Differences between a First Time Householder and a Move-up Buyer
If you are considering buying a home, you may have noticed that there are many options, like being a first-time buyer or a move-up buyer. Each has their pros and cons, but it might be difficult to decide which may be best for you. In order to help, here are some statistics about typical first time homeowners and move-up buyers.
It was found that the average age of a householder is 33 years old, and, in the same study, it was concluded that the average income of the first-time buyer is $64,074 and that nearly two-thirds of first-time buyer households receive incomes that are between 50% and 150% of the AMI. On the other hand, the average age of move-up buyers is around the age of 45 and their average income is $84,170. Their ratio of household income to the area median income (AMI) has a score of 1.5.
In regards to family and personal life, 31% of first-time buyers have a spouse and children, and households containing only one person are twice as likely to be male headed and households of a single parent are twice as likely to be female headed. Demographically, it has been found that around two-thirds of first-time buyers are white non-Hispanics, 11% are black non-Hispanics, and 15% are white Hispanics. For move-up buyers the average household size is 2.7 persons.
The percentage of first-time buyers that were previously renting is about 77% of the population and the homes they had purchased had a median value of $150,000, with two-thirds of them buying homes lower than $200,000 in value and the median square footage being 1,500. Moreover, 17% of move-up buyers, with their average of higher income, spent more than $500,000 on their homes, which reportedly only 6% of first-time buyers could ever afford.
After conducting a survey it was found that 79% of first-time homebuyers bought single-family detached houses, 11% purchased townhouses, and another 11% chose to buy condominiums. Nearly 86% chose to buy an existing house, while the others purchased a speculatively built home or a custom one. There was a time when first-time homeowners made up nearly half of all existing home sales, but the percentage has dropped to 35%, according to the National Association of Realtors report. It is a hard choice to make on which type of buyer you might want to be but hopefully this information has helped you choose which one is right for you.