If you're a young adult wondering whether you should wait to buy a home—or if buying a home is worth considering—this message is for you.
Every day, headlines warn about an "affordability crisis." Rising home prices and mortgage rates dominate the conversation, leading many first-time buyers to believe homeownership is out of reach.
But here's a different perspective.
The biggest challenge for many first-time buyers today isn't simply affordability. It's the cost of waiting.
Today's Market Isn't as Unusual as You Think
Yes, home values appreciated at an above-average pace during the past decade. Mortgage rates also climbed sharply after reaching historical lows.
However, it's important to keep those numbers in perspective.
- Mortgage rates have largely returned to their long-term historical averages.
- Home appreciation has cooled to below the 50-year average.
- Household incomes over the past decade have generally kept pace with both inflation and home price growth. Looking back over 20 years, income growth has actually outpaced both inflation and housing appreciation.
In other words, today's market conditions are much closer to normal than many people realize.
The ultra-low mortgage rates of 2020 and 2021 were the exception—not the rule. They created an extraordinary opportunity, but they weren't the standard buyers should expect forever.
The Hidden Cost of Waiting
Over the past decade, the median age of first-time homebuyers has increased dramatically. According to the National Association of REALTORS® and the U.S. Census Bureau, first-time buyers are purchasing their first homes approximately eight years later than they were just over a decade ago.
That's eight years of missed home appreciation.
Eight years of missed equity.
Eight years of paying someone else's mortgage through rent.
Everyone has different reasons for waiting. Some are completely understandable. Life happens.
But regardless of the reason, delaying homeownership often comes with a financial cost that isn't obvious until years later.
My Favorite Clients
Some of my favorite clients are truly young adults—people just beginning their careers, sometimes less than a year out of high school or college.
They don't have huge incomes.
They don't have large savings accounts.
Many have good credit because they've learned to be financially responsible.
Most are single and understand that their first home isn't their forever home.
Instead of searching for perfection, they're buying a starting point.
Those conversations are some of the most rewarding I have as a mortgage professional.
We discuss their long-term goals, future careers, family plans, retirement, and even whether their first home could eventually become an investment property.
Most importantly, they understand one simple concept:
The first home isn't about buying your dream home—it's about building wealth.
Equity Can Become Your Down Payment
Consider a modest $175,000 home appreciating at an average annual rate of 4.7%.
Over 12 years, that homeowner could build approximately $115,000 in equity through appreciation alone. That's money that can help fund the purchase of a larger home later in life.
Now compare that to someone who waited those same 12 years before buying.
Will they have $115,000 sitting in a savings account?
Maybe. But statistically, probably not.
Buying Early Changes Everything
The buyers who purchase early often have an advantage because they're still comfortable living modestly.
Their expectations are flexible.
Their monthly expenses are generally lower.
They haven't yet accumulated expensive lifestyles, large vehicle payments, or the pressure of buying in a specific school district.
By the time they're ready for a larger home in their 30s, they already have years of equity working for them.
Meanwhile, many first-time buyers who waited until their 30s face a completely different financial reality.
They're shopping for larger homes.
They're considering schools, commute times, children, and neighborhood amenities.
Their lifestyles—and housing expectations—have grown significantly more expensive.
That's when affordability becomes much more challenging.
Start Earlier Than You Think
Homeownership has never required perfect timing.
It has always rewarded long-term ownership.
The goal isn't to buy the biggest or nicest home first.
The goal is simply to get started.
For parents, this is one of the most valuable financial lessons you can teach your children. Help them understand that buying a modest first home can be one of the smartest long-term financial decisions they ever make.
Fortunately, there are many first-time homebuyer programs designed to make that first purchase more achievable than many people realize.
Final Thoughts
The conversation shouldn't always be about whether homes are affordable today.
It should also include the financial cost of waiting.
Buying a first home isn't just about where you'll live over the next few years—it's about creating equity that can help build your financial future.
If you're a young adult considering homeownership, don't let headlines make the decision for you. Learn your options, understand the numbers, and determine whether now is the right time for your unique situation.
Sometimes the best investment isn't waiting for the "perfect" market. It's simply getting started.
Want to Learn More?
Jay Atterstrom
📧 [email protected]
📞 (214) 377-0033