Who are today's homebuyers?
There has been a slight shift in the profile of US homebuyers in the last year. The story of how 2023 is trending so far, is an interesting one.
In 2022, the average age of a homebuyer was 36. Older millennials (32-41 years of age) made up 25% of US homebuyers; this was the highest percentage of any age group of buyers.
In 2023, the average age of a homebuyer is 49. GenXers (42-56 years of age) now make up 24% of US homebuyers; this is currently the highest percentage of any age group of buyers.
Right now, 67% (two-thirds) of homebuyers are over 42 years of age, and 39% are over 57 years of age.
Per Jessica Lautz, Deputy Economist at National Association of Realtors (NAR):
“Baby boomers (57-79 years of age) have the upper hand in the homebuying market. The majority of them are repeat buyers who have housing equity to propel them into their dream home – be it a place for retirement or a home near friends and family. They are living healthier and longer and making housing trades later in life.”
Those with equity in their homes are less sensitive to interest rate volatility, as they do not need to borrow/finance as much.
Photo by krakenimages on Unsplash
