Houses in a row on a suburban street.

120+ Must-Know Home Buying And Mortgage Statistics For 2023

Victoria Araj15-minute read

January 27, 2023

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The housing market is rapidly evolving, so it’s important to pay attention to trends and understand how different factors can affect one another. One way to better understand the market is to analyze overarching themes and different real estate statistics. For instance, did you know that 90% of millennials would buy a home without seeing it first? Or that 65% of homeowners are interested in solar power?

To give home buyers a better understanding of this information, we’ve focused on mortgage trends and home-buying statistics.

Below is a table that you can use to jump to your desired section. We’ve also created a graphic with the most important takeaways and stats for 2023.

Table Of Contents:

Home Buying Statistics

Buying a home is a dream for many Americans. We included a variety of different home buying stats to show how this American dream has been helping bring families and communities together, building generational wealth and creating the best moments of our lives for generations. This includes U.S. homeownership rates, favorite types of homes, preferred neighborhoods, and home buyer preferences and practices.

Below are top home buying stats you should know for 2023:

1. The top reported first step in a home buyer's process was looking online for properties for sale (41%), followed by contacting a real estate agent (19%). (NAR, 2022)

2. 31% of all buyers had one or more children under the age of 18 residing in the home. (NAR, 2022)

3. In September 2022, there were 732,276 active home listings, up 26% when compared to active listings in September 2021. (FRED)

4. On average, buyers spend 8 weeks searching for a home. (NAR, 2022)

Home Buyer Stats: Motivations And Characteristics

Circle graph breaking down different types of home buyers.

Whether you’re buying or selling your home, it pays to understand the motivations and characteristics of the housing market. For example, as a buyer, you may find a way to snap up a great deal by going after a fixer-upper that’s drawing less attention than a nearby move-in-ready home – especially if you’re looking for a starter home and could use the extra funds.

5. The highest reported reason for purchasing a home was the desire to be a homeowner, reported by 28% of all buyers. (NAR, 2022)

6. The median household income of home buyers was $102,000, with 14% of all home buyers earning between $100,000 and $124,999 per year. (NAR, 2022)

7. First-time buyers made up 34% of all home buyers. (NAR, 2022)

8. 81% of buyers in the 23 – 31-year-old age group were buying a house for the first time. (NAR, 2022)

9. 27% of all home buyers felt they made no compromises in the home they purchased. The top reported compromises were the price, condition and size of the home. (NAR, 2022)

10. When looking at prior living arrangements, 51% of buyers owned a home previously, while 37% of buyers rented an apartment or house before purchasing. (NAR, 2022)

11. As home buyers, single women outnumbered single men 18% to 9%, respectively. (NAR, 2022)

12. 60% of home buyers were married couples, and 9% were unmarried couples. (NAR, 2022)

13. Home buyers who have children under the age of 18 living at home accounted for 31% of all buyers. (NAR, 2022)

14. When looking at buyers 32 – 41 years old, 59% reported having at least one child under 18 living in the home. (NAR, 2022)

15. Buyers ages 42 – 56 had the highest household incomes of any generation, at $125,000. (NAR, 2022)

16. 72% of all home buyers had a bachelor's degree or higher. (NAR, 2022) 

Homeownership Rates

Graph of America showing homeownership rates.

So, who’s buying homes these days? People of all ages and backgrounds. Homeownership rates can be a sign of the overall economic standings of an area or a group of people. See some of these different rates broken down by various factors and demographics.

17. The U.S. homeownership rate rose to 66% in Q3 2022, compared to 64.8% in Q3 2021. (S. Census Bureau, Q3 2022)

18. In Q3 2022, the homeownership rate was highest in the Midwest (70.1%), followed by the South (67.5%), the Northeast (63%) and the West (62%). (S. Census Bureau, Q3 2022)

19. In Q1 2020, the homeownership rate was highest for those age 65 and over (79.5%) and lowest for those under 35 (39.3%). (S. Census Bureau, Q3 2022)

20. Homeownership rates for households with an income greater than or equal to the median household income sat at 79.4% in Q3 2022, up just 0.4% from 2021. (S. Census Bureau, Q3 2022)

21. The homeownership rate for households with income less than the median family income sat at 52.7%, up a full percentage point from 2021. (S. Census Bureau, Q3 2022)

Home Buying Process

The home buying process can be a confusing journey for those new to the inner workings of real estate. See stats on the buying process, including info on the length of the process and common practices.

How Much and How Many

22. The median price for a newly built home sold was $542,900 in September 2022, up 14.8% from 2021. (FRED, Q3 2022)

23. The median price for an existing home was $384,800 in September 2022, up 8.4% from the same period in 2021. (FRED, Q3 2022)

24. The total number of existing home sales dropped by 23.8% between September 2021 and September 2022. (FRED, Q3 2022)

25. The homeowner vacancy rate in Q3 2022 sat at just 0.9%. (FRED, Q3 2022)

26. Active listings rose by 2% from September 2021 to September 2022. (FRED, Q3 2022)

27. Of the 850,000 homes on the market in 2022, 740,00 were single-family homes, while 110,000 were condos or co-ops. (JCHS, 2022)

Information And Methods

28. Finding the right property was the most difficult step in the home buying process for 56% of all buyers. (NAR, 2022)

29. The top reported first step in a home buyer's process was looking online for properties for sale, reported at 41%, followed by contacting a real estate agent at 19%. (NAR, 2022)

30. Only 9% of buyers contacted the bank or lender before diving into the home buying process. (NAR, 2022)

31. 51% of all buyers found their homes through the internet, while 28% used a real estate agent. (NAR, 2022)

32. Buyers under the age of 56 generally preferred mobile devices in their home search, while buyers 57 and older preferred desktops or laptops in their home search. (NAR, 2022)

33. 87% of all buyers purchased their homes through a real estate agent. (NAR, 2022)

34. 55% of real estate agents were compensated by the seller. (NAR, 2022)

35. The most common way buyers found real estate agents was through friends or relatives. (NAR, 2022)

36. 73% of home buyers interviewed just one real estate agent before buying their home. (NAR, 2022)

37. The most important factors in choosing a real estate agent were honesty and trustworthiness for 20% of all buyers, followed by experience at 19% and reputation at 17%. (NAR, 2022)

38. 75% of buyers would “definitely” use the agent again or recommend them to their friends and family. (NAR, 2022)

Timing And Search Duration

39. When looking at the timing of a home purchase, 15% of buyers felt that they did not have much choice and had to purchase when they did, and 1% wished they had waited. (NAR, 2022)

40. The total number of showings fell by 17% from September 2021 to 2022. (ShowingTime, 2022)

41. On average, buyers spent 8 weeks and saw an average of eight properties before purchasing their new home. (NAR, 2022)

42. May is the worst month to buy a property, with seller premiums clocking in at 10.5%, while October is generally the best month, with premiums sitting at just 3.3% (ATTOM, 2022)

43. The average time from offer to close was 50 days. (Ellie Mae, 2021)

Type Of Home

Infographic showing percentage of buyers buying single family homes.

Homes come in all shapes and sizes, ages and styles – some new construction and some previously owned fixer-uppers. Each property has its own pros and cons, so understanding what’s desirable could give you a leg up in negotiations. Some of the most important characteristics to buyers were things like move-in ready property perks and privacy.

Home Characteristics

44. 82% of buyers purchased detached single-family homes. (NAR, 2022)

45. Buyers between the ages of 22 and 30 purchased townhomes at higher rates than other generations. (NAR, 2022)

46. Homes with open floor plans are preferred by 91% of buyers. (com, 2021)

47. When it comes to the exterior design of a home, 32% of buyers prefer traditional builds, 24% prefer contemporary homes, 16% want transitional homes and 14% want a modern home. (NAHB, 2021)

48. Buyers overwhelmingly prefer homes with open layout floor plans, with just 15% of buyers looking for walled kitchens. (NAHB, 2021)

49. The two most desired home features across generations are a laundry room and exterior lighting. (NAHB, 2021)

50. 78% of buyers are concerned about their home’s environmental impact, but only 15% are willing to pay a premium for a home described as “environmentally friendly.” (NAHB, 2021) 

New Vs. Previously Owned

51. Most buyers favored previously owned properties, with only 15% of buyers opting for newly built homes. (NAR, 2022)

52. The top three reasons reported in favor of purchasing a new home include avoiding renovations, the ability to customize and the amenities of new home communities. (NAR, 2022)

53. The top three reasons reported in favor of purchasing a previously owned home include better value, better overall price and more charm or character. (NAR, 2022)

Home Size

54. Roughly 7 in 10 millennials (70%) and Gen Xers (71%) say they would be willing to sacrifice home size for a move-in-ready home. Boomers agree but at a lower rate (63%). (Coldwell Banker, 2020)

55. Buyers want a median of 2,022 square feet of space, though the average size of homes purchased was just 1,900 square feet. (NAR, 2022)

56. The average home purchased had three bedrooms and two bathrooms. (NAR, 2022)

57. Buyers ages 42 – 56 purchased the largest median home size at 2,400 square feet; buyers 31 and younger bought the smallest properties, with an average size of 1,800 square feet. (NAR, 2022)

Neighborhoods

Infographic quote about neighborhood factors.

Location, location, location has been shown to be the home buying priority once again. Let’s look at what makes a desirable neighborhood and property location.

Neighborhood Characteristics

58. 51% of homes were purchased in suburban neighborhoods, while just 13% were purchased in urban centers. (NAR, 2022)

59. The top reported factors that influenced neighborhood choice was the quality of the neighborhood, convenience for family and friends and job convenience. (NAR, 2022)

60. The metro areas with the highest gains in home prices were all in Florida: Cape Coral at 41.1%, North Port at 34.8%, Tampa at 31.2% and West Palm Beach at 30.4%. (JCHS, 2022)

61. The metro areas with the smallest increases in home prices were Cambridge, MA, at 9.1%, Washington, D.C., at 11%, Minneapolis, MN, at 11.5%, and New York City, at 11.7%. (JCHS, 2022)

62. Vacancy rates in top-choice urban neighborhoods plummeted from 9.6% in Q3 2020 to 5.9% in Q1 2021 (JCHS, 2022)

Senior Home Buying Stats

It may not be a secret that older generations had the highest rate of homeownership, but did you know that home buyers above 65 years of age opted for smaller houses? Here are a few stats to consider about senior home buying trends.

Infographic of an older man shrugging with statistics above him.

63. People over the age of 65 were more likely to buy newer homes. (NAR, 2022)

64. Older home buyers saw higher rates of rural and small-town home purchases than younger generations. (NAR, 2022)

65. Home buyers above 65 opted for smaller houses on average. (NAR, 2022)

66. When looking at neighborhood choices, seniors ages 65+ reported the quality of the neighborhood to be the most important. (NAR, 2022)

67. 36% of home buyers 65 and older found their homes through a real estate agent, while 20% of buyers 76 and older found their homes through a friend or relative. (NAR, 2022)

68. Seniors had the highest rate of homeownership at 79.5%. (S. Census Bureau, Q3 2022)

69. 33% of buyers 76 or older reported that they would never move. They are living in their forever home. (NAR, 2022)

Millennial Home Buying Stats

Infographic quote about millennial home buying stats.

Millennials are proving to be serious buyers who want to grow their wealth and be happy in their own property – just as much as other generations. We’ve rounded up some stats on this important buyer and seller market segment.

70. 36% of all buyers and 47% of those 30 and younger reported that the top reason for purchasing a new home was to avoid renovations or issues with plumbing or electricity. (NAR, 2022)

71. Those 30 and younger purchased homes with a median price of $250,000. (NAR, 2022)

72. Buyers ages 31 – 40 had an average home purchase price of $315,000. (NAR, 2022)

73. Millennials made up the largest share of home buyers in 2020 at 45%. (NAR, 2022)

74. More than 60% of all buyers under 41 found the home they bought on the internet. (NAR, 2022)

75. If the price was right, 90% of millennials would buy a house without seeing it first. (Real Estate Witch, 2022)

76. 46% of millennials would buy a house because of its investment value. (Real Estate Witch, 2022)

77. 2 out of 5 millennials are prepared to pay more than asking for their dream home. (Real Estate Witch, 2022)

78. A quarter of millennials who have bought fixer-uppers regret it. (Real Estate Witch, 2022)

79. 61% of people under the age of 31 rented before purchasing a home. For those ages 32 – 41, 45% rented before purchasing. (NAR, 2022)

80. Of buyers under 31 years old, 32% reported that commuting costs were very important. (NAR, 2022)

81. A majority (54%) of millennials say living close to bars and nightlife is important; those numbers drop slightly for Gen Xers (46%) and boomers (34%). (Coldwell Banker, 2020)

82. The most important environmentally friendly home feature for 27% of home buyers under 31 was heating and cooling costs. (NAR, 2022)

83. 67% of homeowners without solar power say they are considering getting it in the future. (Rocket Research, 2022)

84. The top factor that could cause buyers 31 and younger to move is life changes, followed by wanting a larger home. (NAR, 2022)

Mortgage Statistics

Your mortgage will have a big impact on your future financial situation. Selecting the right mortgage is a crucial part of the home buying process – things like getting preapproved and having a strong credit score can help you finance the home of your dreams.

Infographic quote about mortgage loans dropping since covid-19.

See a couple of highlights from the following mortgage statistics:

85. Total mortgage loans in forbearance have dropped to 360,000 in September, a 94% decline since the height of the COVID-19 pandemic in 2020. (MBA, 2022)

86. The median asking price for units on the market was $301,700 in Q3 2022. (S. Census Bureau, 2022)

87. The average credit score for buyers taking a mortgage loan was 743. (CFPB, 2021)

88. The median mortgage payment increased to $1,941 in September, a 40% increase since the beginning of 2022. (MBA, 2022)

89. The median mortgage payment for FHA loans jumped to $1,566, up from $1,022 the year prior. (MBA, 2022)

90. The median loan amount in September 2022 was $305,550, a 10% drop from February’s peak. (MBA, 2022)

Mortgage Figures And Stats

Infographic quote about median asking price.

Below we look at some different aspects of mortgages, including origination rates, types of home loans and the popularity of different types of mortgages.

91. National mortgage payments compared to income increased 5.5% in September, reversing 4 months of declines. (MBA, 2022)

92. The total number of closed-end mortgage originations increased slightly from 13.6 million in 2020 to 13.7 million in 2021. (CFPB, 2021)

93. Refinance loan originations fell by 1.7% to 8.3 million in 2021. (CFPB, 2021)

94. The number of home improvement loans secured rose from 142,000 in 2020 to 152,000 in 2021. (CFPB, 2021)

95. Mortgage originations have fallen from an all-time high of $1.35 trillion to just under $668 billion in Q3 2022. (YCharts, 2022)

96. FHA loans accounted for 7.35% of all mortgage market share in Q2 2022. (HUD, 2022)

97. In 2021, approximately 7.9% of home purchase loans went to Black borrowers, up from 6.8% in 2018. (CFPB, 2021)

98. 55.6% of home loans went to non-Hispanic white borrowers, down slightly from 62%. (CFPB, 2021)

99. An increase in the share of refinance loans by Asian borrowers for first-line, one-to-four-family, owner-occupied and site-built properties jumped from 5.5% in 2019 to 7.1% in 2021. (CFPB, 2021)

Mortgage Rate Stats

High inflation and the Federal Reserve’s response have driven 30-year fixed-rate mortgages to their highest levels since 2002. This has sparked a drop in overall applications.

Since rates change all the time, you should use a mortgage rate tool to track their movements. See top stats and historic Freddie Mac rate averages below:

100. In October 2022, the average 30-year fixed-rate mortgage was 6.9% compared to 3.07% during the same time in 2021. (Freddie Mac, 2022)

101. The average 15-year fixed-rate mortgage in October 2022 hit 6.15%, up from 2.31% the year prior. (Freddie Mac, 2022)

102. The last time 15-year fixed interest rates rose above 6% was in August 2008. (Freddie Mac, 2022)

103. It has been more than 20 years since 30-year fixed-rate mortgages rose above 6.9%. (Freddie Mac, 2022)

30-Year Mortgage Rates

Year

Annual Average

Year

Annual Average

2003

5.83%

2013

3.98%

2004

5.84%

2014

4.17%

2005

5.87%

2015

3.85%

2006

6.41%

2016

3.65%

2007

6.34%

2017

3.99%

2008

6.03%

2018

4.54%

2009

5.04%

2019

3.94%

2010

4.69%

2020

3.11%

2011

4.45%

2021

2.92%

2012

3.66%

2022

5.08%

104. The average 30-year mortgage rate for 2022 was 5.08%. (Freddie Mac, 2022)

15-Year Mortgage Rates

Year

Annual Average

Year

Annual Average

2003

5.17%

2013

3.11%

2004

5.21%

2014

3.29%

2005

5.42%

2015

3.09%

2006

6.07%

2016

2.93%

2007

6.03%

2017

3.28%

2008

5.62%

2018

4%

2009

4.57%

2019

3.39%

2010

4.10%

2020

2.61%

2011

3.70%

2021

2.25%

2012

2.93%

2022

4.3%

 

105. The average 15-year mortgage rate for 2022 was 4.3%. (Freddie Mac, 2022)

Mortgage Denial And Acceptance Rates

Horizontal bar graph about the distribution of home loans by race.

In addition to mortgage rates, we looked into mortgage denials and acceptances as well as average loan sizes and credit scores. See some stats and charts below.

106. Denial rates for home purchase loans fell by 1% from 2020 to 2021, while denial rates for refinancing loans climbed by 1% through the same period. (CFPB, 2021)

107. 12.4% of FHA applications were denied in 2021. (CFPB, 2021)

108. FSA/RHS loans had a denial rate of 10.1%. (CFPB, 2021)

109.vWhen looking at new approved noncommercial mortgages, the average credit score was 737 in December 2021. (FHFA, 2022)

110. For those with a credit score under 600, their share of the total new mortgages was only 0.1% in December 2021. (FHFA, 2022)

111. The average loan-to-value ratio was 72% in September 2020 for non-enterprise mortgages. (FHFA, 2022)

112. The average purchase price was $485,000 in December 2021. (FHFA, 2022)

113. In December 2021, the average mortgage loan amount was $325,000. (FHFA, 2022)

114. The average age of borrowers sat at 47 years old in December 2021. (FHFA, 2022)

Mortgage Debt Statistics

Infographic quote about mortgage debts.

Debt related to housing is the largest category of American debt, in front of other loans like auto, student and credit card loans. When lenders evaluate a potential mortgage recipient, they look closely at your debt-to-income ratio, so it’s very important to stay on top of your debt.

115. Total housing debt rose to $11.71 trillion in Q1 2022. (Federal Reserve Bank of New York, 2022)

116. Total U.S. mortgage debt rose to $11.67 trillion in Q3 2022. (Federal Reserve Bank of New York, 2022)

117. 62% of homeowners are forgoing essentials in order to be able to cope with housing costs. (Consumer Affairs, 2022)

118. 46% of people are performing a side hustle or working a second job in order to afford housing costs. (Consumer Affairs, 2022)

119. Paying down debt is the number one reason some Americans struggle to afford their first home. Among those who have purchased a home, 26% cite this as the main reason they struggled to afford their first home, while just 6% said spending on luxury items, 5% said dining out at restaurants and 5% said travel. (Coldwell Banker, 2020)

120. Delinquency rates for Q2 2022 dropped to 3.64%, down from 5.47% a year prior. (HUD, Q2 2022)

121. About 95,000 consumers had a bankruptcy notation added to their credit reports in Q2 2022, a notable decrease from Q1 2022. (Center for Microeconomic Data, 2022)

122. In Q2 2022, 0.5% of current mortgage balances were 90+ days past due. (Federal Reserve Bank of New York, 2022)

123. Around 35,000 people had a new foreclosure added to their credit reports in Q2 2022, a dramatic increase from the 8,100 during the same period in 2021 while there was a moratorium on foreclosures. (Federal Reserve Bank of New York, 2022)

Home Buying And Mortgage Loan Q&A

Mortgages and home buying can be confusing, but they don’t have to be with a Home Loan Expert on your side. See some of the most-asked home buying questions and their answers below.

Which Age Group Buys The Most Houses?

Millennials continued to be the largest home buying age group through 2022 – they make up 43% of total home buyers. (NAR, 2022)

What Percentage Of Home Buyers Start Their Search Online?

41% of home buyers started their search online in 2022 and 51% of all buyers found their home through the internet, though it wasn’t necessarily their first step. (NAR, 2022)

How Many Mortgage Originations Are There In A Year?

The number of closed-end originations in 2021, the latest year reported, was 13.7 million. (CFPB, 2021)

What Is The Median Mortgage In The US?

The median mortgage payment increased to $1,941 in September 2022, a 40% increase since the beginning of the year. Median mortgage payments for FHA loans jumped to $1,566, up from $1,022 the year prior. (MBA, 2022)

How Many Americans Own Their Home?

The U.S. Census estimates that 66% of all Americans own a home. (U.S. Census Bureau, 2022)

Home Buying Stats and Trends Visual Summary

See and share a culmination of some of the most important home buying statistics for 2022 in the visual below.

Infographic about home buying in 2023.

Victoria Araj

Victoria Araj is a Section Editor for Rocket Mortgage and held roles in mortgage banking, public relations and more in her 15+ years with the company. She holds a bachelor’s degree in journalism with an emphasis in political science from Michigan State University, and a master’s degree in public administration from the University of Michigan.