In a surprising reveal from a 2024 report by the National Association of Realtors, the median age of homebuyers has significantly increased over the years. This information, initially reported by Investopedia, has resurfaced and is making rounds on various social media platforms. As per the report, the median homebuyer in 2024 was born in 1968, making them 56 years old at the time. This figure is startlingly higher than in 2007, when the median homebuyer was just 39.
The report lays bare the unaffordable state of the housing market in the aftermath of the COVID-19 pandemic. The needed monthly payment to purchase a home of median value has astronomically increased due to soaring prices and heightened mortgage rates. In a comparison, the median monthly mortgage payment, inclusive of taxes and insurance, hit $3,030 in March, nearly double the $1,590 recorded in February 2020, according to the Federal Reserve Bank of Atlanta's home ownership affordability monitor.
This unaffordability continues to eliminate first-time homebuyers from the market, leaving only high earners or those with equity in their current house domain as dominant buyers. Moreover, there seems to be no relief in sight for potential first-time homeowners, especially with recent downgrades to the U.S. sovereign credit rating causing a spike in long-term interest rates. Housing market forecasts, including those by J.P Morgan, suggest that the market will likely remain stagnant with low sales and poor affordability for the remainder of the year.