The proportion of first-time buyers as a percentage of total US housing market buyers has been lower than the historical average over the past few years, and it keeps dropping.
Meanwhile, the proportion of real estate investors is rising. What does this mean for the market, and could it be a warning signal that a housing market crash is coming?
Historically, first-time buyers have made up around 40% of the total home sales market in the US. But in April 2022, they accounted for just 28% of existing-home sales.
This isn’t an overnight change, but the problem is getting worse. Between 2003 and 2010, the proportion of first-time buyers consistently hovered around 40%, although the number went as high as 50% in 2010.
While the share of first-time buyers is lower than ever, investors are starting to play an increasingly important role. In April 2022, investors made up 17% of the sales of existing properties.