The National Association of REALTORS® produces a yearly Profile of Home Buyers and Sellers report since 1981. The report provides an overview of who purchased and sold a home in the last year. While the report is 141 pages long, and everyone will find a favorite statistic, these are the 2024 findings I found most interesting.

1. First-time Home Buyers

First-time home buyers dropped to the lowest historical share since data collection began in 1981. First-time buyers faced limited inventory, continued erosion of housing affordability, and difficulty saving for a down payment. The most difficult step, even among successful first-time buyers, was just finding the right property. This year’s successful first-time buyers cited high rent, student debt, credit card debt, and car loans as debt that held them back from saving.

2. All-cash Home Purchases

All-cash home buyers reached an all-time high this year at 26%. It is important to note that the data collected is only from primary residence buyers—not vacation home buyers or investors. For repeat buyers, they have earned housing equity in the home and can make the next purchase, perhaps in retirement, without financing. For first-time buyers, the answer of “how” may lay in their down payment sources—7% used inheritance (which is an all-time high) and 21% used financial assets. Perhaps using a combination of savings, inheritance, and cashing out stocks allowed these first-time buyers to purchase without a mortgage.

3. Share of Buyers With a Child Under 18

Another notable demographic change is the share of buyers who have children under 18 in the home. The share dropped to a historic low of 27% of buyers from a high of 58% in 1985. This shift is likely due to a higher share of repeat buyers who are older (61 as a median age this year), an overall drop in birth rates, and people having children later in life. For first-time buyers, 36% had children under 18, and for repeat buyers, 24% had children under 18. This change means a difference in neighborhood amenities and could change how often a buyer moves (e.g., if they would move with a growing family or as an empty nester).

4. Purchase of Multigenerational Homes

Multigenerational housing has reached an all-time high of 17% of home buyers. This could house an elderly relative or adult children over the age of 18 or families of other compositions for cost savings and to buy a larger home. As housing affordability is increasingly difficult, pooling incomes to purchase a larger home and split household expenses assists home buyers in achieving homeownership. This may also be a way for families to approach caregiving for young children with an extra set of hands or elder care for relatives.

5. Location of Home Purchased

Moving to city centers is at the highest level in a decade, at 16%. While home buyers are still most likely to purchase homes in the suburbs (45%) and small towns (23%), there is an attraction to the dynamic nature of cities—and it may not always be for work. In fact, when home buyers note factors influencing their neighborhood choice, convenience to one’s job dropped to 34%, from 52% in 2014. The top factors are the quality of the neighborhood and convenience to friends/family.

Source: National Association of Realtors

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