The Washington Post (WP) reported on the 13th (local time), “American grandfathers are buying houses, pushing out grandchildren who are struggling to buy their first homes.” As the number of homes for sale in the U.S. housing market has recently decreased, it has become more difficult for young buyers who want to buy their first home to be crowded out by the older generation.
Citing a report from the National Association of Realtors (NAR), WP said that among those who bought a home this year, the proportion of first-time homebuyers decreased by 32%. The remaining 68% of people who bought a house this year are those who own multiple homes or sold the real estate they already owned and purchased another house. WP explained that in the first survey conducted in 1981, the proportion of first-time homebuyers was higher at 38%.
According to the report, the age of purchasing a first home has also been delayed. Until 2015, the median age (median) of purchasing a home for the first time was 31, but this year it was delayed by about 4 years to 35.
Among people who have purchased a home in the past, the median age of those who purchased another home this year also changed from 36 in 1981 to 58 this year. It has been delayed by 22 years in about 40 years.
The background for this phenomenon is the decline in the amount of real estate for sale in the U.S. this year and the wealth status of the baby boomer generation, which has ample retirement funds, unlike the younger generation who are burdened with student loans.
“There are not many properties for sale, so if multiple offers are received for a property, cash buyers will have an advantage over the competition,” said Jessica Lautz, NAR’s chief economist. Only older people who already own real estate have the ability to sell their existing home to raise cash to buy a new home. According to NAR, the median age of home sellers this year was 60. Tina Doyle, a real estate agent in Michigan, also added, “Demand for older people who have already moved their children out of the country does not need a large house, so their demand overlaps with that of young people.”
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.