These factors have the real estate market of many first buyers of home buyers, who are usually younger generations such as Gen Z and Millennials. In fact, the real estate market has become so unaffordable for these buyers shrunk to a historical low point.
In order to put it in the right perspective, the number of first buyers in 2004 was with shared data with shared data in 2004 Assets on Tuesday. By 2024, this number had dropped to only 1.14 million.
And many brokers and real estate experts do not expect this trend to change, especially if interest rates, inventory or wage growth do not lead to the favor of the first buyers.
“We see a redesign of the home managers”, ” Alexandra GupaA real estate agent with The Corcoran grouptold Assets. The company was founded by Hai tank Star, investor and real estate legend Barbara Corcoran.
“Some first buyers turn to long -term rent or even with the living models because the idea of having a house has become so out of reach,” said Guppa. Others rely on family support, she added.
Guppa, who is based in Brooklyn, New York, said that the typical first buyer on her market was in the early to mid -30s and often comes from households with two income that earn six numbers.
“But even then the affordability gap is huge,” she said. “Many have rented, built up savings or received help from the family for years. Some are technical, legal or financed specialists who are looking for stability before starting a family. It is less about age and more about access to capital.”
On the opposite coast, the first -time buyers of homes with similar problems are located. There is a “real non -agreement” between what people have saved and what houses actually cost. Tami PardeeFounder and CEO of West Los Angeles based Pardee propertiestold Assets.
The median condominium price in West LA is around 940,000 US dollars, which would bring monthly housing payments to more than 6,600 US dollars, whereby a down payment of 20%, mortgage interest is accepted near 7%, HOA fees and insurance. That is more than 2,200 US dollars above the medium rent, she said. The typical first buyer on your market is at the end of 20 to mid -30 and often comes from households with two income and earns low to six numbers in the middle.
“A village is just needing,” said Pardee. “For many young buyers, it feels unattainable and that can be really discouraging.”
How to prepare for buying your first house
As Pardee said, the purchase of your first house seems impossible in view of the number of factors that can be combated on today’s housing market. The key to achieving the so -called American Dream is planning, brokers and real estate experts agree.
Jeff LichtensteinCEO and broker at Echo fine properties – Palm Beach Gardens, tells Assets He saw younger people more – including his son – by going out less for meals and vacation. His son also lives at home and has “buckets with savings” with the aim of buying a house in 2027.
He also said that people will be more creative in the face of the challenges on the market. He saw how older generations exchanged their houses with younger family members instead of selling them immediately.
“With boomers en MA and life expectancy, some houses are passed on to live in instead of being sold,” said Lichtenstein.
While the loosening of mortgage interests and the increasing range of housing on starter houses and condominiums would certainly help, Guppa said that this may not be as likely as we hope. Your advice is to prepare early if you hope to become homeowners by working with a local agent and exploring first-time grants.
“Don’t be discouraged if the process needs time,” said Guppa. “Patience, planning and the right instructions make a long way in today’s market.”
