In 2024, the share of first-time home buyers hit a historic low, with only 24% of buyers being first-timers, compared to 42% in 1995, due to high prices and mortgage rates. However, some, like Emma Kerr, are still achieving the American dream of homeownership by navigating the challenging market. Kerr, 25, decided to buy a house to stop paying rent and start a new life with her fiancé in Greenville, S.C. Despite high prices and competition, Kerr managed to find a suitable home below her budget of $300,000.
Successful first-time buyers in today’s market are older, with a median age of 38, compared to the 1980s. They have more time to save for down payments and pay off debts, earning higher salaries. These buyers are considered “elite” due to their financial assets and wealthier status. Younger buyers in their 20s are also entering the market with affordable options and budgeting strategies.
Kerr, who works in marketing in the construction industry, made about $63,000 a year at the time of purchase. She wanted a three-bedroom home with a big yard for her dog, paid $305,000, and kept monthly costs below $2,000. Kerr’s story exemplifies the challenges and successes of first-time home buyers in a competitive and expensive housing market. The share of first-time home buyers in 2024 fell to a historic low, per the National Association of Realtors. Kerr, a buyer, adjusted expectations while shopping with agent Reid. Kerr secured a conventional 30-year mortgage with a 10% down payment and a 6.45% interest rate. Kerr saved money gifted by grandparents.
Haile and Hunter Mayes, earning $155,000 yearly, purchased a $435,000 three-bedroom home in Mesa, Ariz., without an HOA. They wanted to start a family and avoid HOA restrictions. The Mayeses closed on the house in May with a 30-year mortgage, 3.5% down payment, and 6.2% interest rate.
Anna and Ryan Johnson bought a Middlesex County, Mass., condo for an undisclosed amount. The Johnsons toured 15 homes and made four offers before one was accepted. They closed on the house in late June with a 30-year mortgage, 6.75% interest rate, and 20% down payment. The share of first-time home buyers hit a historic low in 2024, per the National Association of Realtors. Ryan and Anna saved for their house by investing and living in a tax-friendly state. They shopped around for the best mortgage rate by talking to multiple lenders.
Read more at MarketWatch: Who can actually buy a house today? Meet the ‘elite’ buyers achieving the American dream.