Housing affordability continues to be a challenge in the U.S. Several r🍎ecently released data points are just the latest illustrations.

This chart, based on National Association of Realtors data, shows that homebuyers have been getting older for years—but their current levels are at multi-decade highs. Meanwhile, the median age of homebuyers reached an all-time-high of 56 in 2024.

Other data from the NAR, meanwhile, showed that fewer than a quarter of home purchases in 2024 were made by first-time homebuyers, the lowest levels on record.

“The number of first-time homebuyers is way down, and the median age of all homebuyers is way up. You have to be older and wealthier just to afford a home now,” Robert Frick, corporate economist at Navy Federal Credit Union, said.

Home Prices Out of Whack With Incomes

Home prices have been 澳洲幸运5官方开奖结果体彩网:steadily rising, gaining 澳洲幸运5官方开奖结果体彩网:a further 3.9% in December. 澳洲幸运5官方开奖结果体彩网:Mortgage rates have remained at nearly 7%, ad💧ding to borrowing costs. 

Incomes haven't kept up with housing price hikes. The latest data from the Atlanta Federal Reserve shows that to purchase a median-priced U.S. home at $390,333 in January, buyers would need an annual income of $124,150. That’s well above the actual median annual income of $79,223.

Without a significant drop in mortgageꦍ rates and an increase in housing inventory, housing prices are likely to continue to be a barrier of entry for young people into the housing market.

“The whole starter home ladder to home equity has been yanked away. Unt𝄹il we get back to that point, younger generations are having to rely on winning the lottery or generational wealth or working at hig- paying jobs just to afford any kind of home,” Frick said. “The whole situatio♏n is very contorted and unfair.”