Up to 17 million first-time homebuyers may buy a home during the next five years according to a new study just released by TransUnion. Of these 17 million homebuyers, almost three million are expected to buy next year throughout the U.S. The study reveled some interesting facts about the first-time homebuyer market, as well as the impact of the millennial generation on the market, such as:
Number of First-Time Homebuyers In The Market:
- 4th Quarter 2000 (“normal” housing market, pre-boom era) – 768,0000
- 4th Quarter 2005 (housing boom) – 1,087,000
- 4th Quarter 2010 (during the “bubble burst” period for housing market) – 493,000
- 4th Quarter 2015 – 550,000
Millennial Generation Market-Share of First-Time Homebuyer Market:
- 4th Quarter 2000 – <1%
- 4th Quarter 2005 – 13%
- 4th Quarter 2010 – 32%
- 4th Quarter 2015 – 49%
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Other First-Time Homebuyer Facts In The TransUnion Report:
- Consistently over the past 15 years, about two-thirds (67% in 4th quarter of 2015) of the homes purchased by first-time homebuyers were in non-coastal areas (yay St Louis!)
- Contrary to many news reports that say millennial aren’t buying homes, the percentage of first-time homebuyers that are 20-29 years old has grown from 17% in 2000 to 28% during 2015.
- First-time homebuyers have better credit today with 92% of them having a credit score of 620 or above, compared with just 76% back in 2000
Some Repeat Homebuyer Facts From The TransUnion Report:
- The percentage of repeat homebuyers that are 20-29 years old dropped to 4% in 2015 from 6% in 2000.
- During 2015, 95% of repeat homebuyers had a credit score of 620 or above, up from 87% in 2000.
- Repeat homebuyers share of the housing market (as measured by home loan originations) has dropped from 51% in 2002 to 45% during 2014.
14-17 Million First-Time Homebuyers Expected To Enter Market During Next 5 Years
Source: TransUnion