Homebuyers in the U.S. are older than they ever have been, and younger buyers are increasingly being crowded out of the market.
The median U.S. homebuyer is now 56, up seven years from 49 last year, according to a Monday survey from the National Association of Realtors. In the 2010’s, the typical homebuyer was in their low to mid-40s. These older buyers are also slightly wealthier, with a median household income of $108,800, up from 107,000 in 2022.
First-time buyers, who in the 1980’s were still in their late 20’s, are now around 38 years old, up from 35 last year. And older first-time buyers who can afford homes also had a higher median household income of $97,000, compared to $95,900 a year ago, according to the survey.
The median age for repeat buyers also jumped to 61, up from 58 last year. Their income also increased, coming in at $114,300, compared to $111,700 a year ago.
The ages of the median typical homebuyer, the median first-time buyer, and the median repeat buyer were all at all-time-highs.
The rising age of the American homebuyer comes as home prices and mortgage rates have skyrocketed since the pandemic. The median selling price for a home is now up 39% since 2020 at $435,000, according to the NAR, while the interest rate on a 30-year mortgage has skyrocketed to about 6% from under 3% in 2020.
The lack of development across the country has also kept prices high as the housing supply remains low. Even the once affordable Midwest and Sunbelt cities are increasingly out of reach for most Americans. Half of the ZIP codes in some of the biggest cities in these regions are at least four times as expensive as the median household income in the metro area, according to a study by The Hustle.
As younger buyers get increasingly priced out of the housing market, more are renting or living with their parents. Yet, those that were able to buy a first home pre-pandemic feel like they are stuck in their starter home because of interest-rate increases that have hit since then.
Vice President Kamala Harris has proposed a plan to boost construction of new homes across the country while also offering $25,000 in down payment assistance for first-time buyers. Meanwhile, former President Donald Trump has proposed opening up federal land for massive housing construction.
After the Federal Reserve cut rates in September by half a percentage point, mortgage rates plummeted. Yet, rates have since increased, in part because of fears that inflation could rebound if Trump is elected president.