We’ve published the findings from a new study that provides an in-depth look at the trends shaping affordability, specifically for first-time home buyers, titled “Why Everything You Know About First-Time Home Buyer Affordability is Wrong.” The study, developed by First American Chief Economist Mark Fleming and Deputy Chief Economist Odeta Kushi, incorporates unique insights and factors tailored to first-time home buyers.
“Demand from first-time home buyers, most likely millennials, is increasing, yet traditional measures of affordability offer a somewhat misleading perspective for potential first-time home buyers,” said Deputy Chief Economist Odeta Kushi.
“As millennials continue to age into their prime home-buying years, first-time home buyer demand is poised to increase in the years ahead. Yet, traditional measures of affordability are skewed toward existing homeowners who, by definition, can already afford homes,” said Kushi. “Unlike typical affordability studies, we’ve zeroed in on first-time home buyers and factored in often overlooked costs like private mortgage insurance and property taxes to provide a clearer assessment of the housing affordability landscape for first-time home buyers.”
“Why Everything You Know About First-Time Home Buyer Affordability is Wrong” can be downloaded for Fleming and Kushi’s insight on the trends listed below.
- Two Reasons First-Time Home Buyers Should Ignore Traditional Measures of Affordability
- Property Taxes and PMI Included: A Better Way to Track House-Buying Power for First-Time Home Buyers
- Affordability is More Than Just House-Buying Power
- Top 10 Cities with the Largest Supply of Affordable Homes for First-Time Home Buyers