The median household income of U.S. home buyers who purchased single-family primary residences jumped to $107,000 in June, according to the National Association of Realtors’ 2023 Profile of Home Buyers and Sellers.
That’s up from $88,000 last year, underscoring the increasing income required to purchase a home.
The report tracks transactions between July 2022 and June 2023.
“Given the erosion of housing affordability due to higher home prices and mortgage rates, the household income for those who successfully purchased homes jumped by nearly $20,000 and topped six figures for only the second time in our records,” says Jessica Lautz, deputy chief economist and vice president of research for NAR, in a statement. “In a still-competitive housing market, more well-off home buyers were able to have their bids accepted by offering larger down payments and even by paying cash.”
First-time buyers made up 32% of all home buyers, up from last year’s historic low of 26%, according to the report.
While this is an increase, it is well below the 38% annual average since 1981.
“First-time buyers tiptoed back into the market this year with less competition and fewer multiple-offer scenarios,” says Lautz. “While the share of first-time buyers is still near historic lows, it is higher than last year. Notably, today’s first-time buyers had household incomes nearly $25,000 above last year and are more likely to use financial assets to enter the market.”