These numbers should give us all pause about the future of the housing market–both locally and nationally.
The reality is that, between high rent prices, high student-loan debt burdens, and the inevitable Federal Reserve interest rate hike, millennial home buyers have some serious hurdles to clear before they can even think about buying a home.
With younger buyers missing out on building equity buy buying now, it will hamper their ability to upgrade as their families grow and then sell as they move toward retirement. This is a trend that I worry about for my own kids.
According to the NAR survey, the average first-time-buyer household earned roughly $69,400, they purchased a 1,620-square-foot home costing around $170,000. The median repeat buyer purchased a 2,020-square-foot home costing $246,000.If prices continue to rise, it will only exacerbate the problem. Check out the NAR’s take on this trend in the video below.