Homebuyers in 2024: Older, Richer, and Rarer

In 2024, a new record was set: more Americans used inheritance money to help buy their first home. This comes from a survey by the National Association of Realtors. It shows that first-time homebuyers were older and wealthier than before. This is a sign of how tough it is for many people to buy a home these days. Prices are high, and mortgage rates haven't gone down. First-time buyers had a median income of $97, 000 and were 38 years old on average. That's much older than a generation ago, when first-time buyers were in their late 20s. Jessica Lautz, deputy chief economist at NAR, said that first-time buyers are not just teachers or first responders anymore. It's mostly people who can afford it.Only 24% of all homebuyers last year were first-timers. That's the lowest since 1981. One in four first-time buyers got help from family or friends. A record 7% used their inheritance. Lautz thinks this might be because first-time buyers are older now and have their own money. The report also shows a big gap between people who own homes and those who want to buy. Repeat buyers are older and richer too. They can put down more money and sometimes even pay all cash. This makes it hard for first-time buyers to compete. Sellers have more power now. Homes that sold quickly usually got the full asking price. Some buyers even paid more than asked. All this has led some people to try new living situations, like multi-generational homes.