How are first-time homebuyers becoming more diverse?

How are first-time homebuyers becoming more diverse?

 

How are first-time homebuyers becoming more diverse?


  • Using data from NAR’s 2006-2014 Profile of Home Buyers and Sellers, we
    can examine how the demographics of first-time homebuyers have changed
    over the last 9 years. What do these numbers show us about the diversity
    of buyers, and what insight can they provide for the future?
  • The demographic characteristics of first-time buyers overall has
    remained consistent over the last 9 years with slight increases and
    decreases.

Household Composition of First-Time Buyers:

  • Since 2006 the distribution of first-time buyers’ household
    composition has remained predominantly married couples, making up an
    average of 52% of first-time buyers.
  • On average 22% of first-time buyers were single females and 12% were single males or unmarried couples.

Household ChartHousehold Graph

Median Age of First-Time Buyers:

  • The median age of first-time buyers has remained within a 3 year age gap between 30-32 years old.
  • The average median age of first-time buyers since 2006 was 31 years old.

Med Age Chart

Med Age graph

Racial and Ethnic Distribution of First-Time Buyers:

  • The racial and ethnic distribution of first-time buyers has remained
    predominately White/Caucasian, making up an average of 77% of
    first-time buyers since 2006.
  • The averages of other races and ethnicities are:
    • Black/African American: 8%
    • Hispanic/Latino: 8%
    • Asian/Pacific Islander: 7%
    • Other: 3%

Race ChartRace Graph

Country of Birth of First-Time Buyers:

  • Since 2006 the number of first-time buyers who were born in the U.S.
    has increased and then decreased settling back to 86% in 2014, the same
    as in 2006.
  • On average 87% of first-time buyers were born in the U.S. and 13% were born outside of the U.S.

COB Chart

COB Graph

Primary Language Spoken by First-Time Buyers:

  • Over the last 9 years, English has remained the primary language of first-time buyers.
  • On average 7% of first-time buyers spoke other languages, while 93% spoke primarily English.

PL ChartPL Graph

The Future of First-Time Buyers:

  • While the demographics of first-time buyers over the last 9 years
    have not necessarily seen great changes, there is still the outlook for
    the future.
  • William Frey, of the Brookings Institution, recently published the
    book “Diversity Explosion” which looks at the demographic future of
    America.
  • Frey expounds that America is becoming a country with no racial
    majority, with a dramatic growth of young minority populations expected.
  • Frey predicts that sometime after 2040 there will be no racial
    majority; this would ultimately change the demographics of the
    first-time homebuyers moving towards greater diversity. 

Population Projection

For more information on this research, check out the:

2014 Profile of Home Buyers and Sellers and William Frey’s book Diversity Explosion

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