Affordability woes push Americans to delay first home purchases

Dorienne Smith recently bought her first home, a newly built townhouse in a development outside Columbus, Ohio.

Dorienne Smith recently bought her first home, a newly built townhouse in a development outside Columbus, Ohio. It wasn’t easy.

Recent rent hikes pushed her to finally decide to own, kicking off a two-year search. She struggled to find a home in her $400,000 price range that didn’t require a lot of repairs and that was in an area she felt comfortable.

At 40 years old, Smith only recently felt stable enough to finally buy a home. It took her getting a new job in human resources — plus taking out a loan against her 401(k) — before she felt she could afford to buy.

“It’s harder for people, especially those younger than me, to maintain jobs that are going to get six figures or higher, which is really what you need in order to buy a house these days,” she said.

Americans are waiting longer than ever to get into their first home. Many of them are held back by high interest rates, rising home prices and salaries that are barely keeping up with the cost of living. The median age for first-time homebuyers hit 40, according to a report from the National Association of Realtors. That's up from 38 in the prior year, and it's the highest since the group began keeping records in 1981. First-time buyers also accounted for 21% of all buyers, which the association said is a "historic low."