The share of first of first-time home buyers has dropped to a new low, according to the National Association of Realtors just-released Profile of Home Buyers and Sellers.
The report, which has been issued annually since 1981, provides a comprehensive view of the preferences of both buyers and sellers, noting that first-time buyers currently make up only 26% of the market, down from 34% in 2021.
In a statement, Jessica Lautz, vice-president of demographics and behavioral insights for the NAR, said, “It’s not surprising that the share of first-time buyers shrank to the lowest level ever recorded, given the housing market’s combination of historically low inventory, persistently high home prices and rapidly escalating interest rates.”
Lautz added that in today’s market, “those who have housing equity hold the cards and they’ve fared very well in the current real estate market.”
The report additionally noted that the share of buyers who purchased homes in small towns and rural areas, at 29% and 19% respectively, were at the highest levels ever recorded. At the same time, home purchases in suburban and urban areas, at 39% and 10% respectively, had declined since late 2021.
By Garry Boulard
