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August 2017   Volume 43, Number 8      
 

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3 Million First-time Homebuyers Shut Out of Home Market in Past Decade

In the past decade, three million would-be first-time homebuyers have been shut out of purchasing a home. There were an average of 1.5 million first-time homebuyers per year in the last decade, according to a new report from Genworth Mortgage Insurance. That is significantly less than the historical average of 1.8 million a year. First-time homebuyers play an important part in the housing market, and their absence has caused a major drag on the entire economy.

During the housing boom years leading up to 2007, the homeownership rate in the United States soared. However, it all came to a screeching halt during the years following the Great Recession. In April, the rate stood at 63.6%, according to the government.

From 2014-2016, first-time homebuyers accounted for 85% of the housing market’s expansion, according to the report. In 2016, there were two million first-time buyers, an increase of 15% from the year before.

“The homeownership rate will stage a recovery over the next few years,” said Tian Liu, chief economist at Genworth Mortgage Insurance. “I think we will see a reversion to a historic mean of around two-thirds of American families owning their homes. I think that is a very exciting time.”

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In this issue:

The 10 Fastest Growing Cities in the U.S.

3 Million First-time Homebuyers Shut Out of Home Market in Past Decade

America’s Hottest Real Estate Markets: May 2017

Home Prices Are Increasing, But Mortgages Are Still Cheap

Fed Announces Third Rate Hike in 7 Months

Industrial Real Estate Development Reaches 10 Year High

Real Estate Companies Are Moving to the Cloud

Mortgage Applications Down 12 Percent Since 2016

Why More Millemnials Are Finally Buying Real Estate

Why More Real Estate Firms Are Now Offering Mortgages



 


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