How Has the First Time Home Buyer Profile Changed Over Time?admin / 0 Comments /
If asked to describe the profile of the average “first-time home buyer”, many Americans may use descriptions such as young, newly married, young children or children on the way. There is an idea that many have about who these would-be buyers are, what stage of life they are in and it appears it is an out-of-date perception.
Researcher at Harvard completed a study of first time home buyers over a span of 20 years, from 1997-2017 and found some significant changes in the demographics of first time home buyers over those years. In the paper detailing the study findings, it was stated, “While discussions of first-time home buying often tie home ownership entry to life-stage changes like marriage and the birth of a first child, a growing share of first-time home buyers do not fit this profile”.
An article published by The Wire summarizes the most telling comparison of how many first-buyers were unmarried in 1997, which was 23% of all first time home buyers, compared to a 12% increase by the time 2017 rolled around. That year, 35% of first time home buyers had never been married. Married home buyers made up 61% of the first time home buyers in 1997, but only 52% of first-time home buyers in 2017 were married.
What hasn’t changed much in the span of the study, the age of first time home buyers which decreased from 34 to 32 between 1997 and 2017. The findings reveal facts that, “suggest that there may be a fundamental shift in the way that young households are approaching first-time home purchases, such as an increased willingness to purchase homes individually or with unmarried partners”.
Read the entire article.