US Home Prices Jump 332% Since 1990 as First-Time Buyer Age Reaches 40
Updated
Updated · WJXT News4JAX · Jul 30
US Home Prices Jump 332% Since 1990 as First-Time Buyer Age Reaches 40
1 articles · Updated · WJXT News4JAX · Jul 30
Summary
Realtor.com found the median U.S. home price rose to $418,000 from $96,800 in 1990, pushing the typical first-time buyer age to 40 from 30.
Household income climbed far less—from $31,000 to $85,000, or 174%—lifting the price-to-income ratio to 4.9 from 3.1 and making homes cost nearly five times annual income.
Down-payment pressure has intensified as the typical first-time buyer now puts down about $41,800 versus $8,200 in 1990, and saving that amount takes an estimated 9.7 years instead of 3.2.
Lenders say many first-time buyers now rely on assistance or put down less than 10%, with debt-to-income ratios averaging about 49% compared with roughly 30% to 31% in 1990.
A 26-year-old buyer who purchased a $285,000 home with 10% down said she still needed about $32,000 at closing, underscoring how unusual early homeownership has become.