MCLENNAN COUNTY, Texas (KXXV) — First-time homebuyers drop to a record low of 21% as the average buyer age reaches 40. Wages not keeping pace with housing costs price out young Americans.
- First-time homebuyers now represent just 21% of all home purchases, marking a historic low in homeownership accessibility
- The average age of first-time homebuyers has climbed to 40 years old, compared to late 20s in the 1980s.
- The core issue isn't rising home prices but wages failing to keep pace with housing costs, creating an affordability crisis.
- Real estate professionals suggest early planning, budgeting, and consulting with professionals as key steps for prospective buyers.
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BROADCAST TRANSCRIPT:
The dream of homeownership is becoming increasingly elusive for young Americans, with first-time homebuyers now representing just 21% of all home purchases — a record low that highlights a growing affordability crisis.
The average age of first-time homebuyers has also climbed to 40 years old, a dramatic shift from the 1980s when typical first-time buyers were in their late 20s.
"Being 23 years old and trying to find a house, it's pretty impossible right now," said Everett Sadler, a Waco resident struggling to save for a home purchase.
After covering rent, groceries and other essential expenses, Sadler finds little room in his budget for homeownership goals.
"So by the time I get done with my check, I have just a little bit left just to make sure I can make it through the rest of the week," Sadler said.
The core issue isn't necessarily that home prices are skyrocketing, but rather that wages aren't keeping pace with housing costs, according to Haus Realty broker, and owner Cory Duncan.
"I think the core issue that we're looking at is not in an absolute sense that the home prices are increasing, but that incomes are not increasing at the same pace," Duncan said.
This generational shift has created stark differences in homeownership opportunities compared to previous decades.
"My parents at 23 years old were able to get a house, and I would say not have as many obstacles as I do now," Sadler said.
Duncan explained that while home values and prices remain relatively stable, the fundamental challenge lies in affordability rather than market dynamics.
"The simple truth is that sellers are not going to take a lower price in the interest of making homes more affordable for the greater good," Duncan said.
For those hoping to eventually purchase a home, Duncan recommends beginning the planning process early through budgeting and consulting with real estate professionals to understand available options.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
