The Changing Face of the 2024 Real Estate Market
2024 Real Estate: Older, Wealthier Buyers and Sellers, and Challenges for Younger Buyers
The 2024 real estate market is undergoing a transformation, as new data reveals that homebuyers and sellers are skewing older and wealthier, while younger buyers struggle to enter the market. This shift reflects evolving societal, economic, and demographic trends—and it’s reshaping the way homes are bought and sold in America.
Aging Buyers and Sellers
The age of the average homebuyer has risen dramatically over the past few decades, reflecting a broader trend toward delayed homeownership. In 2024, the median age of first-time homebuyers is 38, compared to 35 just a year earlier. Meanwhile, the average age for household formation remains much younger, at 26, highlighting the long gap between leaving the nest and purchasing a first home.
For home sellers, the trend is similar. The median age for sellers rose from 49 in 2023 to 56 in 2024, with the average age reaching 63. In fact, 77% of sellers reported having no children under 18 at home, emphasizing the growing dominance of empty nesters in the housing market.
The Wealth Divide in Homeownership
The financial barriers to homeownership have never been higher. In the 2024 real estate market, the share of first-time homebuyers dropped to an all-time low of 24%, down from 32% in 2023. This decline can be attributed to several factors, including rising home prices, high mortgage rates, and stagnant wage growth for younger generations.
Additionally, cash sales made up 26% of all transactions, underscoring the advantage that wealthier buyers have in a competitive market. Multigenerational homes accounted for 17% of purchases, reflecting families pooling resources to afford homes or accommodate aging relatives.
Fewer Transactions, Stiff Competition
While the housing market remains critically low in terms of sales volume—4.1 million homes sold in both 2023 and 2024—the market’s dynamics remain challenging. Today’s home sales match 1995 levels, even though the U.S. population has grown by 70 million people since then.
But there is good news for buyers, with inventory improving 30% from 2023. It is heading in the right direction as quarter-over-quarter shows inventory growth —5% in Q2, 10% in Q3, and 15% in Q4 of 2024 real estate market. Still, these gains have not been enough to alleviate the difficulties faced by younger buyers entering the market.
Fewer Homes Sold, Fewer Realtors
The competitive environment has also impacted real estate professionals. In 2024, 47% of Realtors sold no homes, leaving the industry with approximately 700,000 hungry, “transactionless” agents. Hard to imagine almost three quarters of a million agents still waiting on their first paycheck for the year.
Implications for the Future
The 2024 real estate market is showing increasingly dominated by older, wealthier participants, creating challenges for younger buyers trying to achieve the American Dream of homeownership. These trends underscore the need for creative solutions—from policy changes to financial innovations—to bridge the growing divide between generations.
For now, the question remains: how can we ensure that the next generation of buyers has the same opportunities to own homes as their predecessors?
Considering a move to or out of Northern Colorado? Reach out to The Weinland Team with RE/MAX Alliance. We’re here to help with all your real estate needs.
Written by Nathan Weinland, leader of the Weinland Team at RE/MAX Alliance
Phone: (970) 690-4088
Email: Sales@TheWeinlandTeam.com
Written by fortcollinsexperience
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