The Urban Institute’s Housing Finance Policy Center has just released a new blog: Do We Have a Generation Stuck in Starter Homes? Its authors explain that while many believe that first-time home buyers have faced challenges in recent years, the reality is that first-time buyers represent a higher percentage of the market than they did before the financial crisis.
The number of repeat home buyers, on the other hand, has plunged significantly since 2001, and has only begun to make slight gains again in the last four years.
You may have heard that the share of first-time home buyers has declined in recent years. That’s true if you’re looking just at the housing market since 2008, but you have to look behind the numbers and at a longer time frame to see that first-timers have fared well recently compared with repeat home buyers who have truly stalled.