During the pandemic, millions of Americans broke into the housing market thanks to sub-3% mortgage rates. But as mortgage rates and home prices started to climb—and while wages remained relatively stagnant—achieving the American dream feels further out of reach than ever. Indeed, the average age of a first-time home buyer climbed to an all-time high of 40 years, according to the National Association of Realtors.
“The historically low share of first-time buyers underscores the real-world consequences of a housing market starved for affordable inventory,” Jessica Lautz, NAR deputy chief economist and vice president of research, said in a statement. “The share of first-time buyers in the market has contracted by 50% since 2007—right before the Great Recession.”
