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Housing market dominated by white, older, richer homebuyers

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First-time homebuyers have fallen to record low rates, struggling to compete in a U.S. housing market flooded with older, white, and affluent buyers.

according to it National Association of Realtors Annual Profile of Home Buyers and Sellers Released Thursday.

First-time homebuyers hit record lows

Percentage of first-time homebuyers navigating homes today housing market dropped to just 26%. This is the lowest share in more than 40 years since the National Association of Realtors published the report.

This is down significantly from last year’s 34% and down significantly from the 2010 peak of 50%.

“Given the combination of historically low inventories in the housing market, it is not surprising that the share of first-time buyers has shrunk to its lowest levels on record. high housing prices and rapidly rising interest ratessaid Jessica Lautz, vice president of demographics and behavioral insights for the National Association of Realtors.

White homebuyers dominate the housing market

White buyers make up 88% of all homebuyers, up from 82% a year ago. This number vastly outstrips buyers of other races. According to the report, only 8% of buyers were Hispanic American, 3% were Black, and 2% were Asian American.

While the share of whites and Hispanic Americans increased from a year ago, the share of blacks and Asian Americans declined, both down from 6% last year.

“Although the affordability and limited availability of housing has impacted the purchasing power of all buyers, blacks and Asian Americans have felt the greatest impact.

“Conversely, white and Hispanic American buyer stocks rose. We are making repeat purchases with housing assets so that we can trade in them.”

Aging homebuyers

The typical first-time buyer age is 36, up from 33 a year ago. Additionally, the age of a typical repeat customer has risen from last year when he was 56 to when he was 59.

“Both ages are the highest in the history of the dataset. The median expected home tenure for first-time buyers was 18 years, the highest on record and up from 10 years in 2021,” the report said. said.

The report also Buyer with existing assets Whether it’s stocks or inheritance, it enjoys a clear edge in today’s market.

“People who have home equity have cards and are doing very well in the current real estate market,” Lautz said. “First-time buyers are aging as a result of saving for long periods of time for a down payment or relying on intergenerational wealth transfers to own a home.”

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