House hunting wasn’t easy for the typical homebuyer.
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In the great housing shortage of 2021, the typical homebuyer has had a rough go.
They’ve made multiple offers and paid above their budget, per a new Zillow report.
Most homebuyers are middle-aged, married, and living in the south – likely a suburb.
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The American Dream of a house with a white picket fence and a dog in the yard is hanging by a thread this year.
Record-low mortgage rates and the era of remote work kicked off hot demand for a home that collided headlong with a historic housing shortage, resulting in real estate that was nearly unattainable. Sky-high prices and fewer homes available have been no match for homebuyers, who’ve found themselves caught in cutthroat competition.
But some came out on top in bidding wars. Zillow’s 2021 Consumer Housing Trends Report took a look at homebuyers in 2021. It found that while the average homebuyer is middle-aged, many are in their 30s. For most, it wasn’t their first time buying a home, and the hunt wasn’t easy. Many had to make multiple offers and paid a lot more than they originally planned.
They mostly bought homes in the suburbs in the south, where more houses were available. Those who moved typically stayed in their metro area, switching neighborhoods or relocating to a nearby city.
Here’s a look at the typical homebuyer, according to the Zillow report.
The average homebuyer is 45 years old, but about a quarter of buyers are in their 30s.
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New homebuyers are typically younger than homeowners who haven’t moved within the previous year, but older than the general renter population, according to the Zillow report. It found that the largest cohort of homebuyers (26%) is between ages 30 to 39. Twenty-three percent of buyers are ages 40 to 49, and another 23% are over age 60.
They’re also typically white.
Only 7% of buyers are Black; 73% are white.
It’s reflective of a homeownership gap that has intensified during the pandemic. According to the Urban Institute, Black homeowners were more likely than white homeowners to miss or defer their mortgage payment due to the pandemic’s economic fallout.
By the end of 2020, three-fourths of white Americans owned homes compared to less than half (44.1%) of Black Americans, per US Census data.
“African Americans and minorities have lost their jobs at greater rates during COVID, so the idea of purchasing a home is probably being pushed even longer off,” Dr. Jessica Lautz, vice president of demographics and behavioral insights at the National Association of Realtors (NAR), told TIME.
They earn more than the overall US population, with a median household income of about $86,000.
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The national median household income in 2019 was $65,700, according to Zillow.
Considering the average age of the typical homebuyer (45), out earning the US population makes sense. They’re a Gen Xer, in the middle of their peak earning years and bringing home …read more
Source:: Business Insider