Our 2023 First-Time Home Buyer Stats (Want to Buy a House in 2024? Read This!)
At Open House Austin, we help people buy houses every day - especially first-time buyers who might find the process intimidating. We’ve each been in your shoes! And that’s why we’re so focused on education and creative home-buying strategy. With that in mind…
In 2023, 63% of our clients who bought a home were doing so for the first time.
We’re so, so proud of them! Especially considering the ever-changing real estate market. Our agile Realtor team played a huge part in this, pushing for significant seller credits ($$$) and repairs. 🙂
Keep in mind, the following info comes from our team in Austin. If you're looking to buy outside of our area, we can connect you with a Realtor who shares our commitment to education and support, no matter where you are. Now, let's get into the numbers!
OUR CLIENT DEMOGRAPHIC
AGE RANGE
83% of our first-time buyers were between the ages of 20-35.
Co-Founders Kristina and Steph saw firsthand the benefits of early real estate investments, which is why empowering young people has always been a core part of our company's mission. This oftentimes requires getting creative by house hacking or teaming up with friends.
In fact, that’s why we’ve spent January and February of 2024 super focused on developing accessible (and free!) education on real estate partnering. Check out our “Buying Homes With Friends Part 1: What Makes a Great Partnership?” blog post to learn more!
SINGLE, COUPLE, OR REAL ESTATE PARTNER?
Observing the trends from 2021 to 2023 reveals a fascinating evolution in the buying habits of our first-time homebuyers.
Initially, in 2021, the divide was nearly equal, with 50% purchasing as couples and 45% as single buyers.
The scenario shifted slightly in 2022, where singles took the lead at 52%, couples made up 41%, and real estate partners accounted for 7%.
However, 2023 marked a significant change. The proportion of single buyers dropped to 37%, while couples purchasing together rose to 47%. Notably, the percentage of buyers teaming up with real estate partners increased to 16%.
This trend underscores a growing inclination towards joint ventures in real estate, perhaps as a strategic response to the challenges posed by the current financial environment, including 6-8% interest rates and stable Austin home prices.
It's evident that collaboration and partnership are becoming key strategies for those looking to enter the housing market. In mid-January, we had the chance to speak with Architectural Digest about this trend! Read: “Should You Buy a Home With Friends?”
HOUSE VS. CONDO
In 2023, 88% of our clients opted for single-family homes, while 12% chose condos, each carefully considering their unique financial circumstances alongside their lifestyle preferences and needs.
For some, a condo aligns perfectly with their lifestyle and needs. If you’re on the fence, schedule some time with us to talk through it.
HOME PRICE
The rising trend of our first-time buyers getting homes for less than $399K, from 34% in 2022 to 42% in 2023, stands out in Austin's housing market.
As of December 2023, the median list price in Austin hit $630K, with the median sale price at $478.4K, per Realtor.com. This gap between the overall market and our buyers' achievements points to a few important ideas…
First off, our success highlights how well our educational strategy works. We teach our clients to think like investors, helping them find good deals or negotiate better prices, even when the market's average prices are higher.
Curious about this approach? You can learn all about this by taking Homeschool on YouTube, our free first-time home buyer course.
Additionally, more of our buyers finding affordable homes could signal a change in the market, with more reasonable options emerging or sellers being more willing to talk terms. Our team's skill in navigating these chances, possibly in a cooling market, might be why more clients are landing homes at these lower prices.
In short, our buyers' ability to find homes below the median price in Austin reflects our effective teaching, strategic buying, and the evolving market, making homeownership more reachable for first-timers.
DOWN PAYMENT & CLOSING COSTS
What about down payment and closing costs? Our clients pay around 1.5-1.75% of total home cost in closing costs - this number doesn’t change.
As the buyer, your down payment amount will be based on whatever you’re comfortable with! Know this: You do not need to put 20% down to buy a house. This only removes PMI - which may or may not be of value to you. Your lender can talk you through this.
Here are the down payment amounts that our first-time home buyers went with:
An impressive 57% of our clients managed to make a down payment of 5% or less on their first homes! According to the National Association of Realtors in 2023, the typical down payment for first-time buyers, who are around 35 years old on average, was 8%.
We're excited to be well under the national average, as it indicates that our clients are able to invest their money into personalizing their new homes or for further investments in real estate. 🤩
ON TO 2024!
These stats should leave you optimistic about what's possible in the next year! There are a lot of myths out there about the housing market. Though buying a home has its challenges, getting your first home is very doable. The numbers we've shared show that clearly.
Here’s a list of next steps you can take as soon as today to drive your home-buying journey forward:
Sign up for our email newsletter for timely real estate market updates, house hacking tips, and event updates
Book a get-to-know-ya + strategy call with our Realtor team in Austin, Texas
Take our First-Time Home Buyer Mini-Course
Follow and listen to The Open House Podcast: Where Women Talk Real Estate
We’re on a mission to help first-time buyers, just like you, break through the barriers of traditional homeownership. You tell us! How can we be a better resource for you? Share your feedback with us: team@openhouseaustin.co.
