Why Everything You Know About First-Time Home Buyer Affordability is Wrong: New Study by First American
Demand from first-time home buyers, most likely millennials, is increasing, yet traditional measures of affordability offer a somewhat misleading perspective for potential first-time home buyers, says Deputy Chief Economist Odeta Kushi
May 8, 2019, Santa Ana, Calif.
First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance, settlement services and risk solutions for real estate transactions, today published the findings from a new study that provides an in-depth look at the trends shaping affordability, specifically for first-time home buyers, titled “Why Everything You Know About First-Time Home Buyer Affordability is Wrong.” The study, developed by First American Chief Economist Mark Fleming and Deputy Chief Economist Odeta Kushi, incorporates unique insights and factors tailored to first-time home buyers.
“As millennials continue to age into their prime home-buying years, first-time home buyer demand is poised to increase in the years ahead. Yet, traditional measures of affordability are skewed toward existing homeowners who, by definition, can already afford homes,” said Kushi. “Unlike typical affordability studies, we’ve zeroed in on first-time home buyers and factored in often overlooked costs like private mortgage insurance and property taxes to provide a clearer assessment of the housing affordability landscape for first-time home buyers.”
“Why Everything You Know About First-Time Home Buyer Affordability is Wrong” can be downloaded for Fleming and Kushi’s insight on the trends listed below.
Two Reasons First-Time Home Buyers Should Ignore Traditional Measures of Affordability
Property Taxes and PMI Included: A Better Way to Track House-Buying Power for First-Time Home Buyers
Affordability is More Than Just House-Buying Power
Top 10 Cities with the Largest Supply of Affordable Homes for First-Time Home Buyers
Opinions, estimates, forecasts and other views contained in this page are those of First American’s Chief Economist, do not necessarily represent the views of First American or its management, should not be construed as indicating First American’s business prospects or expected results, and are subject to change without notice. Although the First American Economics team attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. © 2019 by First American. Information from this page may be used with proper attribution.
About First American
First American Financial Corporation (NYSE: FAF) is a leading provider of title insurance, settlement services and risk solutions for real estate transactions that traces its heritage back to 1889. First American also provides title plant management services; title and other real property records and images; valuation products and services; home warranty products; property and casualty insurance; banking, trust and wealth management services; and other related products and services. With total revenue of $5.7 billion in 2018, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2019, First American was named to the Fortune 100 Best Companies to Work For® list for the fourth consecutive year. More information about the company can be found at www.firstam.com.