ROCHESTER, N.Y. — The average age of a first-time homebuyer is now 40, meaning many won’t pay off their mortgage until they’re 70. Chief Investigative Reporter Berkeley Brean finds the situation is even tougher for those in their 20s and 30s.
Berkeley Brean, News10NBC: “I want you to finish this sentence. 20 and 30 year olds buying a home right now is?”Mark Siwiec, Elysian Homes: “Impossible.”
Mark Siwiec, a successful real estate agent in Rochester, highlights the challenges young buyers face. His latest newsletter is titled “The $400,000 Cake Nobody Under 40 Can Afford.”
Mark Siwiec, Elysian Homes: “I bought my first home at the age of 25. That was back in 1990. You could still do so. And as a result of having done so, I created economic certainty and security for myself. And that in turn helps to create national economic security. And that has been taken from 20 and 30 year olds.”
Jack Connolly, a 24-year-old photographer, finds himself in this challenging group.
Berkeley Brean: “So you are in that group…”Jack Connolly, 24 years old: “I’m close to Mark’s age when he bought his first home.”Brean: “And the likelihood of you being able to buy a home is virtually nothing.”Connolly: “Impossible, yeah.”
Siwiec points to a lack of supply as a major issue. Not enough new homes are being built, driving up the price of existing homes by 75% over the last six years. A $250,000 home in Rochester in 2019 now costs $440,000.
Brean: “You write that the average age of a first-time homebuyer is 40 years old.”Siwiec: “Insane.”Brean: “What does that say?”Siwiec: “Um, that the system is broken.”
Brean noted that a 40-year-old first-time buyer with a 30-year mortgage will be paying it off while on social security.
Siwiec: “30 years later you’re 70 years old. The president last month was proposing a 50-year mortgage.”Brean: “So now you’re up to 90.”Siwiec: “Yes the part is in part financing. But the bigger underlying issue is creating enough inventory to satisfy these needs.”
Siwiec says the country is short three to four million homes. Rochester alone needs 18,000 to 20,000 new homes to level the playing field. He suggests modernizing building codes to reduce construction costs as a way to address the housing shortage.
A survey by Citi Bank reveals 60% of 20 and 30 year olds want to buy a home, but 70% think it’s unrealistic.
‘Impossible’: Rochester real estate agent Mark Siwiec on the challenges of 20 and 30 year-olds trying to buy a home WHEC.com.
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