2022 first-time homebuyer statistics

August 30th, 2022 by

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