buyers reaching an average age of 38 and repeat buyers averaging 61 years. This evolution speaks to a diverse range of needs and motivations, with buyers leveraging their life experiences to make informed choices. Repeat buyers, for instance, often benefit from substantial home equity, enabling larger down payments—typically 23 percent—or cash purchases, empowering them to maximize their market opportunities. First-time buyers, meanwhile, continue to contribute meaningfully with a median down payment of nine percent, the highest since 1997, demonstrating their ability to compete and thrive in a dynamic environment.
The 2024 profile illustrates the diverse makeup of home buyers. Among all buyers, 83 percent identified as White/Caucasian, while 36 percent of first-time buyers represented a range of non-white backgrounds. Multi-generational living reached an all-time high of 17 percent, driven by cost savings, elder care, and support for young adults. This trend underscores a spirit of collaboration and adaptability among today’s households.
In terms of priorities, buyers ranked neighborhood quality and proximity to family and friends as top considerations. Flexibility and evolving work patterns may have contributed to a slight decline in the importance of job location, showing a shift toward lifestyle-centric decisions.
Despite market complexities, home buyers expressed strong satisfaction with their experiences—92 percent were pleased with the buying process. Realtors played a vital role, guiding 88 percent of buyers through every step, from finding the right home to negotiating favorable terms.
