First-Time Homebuyer Share Bounces Back Despite Affordability Challenges
by Archana Pradhan
PRINCIPAL, ECONOMIST, OFFICE OF THE CHIEF ECONOMIST
Today, first-time homebuyers represent just over a third of all buyers
First-time homebuyers (FTHBs) represent a growing share of the population, a trend that accelerated in 2020. The average age of FTHBs is 34, and most of them can be classified as Millennials or Generation Z.
According to CoreLogic Fraud Consortium Loan Application data[1], the share of FTHB applications increased to 39% in 2020, up from about 29% in 2015 (Figure 1). However, the share dropped to a three-year low of 34% during the third quarter of 2022, as mortgage rates surged to the highest level since early 2000.
