Home Buyers are Getting Older, Why?

Lawrence Yun, chief economist for the National Association of Realtors (NAR), said in a March 2020 article in the Realtor magazine, that the average age for home buyers in the U.S. in 2019 was about 47 compared to about 31 in 1981. The average age of first time buyers has held a lot more steady and was about 33 in 2019. The average age of repeat buyers increased significantly from the mid 30's in 1981 to about 55 in 2019.

Utah is not specifically mentioned in the article, but considering the average age in Utah is 31 compared to 38 nationally, deducting 7 years from the numbers referenced in the article should give a rough idea of how we compare. That would indicate the average age for a first time buyer in Utah to be about 26, for all buyers to be about 40 and for repeat buyers to be about 48.

These statistics raise the question, why the drastic increase in the average age of home buyers? Lawrence Yun believes it is due to people staying in their homes longer. The annual mobility rate is bout 10% currently, compared to 20% in the 1950's. Mr Yun says one reason people are staying longer in their homes is due to the increased number of two-earner households, which adds to the complications related to relocating. Another reason, in my opinion, is the shortage of listings. With so few listings to choose from and the high demand for the available listings, it is just easier to stay put.

- Jeff Jorgensen