The average age to buy a first house has been steadily increasing in recent years. In 2020, the average age was 32, up from 30 in 2010. There are a number of factors contributing to this trend, including rising house prices, student loan debt, and a changing job market.

Rising house prices are one of the biggest obstacles to homeownership for young people. The median home price in the United States has increased by more than 50% since 2010, while wages have not kept pace. This means that it takes a larger down payment to buy a home, and monthly mortgage payments are higher.

Student loan debt is another major barrier to homeownership for young people. The average student loan debt for a graduating senior is now over $37,000. This debt can make it difficult to save for a down payment and can also lead to higher monthly mortgage payments.

A changing job market is also making it more difficult for young people to buy homes. The unemployment rate for young people is higher than the overall unemployment rate, and many young people are working in low-wage jobs. This makes it difficult to save for a down payment and can also lead to higher monthly mortgage payments.

Despite these challenges, there are still a number of things that young people can do to buy a home. Here are a few tips:

  • Save for a down payment. The larger your down payment, the lower your monthly mortgage payments will be. Aim to save at least 20% of the purchase price of the home you want to buy.
  • Get pre-approved for a mortgage. This will give you an idea of how much you can afford to borrow and will make you a more attractive buyer to sellers.
  • Be prepared to make compromises. You may not be able to find your dream home right away, but you may be able to find a home that meets your needs and that you can afford.
  • Consider buying a fixer-upper. If you are willing to put in some work, you can often find fixer-uppers for a fraction of the cost of a move-in ready home.
  • Look for government assistance programs. There are a number of government assistance programs that can help first-time homebuyers, such as the Federal Housing Administration’s (FHA) 3.5% down payment program.

Buying a home is a big decision, but it can be a rewarding one. By following these tips, you can make the process a little bit easier and increase your chances of becoming a homeowner.

In addition to the tips listed above, there are a few other things that young people can do to prepare for homeownership. Here are a few more tips:

  • Get a credit report and make sure it is accurate. Your credit report will play a big role in determining whether you are approved for a mortgage and what your interest rate will be.
  • Pay your bills on time. This is one of the best ways to improve your credit score.
  • Keep your credit utilization low. Credit utilization is the percentage of your available credit that you are using. A high credit utilization can lower your credit score.
  • Pay off debt. The less debt you have, the more money you will have available to put towards a down payment and monthly mortgage payments.

Buying a home is a big decision, but it can be a rewarding one. By following these tips, you can make the process a little bit easier and increase your chances of becoming a homeowner.