A Portrait of a First-Time Homebuyer in 2024

The average first-time homebuyer looks different than they used to. In many ways, there are more financial barriers to entry than in decades past. For instance, there’s been over a 35 percent increase in national housing prices since 2020. Unfortunately, wages have only increased 17 percent since 2020, and inflation has skyrocketed roughly 18 percent since in the same time frame—wiping out the benefits of those wage increases.

To help you position yourself for success in the housing market, studying current homebuyers is helpful. And, to help you do that, Maleno is painting a portrait of the average first-time homebuyer in 2024.

What is a First-Time Homebuyer?

Generally speaking, a first-time homebuyer is a person who is entering the housing market for the first time and hasn’t owned a home yet. However, you may also qualify as a first-time home buyer if you haven’t owned a home in the last three years.

The distinction of a first-time homebuyer is important as it allows you to take advantage of first-time homebuyer loans and programs such as Federal Housing Administration (FHA) and Housing and Urban Development (HUD) loans. To help you avoid the added cost of private mortgage insurance (PMI), many of these first-time homebuyer options also offer payment assistance programs that minimize the down payment amount, which is traditionally 20 percent down on a conventional mortgage.

How Old is The Average First-Time Homebuyer?

The good news is that the average age of a first-time homebuyer decreased between 2023 and 2024. The bad news is that this decrease is only one year from the oldest first-time homebuyers in history. More specifically, in 2024, the median first-time homebuyer was 35 years old, down from age 36 the year before, which was an all-time high for first-time homebuyers.

It's also worth noting a significant gender disparity. The median age for first-time homebuyers identifying as single women was 38, and for single men, 33.

All that said, there is some more good news. The percentage of first-time homebuyers from diverse racial and ethnic groups is increasing. In 2024, 55% of all Asian/Pacific Islander homebuyers were first-time buyers, versus 43% in 2023. In addition, 51% of Black/African American and 51% of Hispanic/Latino homebuyers were first-timers in 2024 versus 49% and 32%, respectively.

Are Most First-Time Homebuyers Married or Single?

The number of single people buying their first home is increasing. In 2024, 18 percent of first-time homebuyers were unmarried, which equates to an approximate 4 percent increase each decade over the last 40 years. This data makes sense as the average age at which people get married has increased rapidly since the 1980s.

Interestingly, the percentage of single men purchasing homes has changed little since the 1980s. Conversely, the rate of single women who are first-time buyers has risen from 11% to 19% over the same period.

How Much Do First-Time Homebuyers Earn?

According to the National Association of Realtors, the median household income for first-time homebuyers increased from $88,000 to $107,000 between 2022 and 2023, reflecting diminishing housing affordability and high mortgage rates.

What’s particularly challenging for today’s first-timers is that a good portion of their competition is paying cash instead of using financing. From 2021 to 2023, the percentage of homebuyers paying cash increased from 13 percent to 20 percent—nearly double. However, this cash isn’t strictly from employment. Twenty-three percent of first-time buyers used a gift or loan from friends or family for down payments.

Do Most First-Time Homebuyers Have Children?

Whether it’s due to declining fertility rates, the increased cost of raising children, or the wage penalty many mothers face, there are a lot fewer people having children in the United States, and this pattern can be noted clearly in real estate statistics. In fact, 70% of recent buyers did not have a child under the age of 18 in their home—the highest share ever recorded. To put this in perspective, 42% of households did not have a child under the age of 18 in 1985.

What Can You Do To Prepare for Buying a Home?

There are some challenges to buying in a hot market, but it’s far from impossible. To increase your chances of purchasing your first home, we recommend following a few best practices:

1. Know Your Budget

To avoid buyer’s remorse, know your budget upfront and don’t budge on it. Remember, the sale price is only one of the expenses of buying and owning a home. During the home-buying process, save a little extra for expenses such as closing costs, home appraisals, inspections, and loan origination fees.

Best Practice: Mortgage payment should be no more than 28 percent of your gross income.

2. Create a Wishlist

Houses are still selling unbelievably fast. But do your best not to get caught up in the frenzy. Back in 2023, 30 percent of homebuyers felt they purchased too quickly.

We recommend creating a house-hunting wish list that includes your must-haves, would-be-nices, and deal-breakers to avoid an impulse purchase. This list will help you and your agent narrow down the right house for you.

Best Practice: Look at least six homes that meet your criteria before making a decision.

3. Get Your Finances in Place

Start getting your finances in order now. If you’re going to get a mortgage, speed up the process by having the following documents ready for your lender:

If you’re buying with cash, ensure you can show proof of funds (POF). In some cases, it’s as simple as providing a printed bank statement. Other times, you may need a letter from your bank or financial institution stating the exact amount of accessible or liquid funds.

Best Practice: Get pre-approved for a mortgage, not just pre-qualified, 30 to 60 days before house hunting.

4. Leverage First-Time Homebuyer Programs & Loans

First-time home buyers can access loans, programs, and grants that offer better interest rates, lower down payment requirements, and closing-cost assistance. If you’re a first-time homebuyer in Pennsylvania, we recommend looking into the following:

• PHFA Home Programs
• USDA Rural Development Loans
• First-time homebuyer grants and programs
• FHA Loans
• USDA Loans

Best Practice: Ask your lender for information about new programs and grants, such as tax credits, reimbursements, or grant dollars, specifically for first-time homebuyers.

5. Work with an Experienced Agent

If you're new to real estate, partnering with a knowledgeable agent is crucial. A seasoned real estate professional will guide you through the home buying process, from understanding neighborhood trends to identifying potential property concerns. When it comes to the buying price, they’re there to negotiate on your behalf.

In today’s competitive market, too many first-time homebuyers make costly mistakes—waiving inspections, skipping contingencies, or paying more than necessary. While real estate agents can’t provide legal advice, they can offer invaluable insight and honest feedback.

Working with Maleno

Navigating the current real estate market can be challenging, especially for first-time homebuyers. But rest assured, great opportunities are still out there. At Maleno, we’re here to help you find your first home and align it with your financial well-being. Our seasoned principal broker and realtors are committed to providing expert advice and personalized guidance every step of the way. When you’re ready to get into the market, contact Maleno today to get started on your home-buying journey.