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First Time Homebuyer Statistics, Tips for 2024
A first-time homebuyer is an exciting position to be in. It provides a wide range of opportunities to build the financial stability you want and need. However, to do so, you need to understand first-time homebuyers’ opportunities well.
70% of Younger Millennials and 46% of Older Millennials were first-time homebuyers in 2023. That is more than any other age group. (NAR)
21% of Gen Xers were first-time homebuyers in 2023. (NAR)
The median age for a first-time homebuyer in 2023 was 35. That is down from 36 in the year before (NAR).
About 49% of Black and African American homebuyers were first-time buyers in 2023. (NAR)
A typical down payment on a first-time home purchase in 2023 was 8%. (Bankrate) though some loan programs allow for as much as just 3% down.
60% of first-time homebuyers in 2023 stated that their desire to own their own home was the primary reason for purchasing. (NAR)
61% of first-time homebuyers purchased their home with their partner or spouse according to Opendoor.
53% of those who were first-time homebuyers in 2023 had to put off their purchase due to financial reasons (Opendoor).
88% of first-time homebuyers had to make financial compromises to afford their first home, with 43% paying more than they originally budgeted to pay to buy a home. (Opendoor)
44% of first-time homebuyers reported that they wanted to stop renting, which drove them to purchase a home, while 43% said they did so for more space, and 41% reported they did so as an investment opportunity. (Opendoor)
Just 59% of first-time homebuyers in 2023 were married couples. That is the lowest rate since 2010. (Opendoor)
Military veterans made up 16% of first-time homebuyer purchases (NAR)
3 out of every 4 first-time homebuyers purchased their home with someone else, reflective of the difficulty of purchase due to high interest rates and home prices. (Opendoor)
Tips on Buying Home as a 1st Time Homebuyer
Buying a home as a first-time homebuyer can be more complex for a number of reasons. It often means that the homebuyer must have a sizable down payment, qualify for a loan, and meet other financial obligations.
Is It Harder to Buy a Home as a First Time Homebuyer?
It could be considered harder to purchase a home if this is the first time you are applying because of a lack of insight into the process. However, with numerous home-buying programs, down payment assistance programs, and additional resources available, it may be easier to purchase a home than ever.
A number of exceptional resources exist to help make home-buying more affordable for the first time. That includes:
The US Department of Housing and Urban Development offers a number of down payment assistance programs and resources for each state. Click on your state’s name to find a specific list of all of the programs noted in your state.
Benefits of Home-buying as a 1st Time Homebuyer
Purchasing a home for the first time provides a wide range of benefits for families and individuals. Some of the key benefits, as noted by REALTOR Magazine, include:
Tax benefits include a deduction on your federal tax return.
Appreciation in home values builds equity, which is a very affordable way to borrow money if you need to do so in the future.
Homes tend to grow in value over the long term, providing a stable investment strategy for many.
Homeownership provides you with the freedom to enjoy a home that fits your needs and personality.
You can likely sell your home down the road for more than you paid, depending on the circumstances.
For all of these reasons, it’s worth taking a closer look at becoming a first-time home buyer.
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