Meet the typical American who's trying to buy a home

The typical prospective homebuyer is an elder millennial, with a median age of 39. Their successful homebuyer counterparts are a bit younger, at 35.

According to data from Zillow, approximately 62% of prospective homebuyers were born before 1980, approximately 10% are 60 or older, and 22% are in their 20s or younger.

The contrast between these demographics underscores differing attitudes towards homeownership — mostly driven by affordability.

An April study from Zillow shows that more than half of Gen Zers and millennials believe they'd need to win the lottery in order to afford a home purchase.

"Combine rising rates with record-breaking home value appreciation and it's easy to understand why younger generations are wondering how they'll ever be able to afford a home," Amanda Pendleton, Zillow's home trends expert, said in the report.

It's getting even more costly to pursue homeownership.

As of August, the US median home price is $349,770, up 0.4% from the same time period in 2022. And as of last week, the average rate for a 30-year fixed mortgage is 7.18%, up from 6.02% during the same week in 2022, according to Freddie Mac.

Confronted by escalated home prices and heightened mortgage rates, this year's potential homebuyers will need even deeper pockets to afford homeownership, particularly in light of the ongoing surge in inflation.

So it comes as no surprise that in 2023, those who plan or manage to buy a home have higher incomes than the general population.

According to Zillow, the median prospective buyer reports a household income between $100,000 and $124,999. A successful buyer's annual median household income is approximately $96,590. The figures are significantly above the overall national median household income of $74,580, as of 2022.

Despite having higher incomes than the general population, prospective homebuyers are still struggling to afford their down payments.

It all comes down to their savings. Researchers at Zillow found that among those who intend to finance their home purchase with a mortgage, 52% reported pausing or delaying the origination process at least once to save up enough money for a down payment.

But even after saving up for a down payment, prospective buyers are putting down less than 20%, typically the recommended amount for a home purchase.

"We found that mortgage buyers who had some type of student loan debt were less likely to put down at least 20% on their home," Garcia told Insider.

According to Zillow, while the majority of successful mortgage buyers reported putting down at least 20% this year, 56% of prospective buyers reported that they intend to put down less than 20% — with the median share of these buyers planning to put down as little as 10% to 19% of the final purchase price.

Several states in the South — like Texas, Georgia, and Alabama — have appeared on numerous lists that highlight the best and most affordable US housing markets.

That's why it's not shocking that the region has the highest share of prospective buyers, according to Zillow. The brokerage's data shows that 34% of prospective buyers live in the South, followed by 29% in the West, and 19% and 18% in the Midwest and Northeast, respectively.

The distribution suggests that southern prospective buyers are more likely to succeed in home buying than their peers in the Northeast and West, Zillow researchers wrote.

"For the most part, folks are chasing affordability," Garcia said, adding that states like Texas also have a lot more housing inventory, which has kept home prices down.

The median home price in Texas, a popular destination for home buyers, was $302,281 in August, nearly $48,000 below the national median price of $349,770.

In an increasingly perilous world where the consequences of the climate crisis are becoming more serious, many prospective buyers are factoring this into their home purchasing decisions.

Zillow's report indicates that 83% of prospective buyers say that at least one climate risk has determined where they shop for a home. Of all risks, flooding is a top concern at 41%, followed by wildfires and extreme temperatures, both at 37%.

In housing markets like Florida, these risks are also pushing long-term residents out. Since 2000, the state has experienced five federally declared natural disasters in the form of strong hurricanes and tropical storms.

It has not only brought about severe housing damage, but it has also cost the state, homeowners, insurance companies, and taxpayers billions of dollars.