submitted by the Prescott Area Association of REALTORS®
Owning your home is one of the greatest ways to build long-term, multi-generational wealth, the kind that you can pass on to your kids. Maybe your parents are passing that wealth onto you. But that isn’t always the case. In fact, you may be hearing about trends of fewer young people who aspire to be homeowners.
A recent study by the Urban Institute suggests that today fewer young adults are likely to become homeowners. Since 2010, even young adults with higher incomes are less inclined to buy their first house.
Does this sound like you? Someone you know? Your kids in their 20s who haven’t moved out yet? Concerns may come up like down payments, property taxes, insurance and mortgages. But regardless of what is happening in the economy, there is a pathway leading toward your first home.
It may seem daunting to look at the home prices and wonder if you’ll ever get there. A REALTOR® can help.
Consider these facts about who is buying homes today:
- First-time home buyers decreased to 24% of the market, while the median first-time buyer’s age increased to 38, according to the National Association of REALTORS®. This is not a discouragement but a recognition that you won’t get there overnight, however you will get there.
- 17% of buyers purchased a multigenerational home, mostly to care for aging parents or to save costs.
- Homeownership is for all demographics. 20% of recent buyers were single women and 18% were veterans and active-duty service members.
One skill that you as a future homeowner cannot do without is financial literacy. This is easier than you think, and you’re already doing it today while paying your monthly credit card, rent and utilities. Maybe you’re saving up for a new car. Or you are setting money aside to buy holiday presents and make travel plans to see family.
So what’s next? Get your monthly budget in order. This is a good idea whether you want to buy a house or not. To help, try Quicken or YNAB (You Need a Budget).
You will see after a few months of budgeting that there are extra dollars laying around here and there, and they can be pushed into budget categories like down payment or summer vacation or even planning our wedding.
