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First Time Home Buyers Face Affordability Woes

Affordability is becoming one of the major factors that is preventing first time home buyers from entering the housing market. Homes are appreciating at a rapid rate, one that not even high demand, employment gains, low interest rates and rising rental payments are able to keep up with.

The National Association of Realtors released their annual Profile of Home Buyers and Sellers release, which reveals some scary trends for first time home buyers.

"Solid economic conditions and millennials in their prime buying years should be translating to a lot more sales to first-timers," said Lawrence Yun, according to a Mortgage News Daily report.

"But the unfortunate reality is that the nation's homeownership rate will remain suppressed until entry-level supply conditions increase enough to improve overall affordability."

The trend shows housing prices will continue to rise, making it increasingly hard for millennials to afford homes.

"With home values steadily rising over the past several years, sellers realized a median equity gain of $47,500 compared to $43,100 in 2016, representing a 26 percent increase from the purchase price," according to Mortgage News Daily.

Other factors that continue to make it much harder for millennials include student loans which half of first time buyers owe at least $25,000 in, according to the report.

For more on the hardships first time home buyers are running into, click on the image above.

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