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For many young Americans, buying a first home is now a dream deferred. The average first-time buyer is 38 years old, down from the historical range of 29 to 33, according to the National Association of Realtors.
“First-time buyers face high home prices, high mortgage interest rates, and limited inventory, making them a decade older with significantly higher incomes than previous generations of buyers,” said Jessica Lautz, deputy chief economist and vice president of research at NAR, in 2024 (1).
Meanwhile, existing homeowners use equity to secure their dream homes with cash or large down payments.
Younger buyers face several challenges.
Rising property values across the country make it difficult for those with limited savings or student debt to make down payments. Higher mortgage rates further increase monthly costs, leaving many out of the market. Affordable housing options are also scarce, as builders focus on luxury homes while sellers hold properties longer, reducing inventory and driving up prices.
Building a solid financial foundation is only the first step; Finding a good mortgage can be equally essential. Shopping around for rates can save you thousands of dollars over the life of your loan, and comparing multiple offers ensures you’re getting the best deal possible.
Improving your credit score, reducing debt, and saving strategically can ensure better loan terms and lower interest rates, making a home more attainable.
Next, it will be vital to address any financial obstacles that may stand in your way. If your priority is paying off your debt, speaking with a financial advisor may be helpful.
Finding the right advisor is easy with Advisor.com. Their platform connects you with licensed financial professionals in your area who can provide you with personalized guidance.
A professional advisor can also help you determine how many years you have left to invest before you retire and assess your comfort level with market fluctuations, two key factors in creating the right asset mix for your portfolio.
Through Advisor.com, you can schedule a free, no-obligation consultation to discuss your retirement goals and long-term financial plan.