Millennials Face Housing Market Déjà Vu as Unaffordability Plagues First-Time Buyers in Their 30s

Millennials are facing a housing market reminiscent of the challenges their parents experienced in the 1980s. Despite high mortgage rates and soaring home prices, first-time buyers in their 30s are flooding into the market, making up 32% of all homebuyers. The National Association of Realtors (NAR) reports that the typical age for first-time homebuyers is 35, placing them squarely in the millennial category. However, the market remains difficult to enter due to limited inventory, and lower-income buyers are being priced out. The median household income for homebuyers has jumped almost 20% in the past year to $107,000, making homeownership increasingly unaffordable for younger generations. Many first-time buyers are resorting to borrowing from their financial assets to enter the market, and some are driven by a fear of missing out (FOMO) on even higher prices and mortgage rates in the future.