Moneymoneynycmoneychangers

Fri Nov 8, 2019, 12:14 PM

Young Homebuyers Are Vanishing From The U.S.


BLOOMBERG NEWS 6:39 AM ET

Faced with higher property prices and piles of student debt, Americans are getting older and older before they buy a home.

The median age of first-time home buyers has increased to 33, the oldest in records dating back to 1981, according to a National Association of Realtors report released Friday. The median age of all buyers also hit a fresh record, 47, increasing for a third straight year — and well above the median age of 31 in 1981.

While the median age of first-time home buyers only rose by one year, the increase reflects a variety of factors facing Americans searching for a home.

A nationwide shortage of affordable housing, coupled with lower mortgage rates, has stoked prices in cities from the coasts to the heartland. At the same time, student loans and other debts make it harder for Americans to save tens of thousands of dollars for a down payment, while tight lending standards can make getting a bank loan difficult for borrowers with less-than-stellar credit scores.

"Housing affordability is so difficult today, especially when coupled with rising rents and student loan debt, that they're finding different ways to enter home ownership," said Jessica Lautz, vice president of demographics and behavioral insights at the Realtors group in Washington.

The characteristics of home buyers have changed in recent years. The share of married couples has declined as unmarried couples and those purchasing as roommates has risen.

As buyers' ages have increased, so have their incomes. The typical income of purchasers rose to $93,200 in 2018 as a lack of affordable options squeezed lower-income potential buyers out of the market.

more...

https://www.investors.com/news/home-young-us-rits-older/

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Reply Young Homebuyers Are Vanishing From The U.S. (Original post)
RCW2014 Friday OP
His Daughter Friday #1
BigKahunna2.0 Friday #2
oflguy Saturday #3

Response to RCW2014 (Original post)

Fri Nov 8, 2019, 02:07 PM

1. No surprise there

Even mobile/manufactured home prices have skyrocketed after disasters and have not yet come down. CA is worse of course. Starter homes are now long term family homes.

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Response to RCW2014 (Original post)

Fri Nov 8, 2019, 02:49 PM

2. Don't know if this is a good thing as this will also effect their long term finances as well.

Last edited Sat Nov 9, 2019, 07:37 AM - Edit history (1)

By waiting longer their first home will cost more and they will miss out on any appreciation and tax savings during those years they wait.

By buying what they can afford early on, they would benefit from the tax savings and the appreciation and they wouldn't have wasted all that money on rent for the extra years. After 3-5 years of ownership they could move up into a much nicer property and be much further ahead.

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Response to RCW2014 (Original post)

Sat Nov 9, 2019, 09:08 AM

3. What? No American Flag in the post??

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