The combination of historically low inventory, persistently high home prices and rapidly escalating interest rates drove some interesting changes in homebuyer characteristics this year. Year-over-year changes from last year reached many all-time highs.
Median distance of moves more than tripled in 2022, up from 15 to 50 miles, the highest distance ever recorded
I remember in the early 2000s that buyers were looking further and further out from the core cities to get more space for less money. That trend is returning, but without the need for the long commute it meant 20 years ago. Remote work is allowing buyers the freedom to move farther away without the repercussions of crushing gas prices and commute times. The map above shows one hour commute times… a big change from the trend of searching 15-20 minutes from work before the pandemic.
Share of first-time homebuyers hit an all-time low at 26%
This drop of 8% from last year was largely caused by low inventory driving up prices because of the stiff competition… then rising interest rates drove affordability down, hitting first-time homebuyers the hardest
The typical homebuyer is older than ever before
Age of typical first-time homebuyer is up from 33 in 2021 to 36 in 2022. Age of typical repeat buyer is 59… up from 56 in 2021. Both are all-time highs.
Share of unmarried couples buying a home reached an all-time high
10% of all buyers were unmarried couples buying a home together… even higher at 18% for first-time buyers.
Percent of homebuyers purchasing a multigenerational home increased 3% over last year
14% of homebuyers purchased a multigenerational home in 2022… reasons include: taking care of aging parents, children over 18 moving back home, cost savings
Sharlene Hensrud, RE/MAX Results – shensrud@homesmsp.com
