"Homeownership used to be a milestone of adulthood for Americans, but for Gen Z, the financial goalposts keep moving further away. While boomers were able to buy their first homes in cash, the average age of first-time home ownership has now jumped to a record of 40 years old, with high mortgage rates and soaring prices to blame, according to the National Association of Realtors."
"Today, the median price of an existing home is $415,200, up more than 50% since 2019. Meanwhile, mortgage rates are roughly twice as high as they were in late 2021. When boomers bought their first homes in 1981, the median home price was just $68,900-though mortgage rates averaged nearly 16 percent at that time. In 1981, the typical monthly mortgage payment went from around $1,100 to $2,650. Today, the average mortgage payment is around $2,067."
"Gen Z ranges in age from 13 to 28-meaning even the oldest members are still a decade younger than the median first-time homebuyer, making homebuying a midlife achievement. This may be because, as young buyers scrape together down payments, boomers are sitting on $82 trillion in wealth-more than twice what Gen X has and four times as much as millennials."
Average age of first-time homeownership has risen to 40, up from 33 four years ago and 29 in 1981. Median existing home price is $415,200, up more than 50% since 2019. Mortgage rates are roughly double late-2021 levels, raising typical payments; the current average mortgage payment is about $2,067. Boomers are estimated to hold $82 trillion in overall wealth and up to $19 trillion in home-equity wealth, creating a significant wealth gap that hinders younger buyers' ability to save down payments and build equity. Gen Z still regards homeownership as an important lifetime goal despite affordability headwinds.
Read at Fortune
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