Homeownership Challenges Escalate for Millennials and Gen Z

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A sign advertising homes available for purchase is viewed outside a new home development, Tuesday, Feb. 21, 2023, in Valrico, Fla. A nearly yearlong homes sales slump and a pullback in prices have done little to make homeownership more affordable.(AP Photo/Phelan M. Ebenhack)
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(AURN News) – In a challenging real estate landscape marked by soaring home prices, mounting student loan debt, and inflation, the quintessential American Dream of homeownership is slipping further away from the grasp of millennials and Gen Z, according to recent data released by the National Association of Realtors.

The data, derived from the 2023 Profile of Home Buyers and Sellers, reveals a stark contrast in the affordability of homeownership over the past year. The median household income required to purchase a home has surged to $107,000, a considerable leap from the $88,000 reported in 2022. 

Further exacerbating the disparity, only 6% of African Americans successfully entered the housing market in 2023, a stark juxtaposition to the 88% of white Americans who achieved homeownership during the same period. These concerning numbers underscore the persistent racial disparities within the housing sector, reflecting a trend that has persisted despite ongoing efforts to address systemic inequalities.

The 2023 data also highlights a notable shift in the demographics of homebuyers, as the average age of those entering the housing market decreased to 35 years old. This marks a decline from the all-time high of 36 recorded last year. 


Click play to listen to the AURN News report from Jamie Jackson:

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