The median age for the typical first-time homebuyer in the U.S. is 34. A new study examines this groups' buying preferences and behaviors.
Referred to by Zillow as "younger first-time buyers" (under age 40) in its Consumer Housing Trends report, this buying cohort typically enters homeownership while forming new households with partners and having children, have higher median household income than first-time buyers over age 40, and are more likely to use family gifts for down payment assistance. Older first-time buyers are less concerned with qualifying for financing of their home's purchase, and are more likely to pay with cash.
More than a quarter (27.4 percent) of younger first-time buyers go over budget in buying their starter homes, compared with about a fifth (19.9 percent) of older first-time buyers. The homes they end up with reflect that difference: Older first-time buyers purchase somewhat more modest homes (1,931 square feet with 3.1 bedrooms and 2.7 bathrooms) than their younger counterparts (2,000 square feet, 3.2 bedrooms, 3.5 bathrooms).
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