Indy's young homeowners outpace national average
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As first-time homebuyers grow older nationwide, Indy's share of young homeowners is above average.
Why it matters: Even with steep housing prices and elevated mortgage rates pushing homeownership out of reach for many young people, Indianapolis has managed to maintain its position as a relatively affordable place to put down roots.
The big picture: U.S. homebuyers are now the oldest on record, with the median age of first-timers reaching 38, a recent report from the National Association of Realtors found.
- That's up from 35 last year and marks a new high in NAR data from 1981.
- The median age of repeat home purchasers rose to 61 from 58 last year, per the NAR report.
Driving the news: 12.7% of homeowners in Indianapolis are under the age of 35, according to the latest U.S. Census Bureau data.
- That's higher than the national average of 10.7%, and second highest in the Midwest.
- Des Moines, Iowa, tops the region with 15.3% of homeowners under 35.
By the numbers: Most Indianapolis homeowners (20.2%) are between the ages of 55 and 64 years old.
- That age group has a slight lead on the 20% of homeowners between 35-44.
- Just 10.9% of Indy homeowners are 75 or older.
Zoom in: Across the country, younger people struggling with high housing costs are moving back in with their parents to make ends meet.
- Among U.S. millennials who don't own a home, 44% say income is the top barrier to buying, per a Bankrate study. And 43% say they can't afford the down payment and closing costs.
What we're watching: A Redfin report released last year found that younger people could not afford to buy homes without major budget changes or help from family.
- About 26% of younger people who recently bought homes say they used family cash for down payments, according to Redfin research.
The latest: Some couples looking to purchase homes are asking loved ones for cash instead of traditional baby or wedding gifts.
Reality check: Those "who don't have family money are often shut out of homeownership," Redfin chief economist Daryl Fairweather said in a research report.
- In time, this could widen the homeownership gap between Black and white families, an Urban Institute analysis suggests.
What's next: President-elect Trump's proposals to blunt the high cost of housing include easing construction regulations and making more federal land available for development.
- But experts say there is no quick fix for the challenges plaguing the home market.