SUPPORTING THE NEXT GENERATION: WHY AFFORDABLE HOMEOWNERSHIP MATTERS
Hi there. I’m Melissa Shaw, founder of Lewis Realtors. We believe deeply in connecting people to a community, one home at a time. But there’s an undeniable shift happening in real estate right now, and it’s creating significant challenges for the younger generation. From declining affordability to changes in first-time homebuyer trends, the data paints a concerning picture.
Let’s break it down and explore what we can do to help more of our younger population achieve one of the cornerstones of financial security—homeownership. After all, homeownership isn’t just about four walls and a roof; it’s about building stronger communities, fostering educational stability, and creating lasting legacies for generations to come.
A LOOK AT THE HOUSING MARKET TRENDS
Did you know the real estate market is increasingly dominated by older generations? Affordability continues to push the average age of first-time homebuyers higher, and here’s the hard data to back that up:
* Only 24% of all real estate transactions in 2024 involved first-time homebuyers. That’s the lowest historical percentage since 1981.
* The average age of first-time homebuyers jumped from 35 in 2023 to 38 in 2024, reflecting how homeownership is moving out of reach for younger adults.
* 26-27% of all homes bought and sold in 2024 were purchased with cash. High cash transactions often mean stiff competition for younger buyers relying on financing.
* 17% of homes purchased in 2024 were for multigenerational living, a sign that families are combining resources to navigate affordability. This figure marks a historical high.
Adding to these challenges, the availability of affordable new construction dipped, with housing starts declining from 1.42 million in 2023 to 1.35 million in 2024. Fewer new homes mean even fewer opportunities for first-time buyers.
WHY HOMEOWNERSHIP MATTERS
Beyond simply owning property, becoming a homeowner offers life-changing benefits, especially for families navigating sought-after neighborhoods in Portland, OR, and Vancouver, WA. Here’s why it matters:
1. EDUCATIONAL STABILITY FOR CHILDREN
Owning a home allows families to stay rooted in one neighborhood, which minimizes school disruptions and provides stability for children’s education. Kids thrive in consistent environments, another reason homeownership is so important for growth-minded families like ours.
2. BUILDING WEALTH FOR GENERATIONS
The financial impact of homeownership is undeniable. On average, homeowners hold six times more assets than renters. This creates opportunities to build long-term financial security and pass that wealth along to children and grandchildren.
3. HEALTHIER LIVING ENVIRONMENTS
For many families, owning a home can mean a healthier environment. While this isn’t the case for everyone or every situation, homeowners have more control over their living spaces. This often leads to more comfort, safety, and overall well-being.
4. STRONGER COMMUNITIES
When people own their homes, they tend to invest more in their communities. Homeowners are more likely to engage in local events, support small businesses, and advocate for neighborhood improvements.
WHAT YOU CAN DO TO MAKE A DIFFERENCE
If you’re wondering how you can help empower the younger generation to navigate today’s challenging market, there are actionable steps we can take together.
1. SUPPORT AFFORDABLE HOUSING INITIATIVES
Advocate for zoning regulations and policies that encourage the development of smaller, more affordable homes in our neighborhoods. Expanding the availability of housing options benefits first-time buyers looking to settle in our communities.
2. ADVOCATE FOR FIRST-TIME BUYER PROGRAMS
Push for the continuation (and expansion!) of grants, financing programs, and down payment assistance initiatives. Every new program creates more opportunities for young people to enter the market.
3. CONSIDER MULTIGENERATIONAL LIVING
With multigenerational households on the rise, this trend is worth embracing. Pooling family resources to purchase a larger home can benefit everyone involved, fostering connection while reducing housing costs.
4. HELP WITH DOWN PAYMENTS
If you’re able to do so, gifting or loaning down payment funds to children or grandchildren can be transformational. You’re not just helping them buy a home but creating a ripple effect for long-term financial security.
WHAT’S NEXT?
The challenges younger generations face in today’s housing market aren’t insurmountable, but addressing them requires collaboration and intentionality. Let’s work together to advocate for solutions that foster a better future—one where homeownership is within reach for everyone, regardless of age.
If you have questions about how you can contribute to this mission, or you’re considering making a move yourself, contact me anytime. Whether it’s supporting first-time buyers or creating legacies through real estate for your family, I’m here to guide you every step of the way.
