These factors have gained the housing market from many first-time home buyers, often younger generations like Gen Z and Millennials. In fact, for these buyers, the housing market is no longer able to bear it. Shrink to a long history.
According to NAR data, NAR data shared with others display wealth Tuesday. By 2024, this number has dropped to 1.14 million.
And, many real estate agents and real estate experts won’t expect this trend to change soon, especially if interest rates, inventory or wage growth won’t attract first-time home buyers.
“We see the reshaping of the ladder of the house.” Alexandra Guptaa real estate agent Corcoran Group,Tell wealth. The company is Shark Tank Celebrities, investors and real estate legends Barbara Corcoran.
“Some first-time buyers are turning to models of long-term rents and even living together because the idea of owning a home has become out of reach,” Gupta said, adding that others rely on family support.
Gupta, based in Brooklyn, New York, said the typical first-time home buyer in her market was in the early 1930s to mid-1930s, usually from dual-income families, earning six figures.
“But even then, the affordability gap was huge,” she said. “Many people have been renting a house, saving or getting help from their families for years. Some are seeking stable technical, legal or financial professionals before starting a family. That’s less than age, but more about access to capital.”
On the opposite coast, first-time home buyers face similar problems. There is a “real mismatch” between what people save and the houses they actually spend, Tami PardeeFounder and CEO of West Los Angeles Pardee Properties,Tell wealth.
The median apartment price in West Los Angeles is about $940,000, which would bring monthly housing payments to over $6,600, assuming payments of 20%, mortgage rates close to 7%, HOA fees and insurance, she said. That’s $2,200 more than the median rent, she said. She said.
“It really needs a village right now,” Paddy said. “It feels out of reach for many young buyers, and it’s really frustrating.”
How to prepare to buy your first house
As Pardee said, buying your first home seems impossible given the number of factors to fight in today’s housing market. Brokers and real estate experts agree that the key to achieving what has long been called the American Dream is planning.
Jeff LichtensteinCEO and Broker Echo fine properties – Palm Beach Gardens, tell wealth He has seen young people (including their sons) avoid more by having less meals and vacations. His son also lives at home and owns a “save bucket” with the goal of buying a home in 2027.
He also said that given the challenges in the market, people are increasingly creative with housing solutions. He has seen older generations swap homes with younger members of their families instead of selling homes directly.
“With the huge life expectancy of the tide generation, some homes will start to be passed on to live rather than for sale,” Lichtenstein said.
Gupta said while lowering mortgage rates and increasing housing supply and apartments will certainly help. Her advice is if you want to be a homeowner by working with local agents and exploring first-time buyer grants, if you want to be a homeowner.
“Don’t be discouraged if the process takes time,” Gupta said. “In today’s market, patience, planning and proper guidance go a long way.”
