WASHINGTON (November 13, 2023) – Median household income for home buyers jumped from $88,000 last year to $107,000, highlighting the increased income needed to purchase a home, according to the National Association of Realtors®. did. 2023 Home Buyer and Seller Profiles1. This annual survey of recent home buyers and sellers (this year tracking transactions from July 2022 to June 2023) has been NAR's flagship report since it was first published in 1981. , provides industry experts with detailed insight into home buying and selling behavior.
“When you factor in the decline in housing affordability due to rising home prices and mortgage rates, household incomes for households that successfully purchase a home have jumped nearly $20,000, exceeding six digits,” NAR Deputy Director Jessica Lautz said in a statement. This is the second record.” Economist and Vice President of Research. “In a still competitive housing market, wealthier homebuyers were able to offer higher down payments and even pay cash to get their bids accepted.”
First-time buyers accounted for 32% of all homebuyers, up from a historic low of 26% last year. While this is an increase, it is well below the annual average of 38% since 1981. The typical ages of first-time buyers (35 years old) and repeat buyers (58 years old) have decreased slightly from their previous highs of 36 years old and 59 years old. , last year.
“First-time buyers have tiptoed back into the market this year with less competition and fewer multiple-offer scenarios,” Lautz explained. “While the proportion of first-time buyers remains near historic lows, it is higher than last year. In particular, first-time buyers today have household incomes nearly $25,000 higher than last year and are using their financial assets to enter the market. They are more likely to participate.”
Household composition also continues to change. 70% of recent buyers do not have children under 18 in their home, the highest percentage ever. By comparison, in 1985, 42% of households had no children under 18. 59% of recent buyers were married couples, the lowest percentage since 2010, while single women (19%) and single men (10%) were married couples. %) Increased number of buyers. 9% of buyers were unmarried couples. 14% of homebuyers purchased a multigenerational home, with the most common reasons being to care for elderly parents, to save money, and for children or relatives over 18 to move back into the home. It was for a reason.
By race, 81% of homebuyers were white/Caucasian, down from 88% last year, 7% were Hispanic/Latino, 7% were Black/African American, and 6% were white. Asian/Pacific Islander, 6% identified as other races. 10% of buyers were born outside the US, up from 8% last year. 6% of buyers speak a first language other than English, up from 5% last year.
“Homebuyers last year were more racially and ethnically diverse, with increases among minority buyers, buyers born outside the United States, and buyers whose primary language is not English. ,” Lautz said. “This is an encouraging sign that homeownership rates may contract in the future as more minority buyers enter the market.”
The median distance between the home that recent buyers bought and the home they moved from was 20 miles. This is down from last year's 50 miles and closer to the previous standard of 15 miles. Similarly, while suburbs have boomeranged back (from 39% in the 2022 report to 47% in the 2023 report), they remain below the norms seen from 2017 to 2021, when their share was more than half of buyers. be. At the same time, small towns and rural areas remain more popular than during the same period.
80% of buyers put money towards their home purchase, up slightly from 78% last year, but still down from 87% two years ago. The typical down payment for a first-time buyer is 8%, which is the highest since his 9% in 1997. The typical down payment for repeat buyers is 19%, the highest since 2005 when he had 21%. To secure a down payment, first-time buyers are relying more on financial assets this year, selling stocks and bonds (11%), selling 401k's or pensions (9%), IRAs (2%), and selling cryptocurrencies. (2%).
89% of recent buyers purchased their home through a real estate agent or broker. This is up from his 86% last year. 90% of buyers say they would use their agent again or recommend them to others. 89% of home sellers worked with a real estate agent to sell their home. This is up from 86% the previous year.
“With limited inventory in the housing market and fluctuating home prices, buyers and sellers have increased their use of real estate agents,” Lautz said. “Buyers were looking for professionals to help them find and negotiate the right home.Sellers were also looking for real estate agents and professionals to help them price their homes competitively and market them to potential buyers. We were dependent on intermediaries.”
The typical home seller is 60 years old, unchanged from last year's report. Sellers typically have lived in their home for 10 years before selling.
Tracy Kasper, president of NAR, a Realtor® in Nampa, Idaho, says, “Having a Realtor® help you through the home buying and selling process is a great way to help your family buy and sell a home, especially when prices are high, mortgage rates are high, and inventory is limited. It gives us peace of mind in the market.” He is also the broker-owner of Berkshire Hathaway HomeServices Silverhawk Realty. “Buyers and sellers can trust the expertise of Realtors® to help them make one of the biggest and most important purchases of their lives.”
methodology
The data collected in this report is primarily based on resident homebuyers. In July 2023, NAR mailed a 129-question survey to 189,750 recent homebuyers using a random sample weighted to represent geographic-based sales. The buyer must have purchased a primary residential residence from July 2022 to June 2023. NAR received 6,817 responses from primary residential buyers. After accounting for questionnaires that could not be submitted, the adjusted response rate for this study was 3.6%. The sample confidence interval at the 95% confidence level is plus or minus 1.19%.
About the National Association of Realtors®
The National Association of Realtors® is the nation's largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term Realtor® is a registered association membership mark that identifies real estate professionals who are members of the National Association of Realtors® and adhere to its strict code of ethics.
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1 The 2023 edition of NAR's Home Buyer and Seller Profile continues the longest series of national housing data assessing the demographics, preferences and experiences of recent buyers and sellers. Results are representative of owners and residents and do not include investors or second homes.
