Starter homes are disappearing, the lock-in effect is in full swing, and the age of the first-time homebuyer has increased tremendously over the last 15 years. With all of this in mind, there is a question that seems to be top of mind for many individuals – is homeownership becoming something only the luxurious can afford?
In episode 13 of RiskWire: On the House, Senior Research Economist, Reena Agrawal, explores the idea that homeownership is becoming unattainable. Agrawal references average household incomes, affordability concerns, and the disappearance of the starter home as she comes to her conclusion on the matter.
Here are some key takeaways from the episode:
- In 2010, the average age of the first-time homebuyer was 30. Fast forward to 2025, and the average age is now 40, meaning individuals are delaying homeownership by over a decade.
- The starter home is beginning to disappear in the United States. Fewer affordable homes are being built and made available for first-time homebuyers, which also delays homeownership.
- There seems to be two separate housing markets in the United States currently. One housing market consisting of current homeowners with substantial home equity, while the other market consists of first-time buyers competing against homeowners with large accumulations of wealth.
Have you been questioning the attainability of homeownership? Watch episode 13 of RiskWire: On the House, today: Webcast & Interviews – RiskWire, powered by Veros
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