How are first-time homebuyers becoming more diverse?



 

How are first-time homebuyers becoming more diverse?

Posted in Economist Commentaries, by Brandi Snowden, Research Survey Analyst on January 21, 2015

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• 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.

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.

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%

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.

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.

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. 

For more information on this research, check out the:


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