We recently posted about how most Americans are renting homes and apartments instead of buying them. This claim is further supported by looking at The Millennial generation’s lifestyle and a graph that shows a declining number of first-time homebuyers.
The Millennials are one of the biggest generations in US history. Most members of this generation have less disposable income, lower credit scores and many live at home with their parents. The National Association of Realtors (NAR) recently announced that first-time homebuyers has hit its biggest low in the past 27 years. The average first-time buyer is 31 years-old and the average repeat buyer is 53.
“The long-term average in this survey, dating back to 1981, shows that four out of 10 purchases are from first-time home buyers. In this year’s survey,* the share of first-time buyers dropped 5 percentage points from a year ago to 33 percent, representing the lowest share since 1987 (30 percent).”**
Organizations like the NAR claim that this decline is because of competition from investors and highly regulated credit standards. Others disagree…
Regardless, the fact that one of the largest generations in US history is either unable or unwilling to buy homes or apartments certainly qualifies as a worthy industry update!