Prospective first-time buyers in recent years have had to navigate several obstacles on their path to homeownership, including higher rents and home prices, tight inventory conditions and repaying student loan debt.
These impediments are a big reason why first-timers were only 34 percent of all transactions in the National Association of Realtors®’ 2017 Profile of Home Buyers and Sellers, which is far below the long-term historical average of 39 percent since the survey debuted in 1981.
Amidst these ongoing supply and affordability challenges, here is the typical makeup of a successful first-time buyer:
- Age – 32 years old
- Household income – $75,000
- Cost of home purchased – $190,000
- Down payment amount – 5 percent
- Student loan debt – $29,000
- Type and location of home purchased – Single-family home in a suburban area