First-Time Home Buyers Making Up a Smaller and Smaller Share of the Market

Apollo Chief Economist

With mortgage rates close to 7% and home prices at all-time highs, the share of first-time home buyers as a share of all houses sold has declined from 50% in 2010 to only 24% today, see the first chart below.

With fewer new households able to enter the housing market, affordability is putting upward pressure on rents, which is a problem for the Fed, see the second chart.

The share of first-time home buyers has declined from 50% to currently 24%
Sources: National Association of Realtors, Apollo Chief Economist
Upward pressure on housing inflation
Sources: Federal National Mortgage Association (Fannie Mae), Federal Reserve Bank of New York, US Bureau of Labor Statistics (BLS), Macrobond, Apollo Chief Economist

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