By Mary Prenon
Maria Thomas and Tabor Loynd are among the millions of young Americans who question if they will ever be able to buy a home. Thomas, 29, is currently renting an apartment in the Bronx, New York, and Loynd, 23, lives in Yarmouth, Cape Cod, Massachusetts. Both are working full-time jobs and trying to save as much as they can, but they may or may not plan to become homeowners any time soon.
Their stories are not surprising, as mortgage interest rates rise and home prices remain out of reach for many. Nationwide, the share of first-time home buyers dropped to a record low of just 26 percent–down from 34 percent last year and a peak of 50 percent in 2010.
A Nov. 4 outlook from the National Association of Realtors (NAR) also indicates the average age of first-time buyers has increased to 36 years–up from 33 years in 2021. This is the oldest age point NAR has recorded since 1981. The average age of repeat buyers also hit a new high, increasing to 59 from 56 in 2021.
“This isn’t that surprising considering the higher mortgage interest rates, continued high home prices, a low share of inventory and inflation,” Brandi Snowden, director of member and consumer survey research at NAR, told The Epoch Times. “A lot of younger people are now opting to live at home with their parents longer or are living with roommates or other family members.”
Thomas currently lives with a partner, and at one point was considering buying a condo. “I ultimately decided against it because I wasn’t sure if I was ready to make a commitment to stay in New York,” she said. “Plus, there are so many moving hands to purchasing a home or condo and I hear so many horror stories. That also makes me hesitate about such a serious purchase.”
Loynd is living at home with his father and saving to buy a home in southwest Virginia, a much more affordable area of the country. Like the New York metro area, home prices in Cape Cod have skyrocketed over the past few years. “I want to enjoy having peace and quiet with enough land to be able to work on my truck or do some other projects without having to deal with neighbors,” he said.
According to the NAR outlook, just 2 percent of Gen Z (young adults from 18 to 25 years old) are part of the home-buying public. Younger Millennials (ages 26 to 34) comprise 18 percent of buyers, while older Millennials (ages 35 to 41) are in the 25 percent range. Gen X (ages 42 to 57) represents 24 percent of buyers, but that percentage drops to 17 for younger Boomers (ages 58 to 67) and just 12 percent for older Boomers (ages 68 to 76). Conversely, those two groups show 23 and 19 percent respectively for the home-selling population.
Gen Xers were also found to have the highest household incomes of any generation at $125,000 in 2020, followed by older Millennials with a median household income of $110,300. “The household composition is also changing,” added Snowden. “About 60 percent of recent buyers were married couples, 19 percent single females, 9 percent single males and 9 percent unmarried couples.”
The highest percent of single female buyers were among the Silent Generation (ages 77 to 94), while the highest share of unmarried couples were younger Millennials at 21 percent.
Chances of Homeownership Are Fading
Snowden suggested that today’s high rents nationally may be preventing younger people from saving enough money for a down payment on a home. Rent.com reports the current median national rental for a one-bedroom apartment is $2,002.
For many young adults today, the prospects of home ownership are fleeting. “A lot of them are starting out with huge college loans or other debt and many have given up on the American dream,” Clara Chow, co-founder and chief revenue officer at Pinata, a real estate technology startup, told The Epoch Times. “It can be demoralizing–like they’re in this horrible waiting room and not going anywhere.”
Pinata’s free app allows renters to reap rewards on everyday needs with gift cards for gas, groceries, restaurants, and more, plus build their credit rating at the same time.
Quoting a recent report from Apartment List, Chow said that one in five young adults have given up on owning a home since the average time to save for a typical 20 percent down payment is a decade. “With changes in the economy, there’s a lot more freelance work with no medical benefits,” added Chow. “Add to that the hyperinflation, and you can see a trend leading to a real gap in financial health.”
According to the Housing Vacancy Survey (pdf), 44 million households are currently renting, as opposed to buying homes. And as of October, 60 percent of Americans, were living paycheck to paycheck, according to a LendingClub survey.
On a positive note, admits Chow, the advantages of renting include more flexibility in changing living locations and saving money on those hidden homeowner expenses like roof replacement, plumping costs, landscaping, high utilities, and general maintenance. “Gen Z and Younger Millennials are very mobile generations, and they like to go out, travel, and relocate, if need be,” she explained. “They’re not bound to their locations by a home. They can be digital nomads.”
Thomas agrees. “As an unmarried adult with no kids, I can pick up and move anywhere at any time for any reason,” she said. “You also have to consider the market, the time spent house hunting, and if you’ll make a profit. If you do buy, then you have to hope that your purchase is good enough for you and your future.”
Loynd is also unmarried with no children and hopes that a more rural area in Virginia will offer homes that are more in his price range. “I have a couple of friends there and it seems like a great place to live,” he said.
NAR did indicate that the median distance buyers moved from their previous homes more than tripled from the distance in the previous four years, from 15 miles in 2018 to 2021 to 50 miles this year. The shares of homes purchased in small towns and rural areas rose from 19 to 29 percent just in the last year. “Now that more people have the option of working remotely, this could be a continuing trend as people seek more affordable areas to live,” added Snowden.
The median number of weeks that buyers searched for a home has also increased from 8 to 10 weeks. However, buyers are still typically purchasing homes for 100 percent of the asking price. Over 28 percent are still paying more than the asking price. The typical down payment for first-time buyers is just six percent.
Chow believes the future may hold a different type of American dream with more people opting to rent. Thousands of today’s rentals also include single-family homes that investors have purchased as income-producing units. “I think we’re going to see future generations embrace the renter nation,” she said.
For Thomas, this trend is showing her the direction of where the market could be headed. “It seems like big corporations want you to rent instead of own and if there are fewer single-family homes for sale, the more valuable they will become,” she said. “Maybe it won’t be a bad idea to purchase a home now and potentially sell the property for profit in the future.”
Affiliate News Feeds
- Washington Examiner
- The Federalist
- The Epoch Times
- The Guardian
- The Gateway Pundit
- Judicial Watch
By Naveen Athrappully NASA announced on Tuesday that it intends to cancel the development of its GeoCarb mission, which was proposed to be a low-cost satellite aimed at monitoring greenhouse gas… [...]
By Bryan Jung The rate of job cuts in the United States soared 127 percent in November, amid a wave of layoffs in the tech industry. The American employers announced 76,835 cuts… [...]
By Jennifer Margulis and Joe Wang What medicine should you take? How should you treat any given illness? What preventative measures are most effective for you? Which vaccines do you need? These… [...]
A former professor at the University of California San Diego said she gave all of her students "A" grades and no homework in a recently unearthed video. [...]
A key Senate vote over whether to provide paid sick leave for rail workers is highlighting a divide within the GOP, a party that has increasingly tried to position itself… [...]
Transmission infrastructure will need to double or triple to accommodate the growth. [...]
Anyone still wearing a face mask to protect himself from Covid probably has no intention of ever shedding it now. [...]
Anyone who actually watched 'Wednesday' can see that the 'racism' accusations are ridiculous and performative. [...]
Chuck DeVore's historical fiction book 'Crisis of the House Never United: A Novel of Early America' demonstrates not only why procedure and patience matter, but also the genius of the… [...]
The head of the largest oil and natural gas trade association warned that failure to replenish the U.S. Strategic Petroleum Reserve (SPR) could trigger another oil crisis in the coming… [...]
This episode will premiere on Friday, Dec. 2 at 8 p.m. ET. In this episode of Kash’s Corner, we discuss the impending release of the Jan. 6 committee’s final report.… [...]
New York’s quest to replace the troubled Rikers Island jail complex with smaller facilities across the five boroughs could lead to either hazardous overcrowding or the release of dangerous detainees,… [...]
Health Security Agency issues rare alert over rise in cases, urging people to seek immediate medical help if they see symptomsQ&A: what are the symptoms and how can strep A… [...]
Exclusive: Labour says ministers have been told repeatedly that people with prepayment meters are not getting enough supportCase studies: ‘I can’t afford to heat my son’s room’Up to half a… [...]
Joe Biden’s gender fluid “pup handler” DOE employee Sam Brinton was charged with felony theft for stealing a woman’s luggage last month at MSP airport in Minnesota. According to Alpha… [...]
By Wayne Allyn Root Let me start with a disclaimer. I’m a Jew. Not just any Jew. Ancestery.com tested my DNA and reported I’m 99.9% Eastern European Jewish ancestry. That’s… [...]
The Department of Homeland Security has issued a National Terrorism Advisory System Bulletin in advance of the holidays. The United States remains in a heightened threat environment. Lone offenders and… [...]
From Fox News: The Secret Service will not say why they changed their position regarding a government watchdog’s records request into Hunter Biden’s gun investigation records. Government watchdog Judicial Watch… [...]
(Washington, DC) – Judicial Watch announced today that the United States Secret Service has repeatedly changed its position about whether it is in possession of records related to the investigation… [...]
The Biden administration is giving a nonprofit partially funded by leftwing billionaire George Soros’s Open Society Foundations (OSF) $12 million to strengthen labor rights and empower workers in three Latin… [...]