When you see the words “first-time home buyer,” you may be inclined to envision a young couple starting a family, living in suburban, USA. And you would be wrong, at least partially. According to the Zillow Group Consumer Housing Trend Report 2018, nearly a third (32.5%) of today’s first-time home buyers are 40 or older, and they like to pay cash.
According to the report, 22.9% of first-time home buyers over 40 pay cash for their home compared to 11.7% of first-time home buyers under 40 who paid cash. And they like to live smaller, too. Starter homes for first-time home buyers over 40 buy homes that have an average square foot of 1,931 square feet, 3.1 bedrooms and 2.7 baths, compared to the younger buyers who buy homes that have an average square foot 2,000 square foot, 3.2 bedrooms and 3.5 bathrooms. And maybe because of this, less than a fifth of older first-time home buyers go over their purchase budget, compared to more than 25% of the younger buyers that go over.
And where they buy is different, too. Under 40 first-time home buyers tend to purchase in urban areas (44.2% versus 31.1% for over 40 buyers), and over 40 first-time home buyers tend to buy in the suburban areas (46.2% versus 41.9% for under 40 buyers).
Are you a first-time home buyer? NASB can help! Call our experts at 855-465-0753 or click for more information on first-time home buying.