Homeownership has declined among young Americans, especially millennials (born between 1980-2000). The average age of a first-time home buyer is now 36, the oldest ever on record at the National Association of Realtors (NAR).
In 2021, the age of a typical first-time homebuyer was 33, and millennials made up the largest share that year. New data from the NAR also show that Baby boomers (aged 58-76) made up the largest share of home buyers in 2022 at 39%.
Why?
Fed rate hikes, housing inventory shortage, and the lingering effects of the COVID-19 pandemic are the main reasons fewer millennials own new homes.
Additionally, millennials have been the first generation to be hit with three recessions. The dot-com bubble burst in 2000, the Great Recession of 2008, and the recent pandemic’s impact on the economy.
Advice
Mortgage rates are so high that purchasing a dream house is turning into a dream for several young Americans. But there are ways to make it a reality.
Realtors are advising homebuyers to “Marry the house, date the rate,” buy a home and wait for the interest rates to fall, and then refinance.