Jan 14, 2025
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For many young Americans, buying a first home is now a dream deferred. The average first-time buyer is 38, up from the historical range of 29 to 33, according to the National Association of Realtors.
“First-time buyers face high home prices, high mortgage interest rates and limited inventory, making them a decade older with significantly higher incomes than previous generations of buyers,” said Jessica Lautz, NAR deputy chief economist and vice president of research.
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Meanwhile, existing homeowners use equity to secure dream homes with cash or large down payments.
Build a plan
Younger buyers face several challenges.
Rising property values nationwide make it tough for those with limited savings or student debt to afford down payments. Higher mortgage rates further increase monthly costs, pricing many out of the market. Affordable housing options are also scarce, as builders focus on luxury homes while sellers hold onto properties longer, shrinking inventory and driving up prices.
Building a strong financial foundation is just the first step — finding a good mortgage can be just as critical. Shopping around for rates can save you thousands over the life of your loan, and comparing multiple offers ensures you’re getting the best deal possible.
If you’re looking for an easy way to compare rates and lenders, the Mortgage Research Center (MRC) is fast and free.
(MRC) will help you quickly compare rates and estimated monthly payments from multiple vetted lenders. All you have to do is enter some basic information about yourself, such as your zip code, your desired property type and price range and annual income.
Based on the information you provide, MRC will show you mortgage offers tailored to your needs so you can shop for a mortgage with confidence.
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After you match with a desired lender, set up a free, no-obligation consultation to see if you’ve found the right fit.
Improving your credit score, reducing debt, and saving strategically can secure better loan terms and lower interest rates, making a home more attainable.
Next, it’ll be vital to address any financial roadblocks that might stand in your way. If paying down debt is your priority, Credible can help you consolidate and simplify repayment.
Their online marketplace of vetted lenders provides personalized loan offers based on your needs, allowing you to pay off your debt more efficiently at a fixed rate — without juggling multiple bills.
To get started, all you have to do is provide some basic information, and Credible will present you with a list of loan options to help you start paying down your debt.
Once your debt is under control, WiserAdvisor can guide you in building a personalized financial plan to achieve your goal of homeownership.
WiserAdvisor connects you with pre-screened financial advisors who can tailor a strategy to meet your needs. After answering a few quick questions, you’ll receive a match with two or three advisors. From there, schedule a free consultation to find if one of them is the right fit for you.
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Increase your chances
One of the most effective ways to navigate today’s housing market is to expand your search to more affordable areas. Instead of focusing solely on high-demand cities, consider exploring smaller or emerging markets where housing is less expensive and the competition isn’t as fierce.
For remote workers, the flexibility to live farther from traditional business hubs can be an asset. With more companies offering work-from-home options, many buyers have the freedom to prioritize affordability over proximity to an office.
Before making a move, be sure to check and compare mortgage rates in your target area with the Mortgage Research Center (MRC). It’s an easy way to find competitive offers tailored to your needs, helping you make a confident decision in your new market.
Additionally, some U.S. cities have introduced programs to attract new residents, providing grants or tax breaks that can reduce the cost of buying a home.
Leverage available help
First-time homebuyers can take advantage of grants, FHA loans (3.5% down), and USDA loans (zero-down in rural areas). Many states offer grants for down payments, while some employers provide home buying assistance or discounted mortgage rates.
The more money you have saved up, the easier it’ll be to buy a home. Don’t just leave your house fund sitting in your checking account, though.
You can make your money do a little of the work for you by placing it in a high-yield savings account, like the ones offered through Public.com.
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Public.com offers a High-Yield Cash Account with a competitive 4.35% APY, no fees, no minimum balance, and unlimited transfers. Your funds are FDIC insured, and interest accrues daily, paid out monthly.
In addition to savings, Public is a commission-free, self-directed investing platform where users can manage stocks, ETFs, crypto, and more, with real-time insights and social features. Unlike robo-advisors, Public gives you control over your investments and promotes transparency through an optional tipping model instead of payment for order flow.
While on the subject of growing wealth with high-interest vehicles, the saving power of certificates of deposit shouldn’t be overlooked. You can find the best ones at SavingsAccounts.com.
SavingsAccounts.com is an online platform that simplifies finding the top Certificate of Deposit (CD) options for your savings goals. It’s perfect for conservative savers, retirees, and long-term planners looking for low-risk, high-return investments.
Busy professionals and cost-conscious consumers will appreciate SavingsAccounts.com's easy-to-use comparison tool, which provides real-time data on rates and terms from various banks. With tailored recommendations and clear details on fees, it saves time and helps users make informed decisions to maximize returns and secure their financial future.
If you want to further your research, dive into our list of the best high-yield savings accounts of the year.
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The Moneywise Editorial Team is a group of passionate financial experts, seasoned journalists, and content creators who are deeply committed to providing unbiased, relevant, and accurate financial information. With years of combined industry experience, our team is dedicated to maintaining the highest journalistic standards and delivering informative and engaging content. From personal finance and investing to retirement planning and business finance, we cover a broad range of topics to suit the financial needs of our diverse readership. You can trust the Moneywise Editorial Team to empower you with the knowledge and tools necessary to make wise financial decisions.
