real estate

Who are this season's typical homebuyers?

Real Estate » Who Are This Season's Typical Homebuyers?

High earners and two-income couples
High earners and two-income couples © wavebreakmedia/

No big surprise here: Today's buyers have incomes that are well above average.

Fifty-four percent of homebuyers have a household income of $75,000 or more, according to a 2012 survey by the National Association of Realtors. That's almost one-and-a-half times the national median of $52,762, according to the most recent U.S. Census numbers.

"Income is one of the dividing lines, when you look at the data," Palim says.

Figures can differ from market to market. But in South Florida, an income of "$75,000 is a good criteria," says Carl Noriega, president of the Florida Association of Mortgage Professionals.

That usually means "two-income families," he says.

In fact, 73 percent of buyers are couples, according to the Realtors' survey. But if you think high incomes equal bigger down payments, you're using the wrong math. Buyers who use a mortgage (about 81 percent of the market) have a median down payment of 9 percent, according to the Realtors' survey.

And first-time buyers are averaging between 3.5 percent to 10 percent down, says Frank Nothaft, vice president and chief economist for Freddie Mac.


Show Bankrate's community sharing policy
          Connect with us

Timely market news and advice for consumers ready to buy, sell or invest in real estate. Delivered weekly.


Jean Chatzky

Jean Chatzky: Buy a home now?

Whether you're talking interest rates, PMI or new down payment requirements, 2015 may be the last best year to buy. Here’s how to do it right.  ... Read more

Partner Center

Connect with us