The National Association of REALTORS®’ 2024 Profile of Home Buyers and Sellers reveals some intriguing shifts in the real estate landscape. This annual report, a staple for industry insights since 1981, tracks who is buying and selling homes and how trends evolve. Here’s a breakdown of the top takeaways from the latest edition:

1. Historic Drop in First-time Home Buyers

First-time buyers make up the smallest share on record. Rising home prices, high rents, and mounting debt have created financial hurdles, making it especially tough for first-timers to save for a down payment and find affordable homes in today’s market.

2. Household Income on the Rise

Buyers who successfully entered the market in the past year have reported record-high household incomes. With mortgage rates approaching 8%, only those with substantial financial resources could navigate the high cost of homeownership.

3. Older Home Buyers

The average age of buyers has increased across the board, reflecting the need for more years to save up and the impact of low inventory. First-time buyers are now older, and repeat buyers are more likely to be near or in retirement, potentially influenced by the “lock-in effect” of low-rate mortgages.

4. Fewer Buyers with Children Under 18

Only 27% of buyers now have children under 18, a historic low compared to 58% in 1985. This trend aligns with shifting demographics, as repeat buyers tend to be older, and people generally have fewer children and start families later. Fewer young families buying homes may influence neighborhood preferences and demand for family-friendly amenities.

5. Rise in Multigenerational Living

Multigenerational homes are at an all-time high, with 17% of buyers opting for homes that accommodate extended family. This approach can help with caregiving needs or simply reduce costs as families pool their resources to afford larger homes amid high prices.

6. Increasing Down Payments

Down payments are now at their highest levels in decades, both for first-time and repeat buyers. Homeowners building equity are in a strong position to contribute larger sums upfront, which can offset higher mortgage rates by lowering monthly payments.

7. All-cash Purchases Surge

Cash purchases have hit a record high at 26%, primarily among those buying primary residences. For repeat buyers, home equity has facilitated cash purchases, while some first-time buyers have used inheritances or investments to buy without a mortgage, a route that’s become increasingly common.

8. City Centers See Renewed Interest

City living is making a comeback, with 16% of buyers opting for urban areas—the highest level in a decade. While suburbs and small towns still dominate, city life offers an attractive lifestyle. Notably, convenience to work has declined as a deciding factor, while proximity to family and quality of life have become priorities.

9. Real Estate Agents are Essential to Buyers

A significant 88% of buyers engaged a real estate agent to navigate the market, find the right property, and negotiate on their behalf. This highlights the critical role agents play in helping buyers through what is often the biggest financial decision of their lives.

10. Agents are Vital for Sellers Too

Likewise, 90% of sellers worked with agents to price their homes accurately, attract qualified buyers, and secure a sale within a preferred timeframe. For-sale-by-owner (FSBO) sales have plummeted to just 6%, underscoring the value sellers see in having professional support.

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In an evolving market, these insights emphasize the importance of preparation and guidance for both buyers and sellers. If you're considering buying or selling a home, now is the time to partner with a knowledgeable local real estate expert who can help you navigate these trends and achieve your goals with confidence.