Home Ownership Has Never Been Harder

Home Ownership

It seems that buying that first home has never been harder. Here are a few interesting data points:

-- The median age of a first-time homebuyer has risen to 38, up from 35 in 2023 and significantly older than the late-20's norm of the 1980's.

-- The median down payment for first-time home buyers is 9% and this is up to the highest point since 1997.

-- 25% of first time home buyers are getting help from family or friends for the down payment.

-- The average household income of first-time home buyers is about $97k, which is up about $26k from two years ago, reflecting how much more income is required to break into the housing market today.

Young people are being told to save for that first house as this gets them into the home ownership track rather than being lifetime renters. They are also told that they should be investing a portion of their income for their retirement or just for their future.

How do you reconcile saving for a home within your larger financial planning goals? How do you manage the tradeoffs between investing more and saving more for a down payment?