Number of first-time U.S. home buyers below historical average
By Laura Kusisto | The Wall Street Journal
Roughly three million potential first-time home buyers have been shut out of the market over the last decade, according to a new study, suggesting the market’s recovery of the past few years could have been stronger.
Tight lending standards and acute shortages of affordable housing in many markets have reduced the pool of potential buyers, particularly among young people, reducing a key component of housing demand.
First-time buyers are a critical area of focus for housing economists in part because they drive new demand for housing. They often serve as buyers of starter homes, allowing those homeowners to trade up.
