How buyers have (and haven’t) changed in recent years 

The real estate market has experienced its share of ups and downs over the past few years, but when it comes to consumers, the average buyer — and what they want — hasn't changed as dramatically.

Zillow's 2024 Housing Trends Report found that the typical buyer is around 42, partnered or married, has some college education and is more likely to buy in the South.

That's similar to other Zillow reports from recent years.

But the study did note some movements in the share of first-time buyers, strategies buyers are using to lower their borrowing costs, and what home feature is now considered most essential.

Share of first-time buyers falls

In 2023, Zillow found that 50% of all buyers were purchasing a home for the first time, a significant increase over the survey low of 37% in 2021. But that upward trend reversed this year, with the share of first-time buyers falling to 44%. 

Despite the drop, that figure remains in line with the data reported between 2016-2019, when the share of first-timers fluctuated between 42% and 47%.

There was speculation that the high number of first-time buyers last year was due to a decrease in competition for homes at lower price points. That scenario didn't seem to materialize in 2024, however, as affordability remained challenging for most of the year, although it has shown some recent signs of improvement.

Down payments remain high, but many buyers secure lower-interest loans  

Buyers are continuing to put more money down, likely in an effort to lower their mortgage payments in an elevated interest rate environment. Last year, the National Association of Realtors reported that down payments for first-time buyers reached a record high, and repeat buyers put down the highest percentage since 2005. And in the first quarter of 2024, Realtor.com noted that down payments had nearly doubled in the past four years. 

Zillow's latest report showed a similar trend: For the second year in a row, 52% of buyers paid a down payment of 20% or more — a big jump from the previous few years, when mortgage rates were historically low. Between 2019 and 2022, only around 40% of buyers shelled out 20% or more, according to Zillow data.

Interestingly, even though average mortgage rates have exceeded 6% for the past two years, Zillow found that nearly half (45%) of homebuyers getting a mortgage were able to secure a rate under 5%. 

The most common reason, according to respondents, was that the seller or homebuilder agreed to finance their purchase at a lower rate or offered a rate buydown. A quarter of those who managed to get a rate below 5% said it was because they refinanced to a lower rate after buying their home.

A/C edges out budgetary considerations as top buyer priority

Buyers may be struggling with affordability, but they still want to be comfortable in their new home. 

Zillow found that among the home characteristics buyers considered to be "very or extremely important," air conditioning came out on top, with 83% listing it as a must-have. In second place was staying within the initial budget, which was a high priority for 79% of buyers. This was the first time in the survey's history that more buyers prioritized A/C over sticking with their budget. 

Other important considerations included finding a home with the right number of bedrooms (73% said this was very important), the right square footage (70%) and private outdoor space (70%).