The Struggle of First-Time Homeownership
It seems that the face of homeownership is changing. The image of young, expectant couples venturing into the market for their first home is becoming increasingly rare. Now, it appears that the average age of first-time home buyers is nearing retirement. The current average buyer’s age is now 59, which speaks volumes about the state of the housing market.
The new generation of first-time home buyers is finding it remarkably difficult to afford their first home. In fact, only 20% of homes sold within the last year were to first-time buyers. This is a record low and a stark contrast to the housing market of previous generations.
The Challenges Faced by First-Time Buyers
The housing market presents a variety of obstacles for first-time buyers. The lack of available homes, particularly for young adults, is a significant issue. The inability to secure a home makes it difficult for these young adults to make their first significant financial investment.
Consider the story of Eve Burdick and her husband Cael. The couple recently marked their first wedding anniversary and are at the point in their lives where they'd ideally be searching for their first home. However, they've found that the price tags on homes in their city, even though they are below the national average, are still far higher than they can afford.
Yet, in the past, homeownership at their age wasn't uncommon. For instance, Eve's parents had been homeowners for several years by the time they reached her age. However, this trend seems to be shifting, with fewer young couples able to afford homes.
What's Holding Back First-Time Buyers?
One of the main issues is that current homeowners, who often benefit from lower mortgage rates, are choosing to stay in their homes for longer than before. This trend means there are fewer homes available for new buyers. On top of this, the cost of living continues to rise, making it difficult for first-time buyers to save up for a down payment. This issue is particularly acute for those already dealing with other forms of debt.
Take Eve and her husband, for example. They're currently dealing with student and medical debt, and a period of unemployment has significantly depleted their savings. As a result, they feel they're falling behind in their plans to own a home. They initially thought they'd be homeowners within a year. Now, they're looking at a timeline of three to four years, which means they'll be in their mid-30s before they can buy a house.
The Economy's Impact on Homeownership
The current economic situation is another factor making homeownership more challenging. Sasha Skelton and her partner, both in their mid-30s and working full-time jobs, have had to put their house-hunting plans on hold. They wish they had bought a house a few years ago when interest rates were lower, but they were consistently outbid. Now, they're finding that everything in their local market is too expensive.
Given the economic uncertainty and the cost of living, Sasha is hesitant to take the plunge into homeownership. The fear of losing their jobs and potentially their home is a significant concern for them. Despite this, they haven't entirely abandoned their dream of owning a home.
As Sasha puts it, "I was an Army brat, so it would be nice to settle down and have a home where we can put our roots in. It's just the market right now is not where we want it."