According to the NAR in 2023, only 24% of existing homes were bought by first-time homebuyers, an all-time low. Down from 32% in 2022 (a huge drop). The historical share has typically been around 40%. The median age of first-time homebuyers was 38, an all-time high, up from 35 in 2022. In 2023, 26% of existing homes were bought with all cash. Again, a new record. I’m glad you’re debunking the absurdity that one private equity firm bought 44% of homes. The cohort of Americans aged 25-39 is the largest 15 year cohort in US today. Only recently surpassing baby boomers. This has historically been the age of first-time homebuyers. Barely half of all first-time buyers are even in this cohort 2023. Thesis: younger adult households are largely unable to afford homes! To me, this is a real problem within our society for many reasons.
Millennials have been America's most significant home buyers since 2013, even in 2023 & 2024. The only year they finished below was in 2022 Boomers and Gen naturally are big buyers as well.
The interesting aspect of this situation was my counterargument to those who strongly believed in the bullish demand for housing. They often told me that home sales could never decline because Wall Street would simply purchase all the homes. I pointed out that this was not even remotely true.
Yes, investors in general are the issue in competition for homes to buy to live in. Whether it is "mom and pop owners" or companies that own them, it is creating way too much competition when supply is so low given the number of people needing a home. And, it seems to be more of an issue than in the past.
We’ve had investors in the rental market for many years, and many small, mom-and-pop investors own a big chunk of the rental properties. One reason the government doesn’t offer tax breaks for investors looking to sell is that many American families call these homes their own. Politicians are aware that pushing renters out of their homes to create fewer rental options wouldn’t sit well with the public, especially since it could lead to fewer available places to live.
@@LoganMohtashamiYes, that wouldn't really be a solution as then those people wouldn't have a place to live. One of the biggest issues in my mind are the increases in population that have taken place over the last 70 years and more. We just can't keep growing at the rates we have without very problematic impacts on the housing market and overall environment at large.
@@giniaa2707 The population growth rate peaked in the last century; the demographic boom is over, and many mature economies will see significant declines over the next 100 years. Japan is projected to lose 40% of its population by the end of the century. China no longer has a growing workforce in its prime-age population. Even in the United States, there is a good chance that our population will also decline at some point this century. India and Africa will be the population growth engines
@@LoganMohtashami Yes, population growth across the globe has increased exponentially and is now starting to slow. However, we already have overtaken so much of the globe. When Europeans first came to America, there were a great deal more forests and land available and only used by the native Americans who were here. Now, every corner of this country is highly populated. So, while the growth rate may have slowed from what it was in recent history, we are already an overwhelmingly majority in respect to the ratio of nature/land vs. human population. It all depends on what one compares things to...
According to the NAR in 2023, only 24% of existing homes were bought by first-time homebuyers, an all-time low. Down from 32% in 2022 (a huge drop). The historical share has typically been around 40%. The median age of first-time homebuyers was 38, an all-time high, up from 35 in 2022.
In 2023, 26% of existing homes were bought with all cash. Again, a new record. I’m glad you’re debunking the absurdity that one private equity firm bought 44% of homes.
The cohort of Americans aged 25-39 is the largest 15 year cohort in US today. Only recently surpassing baby boomers. This has historically been the age of first-time homebuyers. Barely half of all first-time buyers are even in this cohort 2023.
Thesis: younger adult households are largely unable to afford homes! To me, this is a real problem within our society for many reasons.
Millennials have been America's most significant home buyers since 2013, even in 2023 & 2024. The only year they finished below was in 2022
Boomers and Gen naturally are big buyers as well.
Housing crash doom creators are a special breed.
The interesting aspect of this situation was my counterargument to those who strongly believed in the bullish demand for housing. They often told me that home sales could never decline because Wall Street would simply purchase all the homes. I pointed out that this was not even remotely true.
@ it's almost as if following the data leads to reasonable middle ground conclusions!
@@SilverCpa I have tried reasonable middle, and it tends not to work with one crowd
Yes, investors in general are the issue in competition for homes to buy to live in. Whether it is "mom and pop owners" or companies that own them, it is creating way too much competition when supply is so low given the number of people needing a home. And, it seems to be more of an issue than in the past.
We’ve had investors in the rental market for many years, and many small, mom-and-pop investors own a big chunk of the rental properties. One reason the government doesn’t offer tax breaks for investors looking to sell is that many American families call these homes their own. Politicians are aware that pushing renters out of their homes to create fewer rental options wouldn’t sit well with the public, especially since it could lead to fewer available places to live.
@@LoganMohtashamiYes, that wouldn't really be a solution as then those people wouldn't have a place to live. One of the biggest issues in my mind are the increases in population that have taken place over the last 70 years and more. We just can't keep growing at the rates we have without very problematic impacts on the housing market and overall environment at large.
@@giniaa2707 The population growth rate peaked in the last century; the demographic boom is over, and many mature economies will see significant declines over the next 100 years. Japan is projected to lose 40% of its population by the end of the century. China no longer has a growing workforce in its prime-age population. Even in the United States, there is a good chance that our population will also decline at some point this century. India and Africa will be the population growth engines
@@LoganMohtashami Yes, population growth across the globe has increased exponentially and is now starting to slow. However, we already have overtaken so much of the globe.
When Europeans first came to America, there were a great deal more forests and land available and only used by the native Americans who were here. Now, every corner of this country is highly populated. So, while the growth rate may have slowed from what it was in recent history, we are already an overwhelmingly majority in respect to the ratio of nature/land vs. human population. It all depends on what one compares things to...
A shill for "Blackstone"... Well done Sir.
This guy is an arrogant one
And then some