How the rate of first-time home buying has changed over time
For many, the American dream starts with buying a first home.
That milestone was achieved by just under half of all homebuyers last year: First-time homebuyers accounted for 44% of the home-buying population in 2021, according to census data. Sales reached record levels nationally and in certain major metro areas, including San Francisco, New York City, and San Jose, California, first-time homebuyers accounted for more than half of buyers that same year.
examined historical data from the Census Bureau's to see how the share of first-time home buyers has changed in the last 10 years time. A sale is considered a first-time home purchase if neither the primary buyer nor any co-buyer has ever owned another home as a primary residence. In addition to exploring how the rate of first-time home buyers has evolved, the 25 cities with the highest share of first-time homebuyers have been listed (data also from the American Housing Survey).
Among the most important factors that first-time homebuyers consider is whether it makes more financial sense to rent or buy. Generally, this is determined by a calculation of 鈥攁lthough if a buyer intends to stay in a house for at least five years, the scales most commonly tip in favor of owning. In locations such as Detroit in 2021, rent came in far below the average mortgage; in San Francisco, however, renters came out on top despite a high volume of first-time buyers that year.
Keep reading to see how the rate of first-time home buying has changed over time and which metros have the highest rate of these buyers.
