Demographics
Millennials are the largest group of home buyers in 2024. Younger millennials (ages 25–33) and older millennials (ages 34–43) together account for 38% of all home buyers. Interestingly, younger millennials are the most educated group, with 80% having at least a bachelor’s degree.
Homeownership Rate
The homeownership rate in the U.S. was 65.6% in the second quarter of 2024. This reflects the proportion of households owning their homes out of all households in the nation.
First-time Home Buyers
First-time home buyers have increased, making up 32% of home buyers in 2023, compared to 26% in 2022. This indicates a growing interest and accessibility for new entrants in the housing market.
Interest Rates
The prevailing interest rates also play a significant role in home buying trends, affecting mortgage affordability and the overall attractiveness of purchasing real estate. Studies show 51% of potential home buyers are waiting for interest rates to drop before buying, and 59% are waiting for home prices to decline.
Factors Influencing Home Buying
Several factors influence home buying decisions. Approximately 60% of home buyers say the quality of the neighborhood is the most important factor in determining a location. Other key considerations include convenience to friends and family, and affordability.
Competitive strategies
We also found that 62% of potential home buyers are concerned about finding a suitable home due to a lack of available inventory. Because of this, buyers and sellers are adopting more competitive strategies. Sellers are leaning into the FSBO approach, listing their homes without a realtor. We are seeing buyers who place offers with an escalation clause, often ending up higher than the asking price.
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