2022 first-time homebuyer statistics
First-time homebuyers are one of your top market groups.
At Dataman Group Direct, we can certainly create the perfect first-time homebuyer list for you. The statistics listed below will help you craft your message, visuals and your offer to them.
First-time homebuyer demographics:
- In 2021, 34 percent of homebuyers were first-time homebuyers. This was an increase from 31 percent in 2020.
- The typical age of a first-time homebuyer is 33 years old.
- Sixty-five percent of first-time homebuyers are driven primarily by a desire to own their own home.
- Since 2018, the average down payment for first-time homebuyers has consistently ranged between 6 percent and 7 percent.
- In 2021, 28 percent of first-time homebuyers applied a gift or loan from family or friends toward their down payment.
- Among unmarried homebuyers (which is 9 percent of all homebuyers), 21 percent are younger millennials (age 23 to 31)
- Fifty-one percent of older millennials have at least one minor child living with them.
- Sixty-six percent of first-time homebuyers are white. 14 percent are Hispanic, 11 percent are Asian American and 9 percent are Black.
Homeownership is worth a sacrifice
- Many home buyers age 23 to 41 made sacrifices to purchase a home. The most common was to cut spending on “luxury or non-essential items.”
- Of home buyers age 23 to 41, the most common reason for a mortgage denial was an insufficient debt-to-income (DTI) ratio. That was followed by a low credit score.
- Twenty-nine percent of first-time homebuyers cite “saving for a down payment” as the most challenging part of the homebuying process.
- Just 11 percent of homebuyers age 23 to 31 and another 11 percent age 32 to 41 contacted a bank or mortgage lender as the first step in the homebuying process. More often, the first step for these groups was to search for listings online.
- Of homebuyers age 23 to 31 (younger millennials), 49 percent report student loan debt hinders their ability to save for a home. The same is true for 44 percent of homebuyers age 32 to 41 (older millennials).
- Only 8 percent of homebuyers age 23 to 31 and another 8 percent age 32 to 41 report “getting a mortgage” as the most difficult step in the homebuying process.
These statistics are from BankRate
