First time home buyers in the U.S. 2020, by age group
Approximately 82 percent of Americans aged 22 to 30 who bought a home were first-home buyers, whereas only just under half of home buyers between 31 and 40 bought their first home in that year.
Gen Z and Millennial first-time buyers
It is no surprise that many Gen Z (born between 1996 and 2010) and Millennial (born between 1980 and 1995) home buyers are mostly first-time home buyers. These home buyers are in the early stages of their careers, or still studying in some cases, and often struggling to repay student debt, so they need to save for many years before they afford a down payment.
When do they sell?
These generations tend to stay in their first homes for several years, which means that the majority of home sellers are older than them. The share of income needed to afford a trade-up home is significantly lower than the money needed for a starter home. A trade-up home is a larger and more expensive home, which homeowners often buy after living in their starter home, or their first home, for several years. This progression generally happens when homeowners have climbed the career ladder and increased their incomes.
Gen Z and Millennial first-time buyers
It is no surprise that many Gen Z (born between 1996 and 2010) and Millennial (born between 1980 and 1995) home buyers are mostly first-time home buyers. These home buyers are in the early stages of their careers, or still studying in some cases, and often struggling to repay student debt, so they need to save for many years before they afford a down payment.
When do they sell?
These generations tend to stay in their first homes for several years, which means that the majority of home sellers are older than them. The share of income needed to afford a trade-up home is significantly lower than the money needed for a starter home. A trade-up home is a larger and more expensive home, which homeowners often buy after living in their starter home, or their first home, for several years. This progression generally happens when homeowners have climbed the career ladder and increased their incomes.
