Percentage of First-Time Buyers Falls
By Leighton, Kelly | Nov. 17, 2022 | 2 min. read
The number of first-time homebuyers between July 2021 and June 2022 fell 8%, with first-time buyers representing just 24% of all homebuyers.
According to NAR’s 2022 Profile of Homebuyers and Sellers, the average age of the first-time homebuyer rose, from 33 years old to 36 years old, an all-time high. The average age of all buyers was 53, up from 45 year over year. The average age for repeat buyers was 59, another increase. This is the oldest for each category since 1981, when the average age for all buyers was just 31. The biggest share of buyers in the past year were aged 55 to 74, representing 42% of all buyers. Sixty-one percent of buyers were married couples, 17% were single females, 10% were unmarried couples and 9% were single men. The majority of recent homebuyers (69%) have no children under 18 in the household, while 12% have one, 8% have two and 10% have three or more.
Of all recent homebuyers, 88% were Caucasian, 8% were Hispanic, 3% were Black and 2% were Asian/Pacific Islander. The median income of all buyers was $88,000, with first-time buyers making $71,000 and repeat buyers making $96,000. Twenty-two percent of buyers said the top reason they bought was because they wanted to own their own home, 13% wanted to be close to friends and family and 8% each said they wanted a smaller home or they moved for a job. First-time buyers were more likely to say the bought because they wanted to own a home, while repeat buyers were more likely to buy to be closer to friends or family or due to retirement.
Consumers are still relying on real estate professionals. Eighty-six percent said they used an agent, with nearly half reporting they wanted their agent mainly to help them find the right home. Close to 40% of buyers who used an agent relied on a referral to find theirs, 12% used an agent they had used previously and 10% found theirs online when looking at properties. More than two-thirds only interviewed one agent, but 89% said they would recommend their agent to family and friends.
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