The average age of first time home buyers is getting older, as more people are deciding to wait before jumping in to the real estate market. Instead, the common choice appears to be living in someone else's home, while waiting for both national and personal economics to improve.
Some feel that owning a home needs to wait - and that safety and soundness is achievable through other housing methods. According to research from The Wall Street Journal, the number of missing households - adults who should be owning or renting assuming finances stayed the same post-recession - increased recently.
The data showed that nearly 2.5 million people are living this way in the U.S., which includes adults living with their parents, seniors living with adult children instead of in their own homes, and people renting a room from an unrelated party, The Wall Street Journal stated.
Living with your parents may seem undesirable to many, but for some people the numbers added up, and it became a more reasonable solution to financial stresses. John O'Connor is a lawyer who still lives with his parents, and he is happy to dodge housing costs.
"Ultimately, I think the price is right - you've got all the amenities of living at home that you wouldn't have otherwise," O'Connor told the news source. "The washer and dryer at your place, the full kitchen all the time, and you're not living that rugged lifestyle. You get to eat steak and not ramen."
Waiting has benefits for many
The longer a person waits to buy their first home, the greater the odds are that they will have saved up more money than if they bought early. Real estate records can help potential buyers find the right home, even if it is later in life.
Jane von Holzhausen, real estate agent for Coldwell Banker Residential Group, told The Street that many first time buyers she helps are older than in years past.
An increase in debt for other financial aspects - such as student loans and poor credit - is the reason many people are waiting, according to The Street.
"Delinquent student loan borrowers have a very difficult time accessing credit and the share of those borrowers is greater today than in the past," said Donghoon Lee, economist at the New York Federal Reserve.
Because of factors like this, more people are deciding to wait on home buying. The Wall Street Journal showed that when a younger generation starts buying at a healthy pace the total economy might receive a boost.