Approximately 75 percent of Americans aged 25 to 33 who bought a home were first-home buyers, whereas 44 percent of home buyers between 34 and 43 bought their first home in that year. Gen Z and Millennial first-time buyers It is no surprise that many Gen Z (18 to 24 years old) and Millennial (25 to 43 years old) home buyers are mostly first-time home buyers. These home buyers are in the early stages of their careers, or still studying in some cases, and often struggling to repay student debt, so they need to save for many years before they afford a down payment. When do they sell? These generations tend to stay in their first homes for several years, which means that the majority of home sellers are older than them. The share of income needed to afford a trade-up home is significantly lower than the money needed for a starter home. A trade-up home is a larger and more expensive home, which homeowners often buy after living in their starter home, or their first home, for several years. This progression generally happens when homeowners have climbed the career ladder and increased their incomes.

Among all home buyers in the United States in 2023, first time home buyers accounted for approximately 32 percent of the total. The share of first time home buyers among all home buyers in the United States has fluctuated significantly between 2003 and 2021 w2having had the highest share of first time home buyers of 50 percent.

Graph and download economic data for Consumer Unit Characteristics: Percent Homeowner by Age: from Age 25 to 34 (CXUHOMEOWNLB0403M) from 1990 to 2023 about consumer unit, age, homeownership, 25 years +, percent, and USA.

About 15 percent of homebuyers in the United States in 2022 had a median household income between 100,000 and 124,999 U.S dollars. This was the median income range with the largest share of homebuyers in the United States that year. Among them, 19 percent were between the age of 18 and 24 years old.

The homeownership rate was the highest among Americans in their early 70s and the lowest among people in their early 20s in 2023. In that year, approximately 81 percent of individuals aged 70 to 75 resided in a residence they owned, compared to approximately 23.6 percent among individuals under the age of 25. On average, 65.9 percent of Americans lived in an owner-occupied home. The homeownership rate was the highest in 2004 but has since declined.

The highest share of home buyers in the United States in 2023 across all age groups was married couples. Married couples made up at least 54 percent of home buyers in all age groups that year.

The majority of home buyers in the United States in 2023 across all age groups purchased a home between 1,501 and 2,500 square feet in size. 33 percent of the young millennials (25 to 33 years old) and 31 percent of the silent generation (78 to 98 years old) purchased a home about the same feet in size.

Existing Home Sales in the United States increased to 4260 Thousand in February from 4090 Thousand in January of 2025. This dataset provides the latest reported value for - United States Existing Home Sales - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The average sales price of new homes in the United States experienced a slight decrease in 2024, dropping to 512,2000 U.S. dollars from the peak of 521,500 U.S. dollars in 2022. This decline came after years of substantial price increases, with the average price surpassing 400,000 U.S. dollars for the first time in 2021. The recent cooling in the housing market reflects broader economic trends and changing consumer sentiment towards homeownership. Factors influencing home prices and affordability The rapid rise in home prices over the past few years has been driven by several factors, including historically low mortgage rates and increased demand during the COVID-19 pandemic. However, the market has since slowed down, with the number of home sales declining by over two million between 2021 and 2023. This decline can be attributed to rising mortgage rates and decreased affordability. The Housing Affordability Index hit a record low of 98.1 in 2023, indicating that the median-income family could no longer afford a median-priced home. Future outlook for the housing market Despite the recent cooling, experts forecast a potential recovery in the coming years. The Freddie Mac House Price Index showed a growth of 6.5 percent in 2023, which is still above the long-term average of 4.4 percent since 1990. However, homebuyer sentiment remains low across all age groups, with people aged 45 to 64 expressing the most pessimistic outlook. The median sales price of existing homes is expected to increase slightly until 2025, suggesting that affordability challenges may persist in the near future.

Graph and download economic data for Delinquency Rate on Single-Family Residential Mortgages, Booked in Domestic Offices, All Commercial Banks (DRSFRMACBS) from Q1 1991 to Q4 2024 about domestic offices, delinquencies, 1-unit structures, mortgage, family, residential, commercial, domestic, banks, depository institutions, rate, and USA.

The median sales price of an existing single-family home in the United States reached almost 389,300 U.S. dollars in 2023 – the highest price on record. The sales price has risen year-on-year since 2011, increasing by over 100,000 U.S. dollars between 2019 and 2023. Location, location, location Regional differences in the median sales prices of existing single-family homes were evident across the United States. The cheapest region is the Midwest; the most expensive region is the West. An existing home in the West cost over 100,000 U.S. dollars more than in the Midwest. Prices surge due to housing shortage A lack of properties on the market is one reason why the prices of existing single-family homes are rising across all regions of the United States. The shortage in housing comes despite increases in both the number of new single-family units being authorized by building permits and new single-family housing unit starts. Homebuyers in the United States will have to pay top dollar should they want a new single-family home.

The foreclosure rate in the United States has experienced significant fluctuations over the past two decades, reaching its peak in 2010 at 2.23 percent following the financial crisis. Since then, the rate has steadily declined, with a notable drop to 0.11 percent in 2021 due to government interventions during the COVID-19 pandemic. In 2024, the rate stood slightly higher at 0.23 percent but remained well below historical averages, indicating a relatively stable housing market. Impact of economic conditions on foreclosures The foreclosure rate is closely tied to broader economic trends and housing market conditions. During the aftermath of the 2008 financial crisis, the share of non-performing mortgage loans climbed significantly, with loans 90 to 180 days past due reaching 4.6 percent. Since then, the share of seriously delinquent loans has dropped notably, demonstrating a substantial improvement in mortgage performance. Among other things, the improved mortgage performance has to do with changes in the mortgage approval process. Homebuyers are subject to much stricter lending standards, such as higher credit score requirements. These changes ensure that borrowers can meet their payment obligations and are at a lower risk of defaulting and losing their home. Challenges for potential homebuyers Despite the low foreclosure rates, potential homebuyers face significant challenges in the current market. Homebuyer sentiment worsened substantially in 2021 and remained low across all age groups through 2024, with the 45 to 64 age group expressing the most negative outlook. Factors contributing to this sentiment include high housing costs and various financial obligations. For instance, in 2023, 52 percent of non-homeowners reported that student loan expenses hindered their ability to save for a down payment.

The homeownership rate in the United States rose slightly in 2022, reaching the highest figure since 2011. However, in the third quarter of 2024, the proportion of households occupied by owners declined to 65.6 percent. The U.S. homeownership rate was the highest in 2004 before the 2007-2009 recession hit and decimated the housing market. Homeownership since the recession The rate of homeownership in the U.S. fell in the lead up to the recession and continued to do so until 2016. In spite of this trend, the share of Americans who perceived homeownership as part of their personal American dream remained relatively stable. This suggests that the financial hardship caused by the recession led to the fall in homeownership, rather than a change in opinion about the importance of homeownership itself. What the future holds for homeownership Homeownership trends vary from generation to generation. Homeownership among Americans over 65 years old is declining, whereas most Millennial renters plan to buy a home in the near future. This suggests that homeownership will remain important in the future, as Millennials are forecast to head most households over the next two decades.

The number of new houses sold in the United States took a big hit during the financial crisis, dropping from a high of around 1.3 million houses sold in 2005 to a low of 306 thousand homes sold in 2011 – around a 76 percent decrease. While the economy has largely recovered since the crisis, consumers remained hesitant when it comes to buying homes. In 2020, demand for housing surged and house sales volumes spiked to 822,000. House prices on the rise Unsurprisingly, the median sales price of new homes continues to rise. In fact, many Americans found that they were more interested in buying a home as a result of the pandemic. What types of homes are Americans buying? Undoubtedly, detached single-family houses constitute the majority of home purchases in the U.S. Approximately 88 percent of older Millennials who bought a home in 2022 shared that they bought a detached single-family house. Regardless of the age group, the most popular location to purchase a home is in the suburbs or in a subdivision.

The primary reasons for purchasing a home in the United States in 2023 varied among home buyers. Approximately one in four homebuyers bought a home because they desired to have their own home. Having one's own home was mainly considered by millennial buyers during their home buying process.

The number of single-family homes listed for sale in the 50 largest metros in the United States in February 2024 ranged between 1,000 and 20,000. Houston, TX, which is the fifth-largest metropolitan area in the country, had the most active listings that month, totaling 20,326. New York, NY - the biggest metro in the country - had 19,981 active listings.

Metros with growing job opportunities naturally have higher housing shortages than other metros. Huntington-Ashland, WV-KY-OH and Akron, OH were the metros with the most acute housing need in the United States as of December 2023. For every new building permit, there were over 10 new jobs created during that period. The number of housing starts has increased in recent years, but in order for housing needs to be met, homes will need to be built in the metros where they are needed the most.

Portugal, Canada, and the United States were the countries with the highest house price to income ratio in 2023. In all three countries, the index exceeded 130 index points, while the average for all OECD countries stood at 117.5 index points. The index measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. An index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. How have house prices worldwide changed since the COVID-19 pandemic? House prices started to rise gradually after the global financial crisis (2007–2008), but this trend accelerated with the pandemic. The countries with advanced economies, which usually have mature housing markets, experienced stronger growth than countries with emerging economies. Real house price growth (accounting for inflation) peaked in 2022 and has since lost some of the gain. Although, many countries experienced a decline in house prices, the global house price index shows that property prices in 2023 were still substantially higher than before COVID-19. Renting vs. buying In the past, house prices have grown faster than rents. However, the home affordability has been declining notably, with a direct impact on rental prices. As people struggle to buy a property of their own, they often turn to rental accommodation. This has resulted in a growing demand for rental apartments and soaring rental prices.

In the presented European countries, the homeownership rate extended from 42 percent in Switzerland to as much as 96 percent in Albania. Countries with more mature rental markets, such as France, Germany, the UK and Switzerland, tended to have a lower homeownership rate compared to the frontier countries, such as Lithuania or Slovakia. The share of house owners among the population of all 27 European countries has remained relatively stable over the past few years. Average cost of housing Countries with lower homeownership rates tend to have higher house prices. In 2023, the average transaction price for a house was notably higher in Western and Northern Europe than in Eastern and Southern Europe. In Austria - one of the most expensive European countries to buy a new dwelling in - the average price was three times higher than in Greece. Looking at house price growth, however, the most expensive markets recorded slower house price growth compared to the mid-priced markets. Housing supply With population numbers rising across Europe, the need for affordable housing continues. In 2023, European countries completed between one and six housing units per 1,000 citizens, with Ireland, Poland, and Denmark responsible heading the ranking. One of the major challenges for supplying the market with more affordable homes is the rising construction costs. In 2021 and 2022, housing construction costs escalated dramatically due to soaring inflation, which has had a significant effect on new supply.

Texas, North Carolina, and Florida were the states with the highest number of mobile homes in the U.S. as of September 2023. Since 1994, the cumulative number of manufactured housing units shipped to Texas amounted to approximately 557,000. Texas was also home to the largest number of manufactured home production plants, with over 20 facilities operating in the state. What is the price of a mobile home? Because they are factory manufactured, mobile homes are considerably less expensive than regular homes. In 2022, a double-width mobile home cost about 157,000 U.S. dollars. While this may be more affordable than buying a new home, there are drawbacks to owning a mobile home. For example, unless the home buyer also owns the land, the mobile home is likely to depreciate over time. In contrast, regular homeowners can expect that if home prices and land prices grow, their property will go up in value. The need for affordable housing With house prices and mortgage rates rising, while housing inventory remains limited, it has become increasingly difficult for prospective homebuyers to buy a home. To address this issue, the Biden-Harris administration released a housing supply action plan aiming to close the housing supply gap in the next five years. Within the scope of the plan are policies that encourage state and local zoning and land-use laws, piloting new financing for housing production and preservation, and preserving the availability of affordable housing for owner-occupants.