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Older First-Time Homebuyers Face Record High Prices and Housing Shortage
First-time homebuyers in the U.S. are getting older and facing a challenging market due to high home prices, a significant housing shortage, and increased competition.
English
United States
EconomyUs PoliticsLabour MarketLifestyleReal EstateHousingMarketAffordability
National Association Of RealtorsZillowHgtvCorelogicRedfin
Jessica LautzOrphe DivounguyJonathan ScottSelma Hepp
- What is the extent of the current U.S. housing shortage and what are its main contributing factors?
- The housing shortage in the U.S. is around 4 million homes, significantly impacting affordability and pushing up prices. This shortage is exacerbated by slow construction and increased competition.
- What is the current state of new home construction, and how does it affect the overall housing market?
- While single-family housing starts saw a slight increase in September, the market remains constrained, resulting in continued pressure on home prices. Experts predict that without significant changes, young people will struggle to afford homes in the coming years.
- What is the current median age of first-time homebuyers in the U.S. and how does it compare to previous years?
- The median age of first-time homebuyers in the U.S. has reached a record high of 38 years old, three years older than in July 2023, due to factors like higher home prices and a housing shortage.
- What other economic factors besides the housing shortage are making homeownership challenging for many Americans?
- High rent costs and increased debt-to-income ratios are making it challenging for potential homebuyers to save enough for a down payment. Rent growth outpaced wage growth during the pandemic, exacerbating this issue.
- How has the percentage of first-time homebuyers changed in the past year, and what are some contributing reasons for this shift?
- The share of first-time homebuyers has dropped to its lowest point since 1981, currently at 24%, down from 32% the previous year. This decline is linked to the housing shortage and increased competition from wealthier buyers.