According to a survey by the National Association of Realtors, the typical age of first-time homebuyers has risen to 33, the oldest in data dating back to 1981. Of all people who buy a home, 28% did so because they wanted to own a home of their own. These programs are usually available through your State Housing Finance Agency, which are state-authorized organizations that help local residents find affordable housing. That's because most first-time homebuyers are millennials, who have struggled to save for a down payment thanks to the aftermath of the financial crisis, massive student loan debt, and high living costs. A study conducted by the National Association of Realtors and the nonprofit American Student Assistance found that 83% of nonhomeowners said student loan debt delayed their ability to buy a first home.
The debt-to-income ratio, also known as the DTI ratio, is a metric that mortgage companies use to determine if you can afford a mortgage. Several friends are buying several properties in their neighborhoods to form a group of properties for their immediate family. I'll probably work in SF for another year, move in and rent a 1-bedroom room in New York for a couple of years later, and then move in and buy a primary residence in Los Angeles from then on. If you don't have enough down payment to buy a property or you're just not ready to own it yet, consider continuing to expose yourself to real estate through Fundrise.
I think it's likely to be on target with the assessment, housing shortages are driven by those with money buying investment properties, which could have been for first-time homebuyers. This type of program provides a second mortgage for the down payment, and you must make a monthly loan payment for the term (between 10 and 15 years, depending on the program). This can be a bit more of a unique situation, as it's strange to buy something in a city just to move to a new city and then rent again, but I don't feel like buying something in New York, so the idea of renting in SF and New York for the next 3 or more years as long as this buying opportunity exists just seems like negligent. It's becoming much easier for people to borrow money until age 70 or even later, which means that people can buy in their 50s and 60s who would have previously been trapped in their current property unless they had the money to buy directly.
Waiting to buy a home can be a good decision if you're not in a financial position to buy a property at a younger age. But it requires meeting many financial milestones in order to pay for the purchase and qualify for a mortgage loan at a reasonable rate. Any age restrictions around buying a home are largely decided by the lender, although state laws also play a role in that.
