this post was submitted on 04 Nov 2024
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Economics

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The average age of U.S. homebuyers jumps to 56—homes are 'wildly unaffordable' for young people, real estate expert says (www.cnbc.com)
submitted 1 week ago* (last edited 1 week ago) by MicroWave@lemmy.world to c/economics@lemmy.world
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Summary

The average age of U.S. homebuyers has reached a record high of 56, as younger Americans face rising homeownership costs. The median age for first-time buyers rose to 38, with only 24% of buyers being first-timers—the lowest share since 1981.

High home prices, averaging $435,000, and increased mortgage rates make saving for down payments nearly impossible for many younger buyers, who often lack wealth or home equity to compete with older, wealthier bidders.

With all-cash buyers now representing 26% of purchases, many young buyers rely on family gifts or loans.

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[–] moistclump@lemmy.world 4 points 1 week ago

:(

The median age of first-time buyers also rose from 35 to 38, while the share of first-timers dropped from 32% to 24% of all buyers for the year ending July 2024. That marks the lowest percentage since NAR started tracking the metric in 1981.

That's largely due to rising homeownership costs, he says. The median U.S. home price is now $435,000, per NAR — up 39% since 2020 — while the average 30-year fixed mortgage rate has more than doubled to over 6% in that time.