If you’ve been contemplating diving into the housing market for the first time, it’s easy to be swayed by doom-and-gloom narratives or generational debates that paint a discouraging picture of homeownership. However, the truth tells a different story. Despite the ever-changing landscape, ordinary individuals are still realizing their homeownership dreams—and there’s a good chance you can too.
Who’s Buying Their First Home Today? Rewind to 1981, the dawn of the Millennial generation, when the typical first-time homebuyer was 29 years old and represented 44% of total home sales. Fast forward to today, Millennials, those born between 1981 and 1996, now lead as the primary demographic among first-time buyers. The average age for making that initial home purchase has climbed to 35. In 2023, roughly one-third (32%) of all homebuyers were first-timers, with 46% aged between 33 and 42.
Financial Insights: In 2023, the average annual household income for first-time buyers ranged from $86,000 to $103,000—well above the median U.S. household income of about $75,000. Most first-time purchasers are putting down 8% of the sales price, largely funded from their savings. Among all homebuyers, 30-35% are managing student loan debts averaging between $30K and $40K. To gather funds for a home, many reported cutting back on discretionary spending like entertainment.
How Are First-Timers Financing? A significant majority of first-time buyers are securing their home purchases by financing 75% or more of the price through fixed-rate FHA or Conventional home mortgage loans. Interestingly, most buyers found the mortgage process smoother and easier than they anticipated.
What Are They Buying? Before sealing the deal, the average buyer toured about five homes over ten weeks, with 87% opting for resale homes. The typical starter home today features a three-bedroom, two-bathroom layout, spans approximately 1700 square feet, and is usually found in suburban areas. Most of these homes were originally built around 1978, with buyers planning to reside in their new homes for 10 to 15 years.
Getting Started: Wondering how to embark on your homeownership journey? A vital step is connecting with an experienced real estate professional. At Jones Hollow Realty Group, our experts simplify the complexities of buying a home, assist with the necessary paperwork, and stand by your side during negotiations. Reach out to a Jones Hollow real estate professional today and take the first step toward owning your dream home.