I thought it would be interesting to compare the profile of the typical homebuyer in 2020 to the typical buyer in 2015. Each year the National Association of Realtors (NAR) puts together profile reports.
The typical home buyer in 2020:
- First-time buyers made up 31% of all home buyers, a dip from last year’s 33%.
- The typical buyer was 47 years old this year, and the median household income for 2019 rose again this year to $96,500.
- 12% of home buyers purchased a multi-generational home, to take care of aging parents, because of children over the age of 18 moving back home, and for cost-saving.
- 18% of recent home buyers were veterans and 2% were active-duty service members.
The typical home buyer in 2015:
- First-time buyers made up 32% of all home buyers, down from 33% last year.
- The typical buyer was 44 years old and had a median household income of $86,100.
- 13% of home buyers purchased a multi-generational home to take care of aging parents, for cost savings, and because children over the age of 18 are moving back home.
- 18% of recent home buyers are veterans and 3% are active-duty service members.
It looks like home buyers have gotten a little older and earn about $10,000 more a year. The numbers haven’t changed all that much. The typical home buyers I have worked with and am working with this year are in their 30’s.
In the glossy ads, home buyers are a man and a woman with children. They are usually under 40. That seems to be the target group for home builders too but I think that kind of targeting violated fair housing rules.