After a Heavy Monday post that weaved several items together, and having it called “HEAVY” from you guys in the field (thanks for reading and commenting) the following chart is a great follow up to all of those comments, a result of higher interest rates and may get a tailwind if all the banter of lower rates (by us here , here and here) as well those in various administration offices does occur….
Having seen some estimates of over age 40 more recently, this 2024 chart from our buds at Visual Capitalist lands on age 38 almost 10 years later than just a decade and a half ago and meaningful for family formation and likely speaks to higher costs of homes, debts that many come out of higher education with as well a higher cost of financing via Mortgage rates…
From the article…
Challenges for First-Time Home Buyers
Many are arriving late to the property ladder—and for good reason. The first few rungs have become harder to reach, or in some cases, feel entirely broken.
High home prices and elevated mortgage rates have made homes much less affordable, especially with limited housing inventory. Incomes also haven’t been keeping up with rising home costs, with the price-to-income ratio climbing from 3.5 in 1985 to 5.0 in 2025.
On top of this, many say high rent, student loans, credit card debt, and car loans are hurdles to saving for a down payment.
Of course lower rates will not fix all problems …. We have no axe to grind in rates up or down, but are noting the possibilities if they are lower given the Economic outcome!
Darn it…this post was a bit heavy too… Lots of important information here, hence the length…thanks for your extra time!
Have a Great “First time Homeowner Age” Update day!
John A. Kvale CFA, CFP
AI Content Authenticity: All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
