Last Year 33 Years Old → This Year 36 Years Old, Black Buyers Accounted for Half Last Year
Korea's Average Age for First-Time Home Purchase in 2020 Was 39.9 Years Old
[Asia Economy Reporter Bang Je-il] This year, the average age of first-time homebuyers in the United States was 36 years old. This is an increase of 3 years compared to last year, indicating that consumers are finding it more difficult than ever to purchase homes in the U.S. housing market, which has experienced upheavals such as inflation and interest rate hikes following COVID-19.
On the 3rd (local time), Bloomberg News reported, citing data from the National Association of Realtors (NAR), that the average age of first-time homebuyers in the U.S. this year reached 36, the highest since the survey began in 1981. This is a 3-year increase from last year's average age of 33 for first-time homebuyers.
Additionally, the proportion of first-time homebuyers among all homebuyers decreased to 26%. This is also the lowest level since the related survey began. The average in previous years was about 40%.
NAR explained that this situation is due to intensified competition among buyers as housing prices rise and available listings decrease. The worsening economic conditions for younger generations, including the burden of student loan repayments, were also cited as reasons. Although housing prices have recently declined, the rise in mortgage interest rates has led to a decrease in transactions overall.
The racial diversity of homebuyers has also dropped to its lowest level in over 20 years. The proportion of Black homebuyers this year was 3%, only half of last year's figure. The proportion of Asian homebuyers also sharply declined from 6% last year to 2% this year, the lowest since 1997. In contrast, the proportion of White homebuyers increased by 6 percentage points from last year to 88%.
In South Korea as well, the age at which people purchase their first home is gradually increasing. According to the Ministry of Land, Infrastructure and Transport's '2020 Housing Survey Characteristics/General Household Research Report,' the average age of household heads purchasing their first home was 39.9 years in 2020. It rose from 39.1 years in 2017 to 39.4 years in 2018, dropped back to 39.1 years in 2019, and increased again in the 2020 survey.
The average age of household heads who recently succeeded in purchasing a home also rose significantly to 43.7 years, compared to 42.8 years in 2019. By region, the metropolitan area recorded an average age of 40.3 years, higher than the non-metropolitan area's 39.6 years. Additionally, newlywed couples, elderly households, and lower-income households all showed the highest average age of household heads purchasing homes compared to the previous year.
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