More young adults living with parents as first-time homebuyer share hits record low

TAMPA, Fla. - The path to homeownership is becoming harder for many young adults, and new housing data shows the pressure is changing how and where they live.

First-time homebuyer problems

What we know:

Roughly one-third of adults between 18 and 35 are living with their parents, according to the report. That amounts to more than 25 million Americans.

The trend has been building for years, beginning after the Great Recession, when the housing market crashed and new home construction stalled. The pandemic then accelerated a broader shift, with more young adults either staying in their parents’ homes longer or moving back in. In the six years since this trend peaked during the pandemic, a new report from realtor.com shows more American adults than ever before live with their parents. 

By the numbers:

The latest housing supply research shows the U.S. is short about 4 million residential units.

At the same time, fewer Americans are entering the housing market for the first time.

According to the National Association of Realtors, first-time buyers now make up just 21-percent of the market. That is the lowest level since NAR record-keeping began in 1981. The typical age of first-time buyers has also climbed to an all-time high of 40 years. 

Typically, first-time buyers account for about 40% of home sales, according to NAR.

Why you should care:

Economists say the decline in first-time buyers is concerning because homeownership is one of the primary ways families build equity and generational wealth.

Jessica Lautz, deputy chief economist for the National Association of Realtors, said today’s first-time buyers are facing an especially difficult market.

"There’s very limited affordable housing inventory," Lautz said. "High rents, student loan debt, car loans, credit cards, everything is keeping these buyers from being able to save for a down payment and then find that perfect home."

Lautz said buyers entering the market later in life may lose out on years of potential housing equity.

Local perspective:

In Tampa, the median home price is now just over $440,000, up roughly 30% to 50%compared to five years ago.

That price growth has made it even harder for many first-time buyers to enter the market, especially as higher borrowing costs, climbing rents, and everyday expenses continue to stretch household budgets.

What's unknown

What we don't know:

It is unclear how quickly affordability may improve for first-time buyers. Housing experts say the market would need more available homes, more affordable inventory, and relief from high borrowing costs to meaningfully change conditions.