Today’s average homebuyer has a six-digit household income, according to new data released by the National Association of Realtors (NAR).
In a survey of roughly 6,800 buyers involved in real estate transactions between July 2022 and June 2023, NAR determined the current median household income for homebuyers is $107,000, up from $88,000 one year ago. This median income is a record high in NAR’s data tracking, which began in 1981.
First-time buyers accounted for roughly one-third (32%) of all potential purchasers, up from last year’s historic low of 26% but below the 38% annual average since 1981.
The typical ages for first-time and repeat buyers was 35 years and 58 years, respectively – last year, the ages were 36 years and 59 years, respectively, which was a record high.
“Given the erosion of housing affordability due to higher home prices and mortgage rates, the household income for those who successfully purchased homes jumped by nearly $20,000 and topped six figures for only the second time in our records,” said Jessica Lautz, NAR deputy chief economist and vice president of research. “In a still-competitive housing market, more well-off homebuyers were able to have their bids accepted by offering larger down payments and even by paying cash. First-time buyers tiptoed back into the market this year with less competition and fewer multiple-offer scenarios,” explained Lautz. “While the share of first-time buyers is still near historic lows, it is higher than last year. Notably, today’s first-time buyers had household incomes nearly $25,000 above last year and are more likely to use financial assets to enter the market.”
As for the buyers’ households, 70% of recent buyers did not have a child under the age of 18 and 59% were married couples, the lowest percentage since 2010 but still significantly higher than buyers who were single females (19%), single males (10%) and unmarried couples (9%). Fourteen percent of home buyers purchased a multi-generational home, with the most common reasons being to take care of aging parents, to save money and to accommodate children or relatives over the age of 18 moving back home.
Among racial and ethnic demographics, the overwhelming number of buyers were White (81%), compared to 7% who were Hispanic, 7% who were Black, 6% who were Asian and 6% who identified as another race. Ten percent of buyers were born outside the U.S. and 6% spoke a primary language other than English.
NAR also noted that 89% of recent buyers purchased their home through a real estate agent or broker, up from 86% one year earlier, while 89% of sellers worked with an agent to sell their property. The typical home seller was 60 years old and lived in their homes for 10 years before selling.