How are first-time homebuyers becoming more diverse?
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- Using data from NAR’s 2006-2014 Profile of Home Buyers and Sellers, we
can examine how the demographics of first-time homebuyers have changed
over the last 9 years. What do these numbers show us about the diversity
of buyers, and what insight can they provide for the future? - The demographic characteristics of first-time buyers overall has
remained consistent over the last 9 years with slight increases and
decreases.
- Since 2006 the distribution of first-time buyers’ household
composition has remained predominantly married couples, making up an
average of 52% of first-time buyers. - On average 22% of first-time buyers were single females and 12% were single males or unmarried couples.
Median Age of First-Time Buyers:
- The median age of first-time buyers has remained within a 3 year age gap between 30-32 years old.
- The average median age of first-time buyers since 2006 was 31 years old.
Racial and Ethnic Distribution of First-Time Buyers:
- The racial and ethnic distribution of first-time buyers has remained
predominately White/Caucasian, making up an average of 77% of
first-time buyers since 2006. - The averages of other races and ethnicities are:
- Black/African American: 8%
- Hispanic/Latino: 8%
- Asian/Pacific Islander: 7%
- Other: 3%
Country of Birth of First-Time Buyers:
- Since 2006 the number of first-time buyers who were born in the U.S.
has increased and then decreased settling back to 86% in 2014, the same
as in 2006. - On average 87% of first-time buyers were born in the U.S. and 13% were born outside of the U.S.
Primary Language Spoken by First-Time Buyers:
- Over the last 9 years, English has remained the primary language of first-time buyers.
- On average 7% of first-time buyers spoke other languages, while 93% spoke primarily English.
The Future of First-Time Buyers:
- While the demographics of first-time buyers over the last 9 years
have not necessarily seen great changes, there is still the outlook for
the future. - William Frey, of the Brookings Institution, recently published the
book “Diversity Explosion” which looks at the demographic future of
America. - Frey expounds that America is becoming a country with no racial
majority, with a dramatic growth of young minority populations expected.
- Frey predicts that sometime after 2040 there will be no racial
majority; this would ultimately change the demographics of the
first-time homebuyers moving towards greater diversity.
For more information on this research, check out the:
2014 Profile of Home Buyers and Sellers and William Frey’s book Diversity Explosion
