Homeownership for many younger Americans isn’t just a dream. It has become a prominent desire, with many young people making poignant sacrifices to be able to afford a home — someday. While owning a home is a fundamental component of the American Dream, it’s one that may be out of reach for many individuals younger than 40, the median age of first-time homebuyers.
The median age of 40 is a lot higher than it used to be. First-time homebuyers make up only 21% of the housing market, meaning almost four-fifths of home purchases are made by people buying their second, third or fourth home, either as a residence or for investment income purposes. It’s a stark reality that’s the result of “a housing market starved for affordable inventory,” according to Jessica Lautz, vice president of research at the National Association of Realtors.
