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According to an annual survey conducted by the National Association of Realtors (NAR), the market share for first-time home buyers is at a historic low.

The 2024 Profile of Buyers and Sellers found that the share of first-time buyers in 2024 was 24%, down from 32% in 2023. The 24% mark was the lowest since NAR started recording data in 1981. Prior to 2024, 2022 was the next lowest at 26%. It was in 2010 that NAR saw the highest share of first-time home buyers at 50%, before dropping off to 37% in 2011. That marked the most significant year-by-year decrease in the 40-plus years NAR has conducted the survey.

Jessica Lautz, NAR deputy chief economist and vice president of research, believes that the increase in price is a key factor in the falling number of first-time home buyers and rise of buyers’ ages at purchase.

“First-time buyers face high home prices, high mortgage interest rates and limited inventory, making them a decade older with significantly higher incomes than previous generations of buyers,” Lautz said in a news release. “Meanwhile, current homeowners can more easily make housing trades using built-up housing equity for cash purchases or large down payments on dream homes.”

J.P. Shamshoian, the CEO of Reality Concepts, believes that the reason for the decrease stems from education.

“We’re reliant on good jobs and good jobs are reliant on an educated and skilled workforce,” Shamshoian said. “We need to continue to invest in our public education system — both on the K-12 and secondary levels. The better workers we have, the more young people will be able to afford homes.” 

From 1981 to 2018, the median age for first-time home buyers ranged from 29 to 32. However, over the last six years, the median has increased every year except 2023. The median age now sits at 38, the highest mark for first-time home buyers.

Unlike first-time buyers, the median age for repeat buyers and all buyers has continuously trended upwards.

In 1981, the median age for all home buyers was 31. Forty-plus years later, the median age has increased to 56. For repeat buyers, the median age started at 36 and has now climbed to 61.

This is the second time in three years (2022) that the median age across all three demographic groups has been at a record high.