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SEATTLE , /PRNewswire/ — Half of all home buyers are purchasing their first home, the highest share that Zillow has ever recorded. Zillow’s 2023 Individual Casing Styles Report finds that first-time buyers now make up 50% of all home buyers, up from 45% last year and a meaningful jump from 37% in 2021. The share of first-time buyers likely hasn’t been this high since around 2010, when there was a first-time home buyer tax credit.
First-time buyers are making gains relative to repeat buyers. Zillow browse finds a vast majority of homeowners with mortgages have locked in a rate below 5%, and are almost half as likely to consider moving. It’s true that first-time buyers make up a larger piece of a smaller pie, as house sales and inventory shrink. However, this significant rise in the share of first-time buyers helps explain what’s driving demand and keeping upward pressure on the rates in a market with mortgage rates surpassing 7%.
“High mortgage rates and a shortage of inventory is keeping would-be repeat buyers in their current homes,” said Zillow senior population scientist Manny Garcia . “A greater relative share of first-time buyers is filling the gap, and they’re competing against each other for the limited number of reasonable beginner homes on the market.”
Affordability is the greatest hurdle for first-time home buyers. It now takes nearly a dozen decades for a typical first-time buyer to save up for a down payment, compared to nine years prior to the pandemic. Leggi tutto “First-big date homeownership surges: 50 % of all the homebuyers make their first pick”
