Average Age Of Home Buyers In California
Every year, the California Association of Realtors conducts a survey with the goal of providing demographic information of home buyers and sellers to Realtors, thereby allowing Realtors to efficiently identify their target market, i.e. home buyers and sellers. As part of that study, the CAR provides information concerning the age of home buyers, including the average age of home buyers. While this information may not be particularly useful to other home buyers, this blogger finds the information to be interesting, and so this post was born.
Data Concerning The Average Age Of Home Buyers
Not surprisingly, the information reveals that as the price of homes increases, so does the average age of home buyers, and vice versa. As shown by the chart below, the average age of home buyers was consistently between 40 and 45 until the recession hit, driving the average age of home buyers down to 35 in 2012. Subsequent increases in prices then drove the average age of home buyers up to a surprising 48 in 2014.
Distribution Of The Age Of Home Buyers
The distribution of the age of home buyers sheds further light on the recent spike in the average age of home buyers. In recent prior years, the overwhelming majority of home buyers were aged between 25 and 44. The year 2014, however, saw an influx of buyers aged 55-64 and 65+. In fact, whereas the percentage of buyers aged 65+ was negligible in prior years, those buyers made up approximately 5% of the market in the most recent study. The chart below provides a visual breakout of the distribution of the age of home buyers each year since 2010.
The Future Of The Average Age Of Home Buyers
So what does this all mean? The spike in the average age of home buyers in 2014 was likely an anomaly insofar as no similar spike has occurred since 2002. However, the continuing increase in home prices will likely see the average age of home buyers push up to the 40-45 range again, particularly if there is an accompanying increase in interest rates. This will likely cause an accompanying shift in the marketing techniques of real estate agents – agents will begin to advertise more heavily to the 40+ crowd. How is this relevant to the average home buyer, you ask? It’s not – but it will always be interesting.
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