Affordability Challenges

Home Affordability

This week, I read a discouraging article from the National Association of Realtors. The article stated that the average age of homebuyers went from 49 last year to 56. I think this sheds some light on the affordability challenges for today’s homebuyers.

First-Time Homebuyers

In the past four years, the average age of first-time homebuyers has surged by six years to 38, highlighting the mounting financial stressors on younger generations. I was able to buy my first condo at 22 years old (that was in 1980), my second home at 26, and our family home at 33. High prices on homes, rising interest rates, and difficulty saving money with student loans and other expenses have pushed homeownership out of reach for many under 40, fundamentally reshaping what was once considered the “American Dream.” First-time homebuyers represent just 24% of all buyers, the lowest percentage since the NAR began tracking this information.