Latest news with #JessicaLautz
Yahoo
8 hours ago
- Business
- Yahoo
First-time homebuyers are an endangered species in the U.S.
The dream of homeownership is fading for millions of Americans. Figures from the National Association of Realtors (NAR) show that only 24% of housing sales last year were by first-time homebuyers — that's down from 50% in 2010. The typical purchaser is also older than in the past, with an average age of 38, or about 10 years above historical norms. Such trends reflect the challenges of climbing on the property ladder as home prices hover near record highs, inventory remains low and with mortgage rates at their highest level in years. "There are fewer first-time homebuyers and they are older than we've ever seen, both because of headwinds inside and outside of the housing market," NAR deputy chief economist Jessica Lautz told CBS MoneyWatch. Opportunity missed Americans who are shut out from buying their first homes miss out on an opportunity to build wealth through homeownership, Lautz said. "It's their biggest asset, and with the delay into homeownership first-time homebuyers are losing about 10 years of housing wealth. And that's for those who can enter into the market," she said. "For those who can't, they lose out on housing wealth by not having that as the biggest asset in their nest egg." Only about 1 in 5 listed homes in March were affordable for households with $75,000 in annual income, according to a NAR analysis of property listings. Today, a household with annual income of $50,000 can only afford 8.7% of listings, down from 9.4% a year ago, according to the data. "The lack of homes, especially at affordable price points where they would be entering the market, has been plaguing first-time homebuyers for the last several years," Lautz said. "It's been a continual issue, especially with interest rates. It makes the cost of homeownership quite high." Along with inadequate construction of affordable housing, many existing homeowners are reluctant to sell their properties given their lower mortgage rates. "People who are homeowners have no motivational factors to move, so that's not freeing up inventory," Lautz said. "It's almost created a hoarding situation for those in low-interest rate mortgages who don't want to separate from them." Financial squeeze Other factors are making it hard for people to buy a first home. The high cost of rent gets in the way of saving for a down payment, while credit card debt, car loans and child care costs also hold first-time homebuyers back. More recently, meanwhile, the resumption of student loan payments is putting many people under financial pressure. Some Americans are managing to save enough for a first home by temporarily moving in with family or friends to minimize the cost of rent, Lautz said. But that approach isn't viable for everyone. "It has been a pathway to ownership for some. But for someone who is 38-years-old, moving in with mom and dad can get uncomfortable," she said. "For an older homebuyer, that might be less attractive for everyone involved." Australian reporter covering Los Angeles protests shot with rubber bullet by police officer Kristi Noem says "we are not going to let a repeat of 2020 happen" amid L.A. crackdown Magic in the dark: The fantastical worlds of Lightwire Theater
CBS News
9 hours ago
- Business
- CBS News
First-time homebuyers are an endangered species in the U.S.
What to know about home prices if you're looking to buy or sell What to know about the housing market What to know about the housing market The dream of homeownership is fading for millions of Americans. Figures from the National Association of Realtors (NAR) show that only 24% of housing sales last year were by first-time homebuyers — that's down from 50% in 2010. The typical purchaser is also older than in the past, with an average age of 38, or about 10 years above historical norms. Such trends reflect the challenges of climbing on the property ladder as home prices hover near record highs, inventory remains low and with mortgage rates at their highest level in years. "There are fewer first-time homebuyers and they are older than we've ever seen, both because of headwinds inside and outside of the housing market," NAR deputy chief economist Jessica Lautz told CBS MoneyWatch. Opportunity missed Americans who are shut out from buying their first homes miss out on an opportunity to build wealth through homeownership, Lautz said. "It's their biggest asset, and with the delay into homeownership first-time homebuyers are losing about 10 years of housing wealth. And that's for those who can enter into the market," she said. "For those who can't, they lose out on housing wealth by not having that as the biggest asset in their nest egg." Only about 1 in 5 listed homes in March were affordable for households with $75,000 in annual income, according to a NAR analysis of property listings. Today, a household with annual income of $50,000 can only afford 8.7% of listings, down from 9.4% a year ago, according to the data. "The lack of homes, especially at affordable price points where they would be entering the market, has been plaguing first-time homebuyers for the last several years," Lautz said. "It's been a continual issue, especially with interest rates. It makes the cost of homeownership quite high." Along with inadequate construction of affordable housing, many existing homeowners are reluctant to sell their properties given their lower mortgage rates. "People who are homeowners have no motivational factors to move, so that's not freeing up inventory," Lautz said. "It's almost created a hoarding situation for those in low-interest rate mortgages who don't want to separate from them." Financial squeeze Other factors are making it hard for people to buy a first home. The high cost of rent gets in the way of saving for a down payment, while credit card debt, car loans and child care costs also hold first-time homebuyers back. More recently, meanwhile, the resumption of student loan payments is putting many people under financial pressure. Some Americans are managing to save enough for a first home by temporarily moving in with family or friends to minimize the cost of rent, Lautz said. But that approach isn't viable for everyone. "It has been a pathway to ownership for some. But for someone who is 38-years-old, moving in with mom and dad can get uncomfortable," she said. "For an older homebuyer, that might be less attractive for everyone involved."
Yahoo
11-05-2025
- Business
- Yahoo
Staging a home may get it off the market faster: NAR
How real estate agents stage a home on the market could be a deciding factor in how homebuyers perceive the property, and ultimately lead to a possible sale. National Association of Realtors (NAR) Deputy Chief Economist and Vice President of Research Jessica Lautz to talk about NAR's report on home staging and other best practices for home DIY projects. To watch more expert insights and analysis on the latest market action, check out more Wealth here. Sign in to access your portfolio
Yahoo
04-04-2025
- Business
- Yahoo
Baby boomers are buying more homes than millennials
(NewsNation) — Baby boomers have surpassed millennials and are buying more homes than every other generation, according to a new National Association of Realtors report. In a reversal of generational trends, baby boomers accounted for 42% of all homebuyers in the past year, while millennials made up 29%. A year earlier, millennials were 38% of all buyers compared to baby boomers at 31%. Millennials lost ground despite being the largest generational cohort in the U.S. and entering their prime homebuying years — a sign that low inventory, higher mortgage rates and record home prices are making it more difficult for younger buyers to break into the housing market. Another indicator of the affordability crisis: The share of first-time homebuyers dropped to 24%, down from 32% last year. The U.S. is short nearly 4 million homes Elevated mortgage rates have slowed home sales, but older buyers, who are more likely to pay in cash, have been less affected by the shift. 'What's striking is that half of older boomers [ages 70-78] and two out of five younger boomers [ages 60-69] are purchasing homes entirely with cash, bypassing financing altogether,' Jessica Lautz, NAR deputy chief economist and vice president of research, said in a statement. Meanwhile, more than 90% of buyers 44 years and younger financed their home purchase, the report said. Why is Rocket buying Mr. Cooper in a real estate mega deal? Millennials were also more likely to rely on family support. Some 27% of younger millennials (ages 26 to 34) and 13% of older millennials (ages 35 to 44) cited a gift from a relative or friend as one of the sources for their down payment. Although they were eager buyers, baby boomers also made up the largest share of sellers at 53%. That's somewhat encouraging given that empty-nest baby boomers own nearly 3 in 10 large U.S. homes — twice as many as millennials with kids, according to Redfin. Nearly 30% of baby boomers in the NAR's latest report said their primary reason for buying was a desire for a smaller home. Some experts have speculated that a 'silver tsunami' could boost the supply of homes as a wave of older homeowners start to downsize. Others are less optimistic because supply and demand don't match up on the map. The NAR's findings underscore a growing generational divide as younger Americans struggle to afford homes that seemed far more accessible to their parents. Recent data from the Federal Reserve highlights the age split in the U.S. economy. Baby boomers owned about 51% of all household wealth at the end of 2024, while millennials accounted for roughly 10%, and Gen Xers held just over a quarter. The NAR's latest generational trends report is based on survey responses from 5,390 homebuyers who purchased a primary residence between July 2023 and June Boomers (ages 60-78): 42% Millennials (ages 26-44): 29% Generation X (ages 45-59): 24% Silent Generation (ages 79-99): 4% Generation Z (ages 18-25): 3% Total may not add up to 100% due to rounding. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
03-04-2025
- Business
- Yahoo
Baby boomers are beating millennials in a housing showdown, scooping up homes in all-cash
Baby boomers are dipping into their cash pile after years of home value appreciation throughout the pandemic housing boom to buy smaller homes near family and friends. Millennials, on the other hand, are tapping into family money for down payments. 'Baby boomers are dominating the housing market,' an economist told Fortune. The baby boomer-millennial housing war rages on. Baby boomers are buying and selling more homes than millennials, according to the National Association of Realtors' latest generational trends report released Tuesday. Baby boomers accounted for 42% of all homebuyers, while millennials accounted for 29%. But just a year earlier, baby boomers made up just 31% of homebuyers and millennials 38%. Baby boomers are not only buying homes in greater numbers, but doing so in all-cash. 'In a plot twist, baby boomers have overtaken millennials—the largest U.S. population—to become the top generation of home buyers,' Jessica Lautz, NAR deputy chief economist and vice president of research, said in a statement. 'What's striking is that half of older boomers and two out of five younger boomers are purchasing homes entirely with cash, bypassing financing altogether.' (The report classifies younger millennials as those between 26 and 34 years old and older millennials as those between 35 and 44 years old; for boomers, the younger of the generation is grouped 60 to 69 years old and the older 70 to 78 years old.) Baby boomers primarily moved to be closer to family and friends and out of a desire to downsize. Because this generation benefited from years of home appreciation, they can use that cash pile they earned from selling to buy a new home. In the past five years alone, home values have soared 45%, according to Zillow. That is more than a decade worth of the typical increase, per Zillow. In February 2020, the average home value was around $245,000, and in February 2025 it was around $357,000, Zillow data shows. In an era when people are refusing to sell their homes out of fear of losing a low mortgage rate, it might not be that surprising to learn baby boomers made up the largest share of sellers at 53%. It's unlikely someone would want to trade a sub-3% mortgage rate locked in during the pandemic for one that is now more than double, unless they can buy their next home in all-cash and be mortgage-free. That, or they've paid off their mortgage, so the rate wouldn't matter either way. Millennials, on the other hand, might need to rely on family money to buy a home. One-third of younger millennials received down payment help in the form of a gift or a loan from a friend or relative, according to the NAR report. Redfin's chief economist, Daryl Fairweather, once called such millennials 'nepo homebuyers,' a play on nepotism. She admitted she was one herself, too. But older millennials are buying big and new because they're using the cash from their prior homes (similar to boomers) or their incomes are more substantial than the younger part of their generation. 'Older millennials are buying bigger and newer homes with larger down payments than their younger counterparts,' Lautz said. 'This shift reflects the increasing role of equity in enabling repeat purchases, especially among older generations, while younger buyers continue to face affordability challenges.' While baby boomers are powering the housing market, others are suffering through it and bringing it to a halt because they can't buy or won't sell. There are two factors plaguing the housing world that have pushed it to a standstill: deteriorated affordability and the lock-in effect. Home prices soared throughout the pandemic because people were buying homes in spades since they could move anywhere to work remotely, and they wanted more space. This drove up demand. Then, inflation pained consumers, and the Federal Reserve raised interest rates—and mortgage rates skyrocketed. Would-be sellers held onto their homes and would-be buyers stayed on the sidelines. That's still playing out, as is evident in sales data. Last year, existing home sales fell to their lowest level in three decades, and they might not be any better this year because not much has changed when it comes to mortgage rates or home prices. The situation could actually worsen once the true effect of tariffs becomes known. All of this has resulted in a leg up for boomers—not so much for millennials, Lautz said. 'Baby boomers are dominating the housing market as repeat buyers, often purchasing their next homes with cash,' Lautz told Fortune in a statement. 'Older millennials are also likely to be repeat buyers, but are settling into the 'golden handcuffs' of low-rate mortgages and may lack motivation to move. Meanwhile, younger millennials—many of whom are first-time buyers—are being shut out due to the affordability crisis and lack of inventory.' This story was originally featured on Sign in to access your portfolio
