Did you know that first time home buyers are waiting longer than ever to buy their first home in the U.S.? One might wonder why this is happening and we have the answer!
Why Are First Time Buyers Waiting? | North Raleigh Real Estate
Whether they're short on cash or unable to make a decision career-wise, many younger Americans are waiting to buy their first homes. They're actually waiting longer than they ever have. In a generation past, first time home buyers were typically three years younger than they are now. It is thought that the main reason for this lies within the fact that millennials today can't accumulate enough money for a down payment.
Below, you 'll find several facts, according to cnbc.com, about mellennials buying their first home:
- The typical first-timer now rents for six years before buying a home, up from 2.6 years in the early 1970s.
- The median first-time buyer is age 33—in the upper range of the millennial generation, which roughly spans ages 18 to 34.
- The share of the U.S. population who own homes has slid to 63.4 percent, a 48-year low.
- First-time buyers are paying a median price of $140,238, nearly 2.6 times their income. In the early 1970s, the starter home was just 1.7 times income.
In addition to not having a down payment handy, millennials are also delayed in marriage, having children and finding a career. In generations past, it was typically for a young adult to have a career, get married and have their first child by the age of thirty. Now? Many are waiting until the age of thirty to find their first career. They're getting married a couple years after that. Some couples are now waiting until 35 years of age or older to have children. This plays a large part in the overall reason why young adults are waiting so long to buy their first home.
One more reason? Home prices are much higher now, than they were twenty years ago. It's a bit scary for a first time home buyer to go out and find a home that fits their needs, only to realize how expensive it is for them. Millenials are interested in buying homes, they're just delaying that interest until things settle down and they're fully established in life.
If you're interested in learning more about first time home buyers and how long they're waiting to buy a home, be sure to visit back with our next blog!
With the lower interest rates and increased sales, it's a great time for buyers to really consider purchasing a home before the end of this year. Contact us if you're ready to start the search for your new home!
Roark Premier Team | North Raleigh Real Estate
But, if you’re considering selling your home, it's time to act now! Contact Roark Premier Team today and get started with the process of listing your home on the market! We guarantee to sell your home in 59 days or less! If we don’t, the listing fee is waived! So what are you waiting for? Call now! Our North Raleigh real estate agent is standing by to help you get your home sold during one of the busiest times of the year for real estate!