The share of home buyers who were buying for the first time used to hover around 40 percent. That was the long-term norm. It began falling after 2008 but generally remained above 30 percent until more recently. With affordability conditions pushing buyers’ budgets, first-time home buyers have had a harder time getting into the market over the past few years. In fact, the share of first-time home buyers hit a record low of 21 percent last year, according to the National Association of Realtors. This year, the NAR’s Profile of Home Buyers and Sellers found it bumped up 1 percent to 22 percent of all buyers. Jessica Lautz, NAR’s deputy chief economist and vice president of research, says entry-level buyers are facing hurdles. “Affordability remains the biggest hurdle for first-time buyers,” Lautz said. “The share of first-time buyers is still about half the historical norm of 40 percent seen before 2008, and those saving on their own continue to face high rent, student debt, and a shortage of homes they can afford.” As a result, first-time buyers have gotten older, with this year’s report showing the median age of first timers at an all-time high of 40 years old. (source)
