Are You Too Young to Buy a House?

Dusty Rhodes • November 25, 2024

Owning a house is often a symbol of financial security. However, purchasing a home requires a young buyer to navigate new financial hurdles and lifestyle commitments. The process can be daunting if you’re trying to balance rising housing costs with a new career and obligations like student loan debt. 


If you’re ready to start house hunting, this article will help put you on the path toward homeownership. 


Is There a Minimum Age for Homeownership?


In most states, you must be 18 to own a house. In Alabama and Nebraska, you must be 19, and in Mississippi, you must be 21. 


Someone younger could technically have their name put on a home title, such as in the case of inheritance. However, most states don’t allow minors to own, manage or sell a home until they reach the age of majority. 


What Is the Average Age to Buy a House?


The median age of first-time homebuyers has reached an all-time high of 38, according to the 2024 Profile of Home Buyers and Sellers from the National Association of Realtors (NAR).


That’s roughly a decade older than the average age in the 1980s when most first-time buyers were in their late 20s.


Overcoming Financial Hurdles: Challenges for Young Homebuyers


These are the common obstacles that young homebuyers may face when trying to break into the real estate market.


  • Down payment and closing costs: Many buyers can put down as little as 3% to 5% to secure a home loan. However, a down payment and closing costs can pose a significant barrier to entry for young people. The Federal Reserve Bank of St. Louis indicates that the median home price in the U.S. is $420,400, which means a 3% down payment would be $12,612.
  • Your credit score: Regardless of age, one of the most significant challenges to homebuying is getting a good interest rate. A low interest rate will hinge on a good credit score, which takes time to build. Many young people may only just be opening their first credit cards in their late teens and early 20s. A short credit history can also hinder a lender’s willingness to issue a mortgage. 
  • Debt-to-income ratio: A young person who is just starting their career may not have a very high salary and could still have personal, student or car loans to pay off. Lenders will want to see a good debt-to-income ratio when providing a mortgage. 


Advantages of Being a Young Homebuyer


Purchasing real estate at a young age has many benefits, including building equity in your home and the potential for its value to appreciate over time. 


The Financial Benefits of Early Homeownership


Real estate is an investment that reliably appreciates over time. Those who buy young can often build more equity over the lifetime of their investment. 


“Every time you wait to buy, there is a gap in pricing,” explains Nikola Cejic, a real estate agent in East Hampton, New York, who purchased his first home while in high school. “Those who wait keep chasing the market and falling behind.” 

Homeowners are eligible for more significant tax advantages than renters. They can often write off home-related expenses, including state and local real estate taxes and home mortgage interest. 


Buying a Home Is a Long-Term Investment 


Real estate is America’s favorite long-term investment, according to Gallup. Compared to stocks or gold, it continues to be the primary way Americans invest. Investing in a home also gives you a tangible asset to pass on to future generations. 

NAR research reveals similar findings in its 2024 Profile of Home Buyers and Sellers:

  • 79% believe a home purchase is a wise investment
  • 39% said buying a home is better than owning stock


Predictable Costs: The Stability of Mortgage Payments


Unlike rent, your mortgage payment will be the same every month for the life of the loan. NAR indicates that 91% of first-time buyers finance their home purchase, and a mortgage is often the most costly payment an owner will make. As a result, many people find value in knowing exactly what they’ll pay every month.


However, some hidden costs of homeownership will continue to rise. These include utilities, property taxes, homeowners insurance and maintenance. Residents of homeowners associations may also see their fees increase over time.


Life Planning


Buying a home is often considered an excellent financial investment, but it’s also an investment in your lifestyle. Many homeowners prefer to own simply because it allows them more control over their residence, from paint and interior design to building a shed in the backyard. A home can also provide a sense of stability for families. 


Potential Drawbacks for Young Homebuyers 


While buying young can have significant financial benefits for those who can afford it, it’s common for young people to experience uncertainty in the future. 


Financial Strain: A Major Hurdle for Young Homebuyers 


It’s very common for young people to experience financial hardship. For those who pursue a degree, the average federal student loan borrower has over $37,000 in debt. On top of that, those who are new to the workforce typically have not reached the salaries of those 10 or more years into their field. 


The upfront costs associated with homebuying, including the down payment and closing costs, are often cited as the most significant barrier to entry. Additionally, being a homeowner means you are on the hook for any maintenance required on the property.

“You have a lot more maintenance to manage, whether that’s hiring someone or doing it yourself,” says Nikki Taylor Friedman, a real estate agent in Huntington, New York, who purchased her first home at age 25. “In addition to the mortgage payment, there are additional costs. You’re going to have to pay for wifi and utilities wherever you live, but when you own you have to pay for the landscaping, painting and staining, if a window breaks – those things are your responsibility.” 


Lifestyle Limitations: The Trade-offs of Early Homeownership


Buying a home ties you more closely to a specific geographic area. If you’re seeking a new job opportunity, relocating may be more challenging as you’ll need to either rent your home or 
prepare it for sale


Uncertainty of the Future


Young people commonly don’t have a clear understanding of what their future holds. 


“If you’re looking to purchase and you’re not sure what your life is going to look like in five years, maybe buying a big single-family home is not the ideal situation for you,” Friedman says. “But there are many ways to look at it. Can you sell and make a profit? We’ll never know what the market will look like five years from now, but we can look at the history of the cycle and determine whether or not this is going to be a good long-term investment for the buyer.” 


Are You Ready to Buy a Home?


Ultimately, whether or not you’re too young to purchase a home has more to do with financial and lifestyle readiness than age alone. 


Financial Stability


Thoroughly evaluate your finances before starting the search. You must understand your income, debt-to-income ratio, credit score and savings if you plan to buy a home. 


“You don’t want to be cash poor and on-paper rich,” Cejic says. “You don’t want to overextend yourself.” He suggests that your fixed monthly expenses should not exceed 33% of your income. This includes the monthly mortgage payment, insurance and property taxes, as well as any outstanding debt, such as student and car loans. Having three to six months of living expenses in savings is also wise. 


Lifestyle Considerations


Consider your lifestyle and what you want in a home before starting your search. This includes factors such as location, home type and the number of bedrooms and bathrooms. It also means evaluating whether or not you’re prepared to take on the financial responsibility of homeownership and property maintenance. 


If you are in a relationship, you and your partner must discuss your needs and wants and your long-term financial and lifestyle goals. 


Speak with the Experts

Purchasing a home is a significant financial decision. Consider speaking with a financial advisor or lender to determine if you’re ready to buy. Familiarize yourself with the steps involved in getting a mortgage. Consult local builders, real estate agents, and trusted friends and family who’ve recently purchased property in the same area. 


Don’t Feel Pressure to Buy 

There is often external pressure to purchase a home. Sometimes, this comes from family members, but it can also come from peers. You must feel confident in your decision to buy a house. If the desire mostly comes from a need to impress others, it’s worth it to reconsider. 


Alternatives to Homeownership


If you cannot afford the purchase price of a single-family home, or it’s simply not the right time, there are alternatives.


  • Living with family: If you have a family member you can live with, doing so can help you save money to purchase a home in the future. 
  • Renting: Renting is an excellent option if you aren’t ready for homeownership or want to live a more urban lifestyle. 
  • Multi-family residences: If you can’t afford a single-family home, consider purchasing a condominium or townhome
  • Buy with a friend: Cejic says, “If you and your best friend have been renting together, why not go in on a home together and put it in an LLC or a trust? It will build equity for you both, then later down the line you can sell and purchase on your own.” 


A rent-to-own property is an alternative that buyers will likely not be able to find in today’s housing market. Rent-to-own refers to a legal arrangement where a tenant pays rent to a landlord and can purchase the property later. “Sellers aren’t looking for that option right now,” Friedman says. “They don’t have to rent because they can find a buyer who could buy flat out.” 


The Bottom Line: When Do People Buy a House?


Ultimately, the decision to buy a home has less to do with age and more to do with your circumstances and financial goals. While the dream of homeownership can be enticing, it’s crucial to weigh the pros and cons carefully. You must understand the financial implications, lifestyle considerations, and potential challenges to help you make an informed decision.



Source: Homes.com



Dusty Rhodes Properties is the Best Realtor in Myrtle Beach! We do everything in our power to help you find the home of your dreams. With experience, expertise, and passion, we are the perfect partner for you in Myrtle Beach, South Carolina. We love what we do and it shows. With more than 22 years of experience in the field, we know our industry like the back of our hands. There’s no challenge too big or too small, and we dedicate our utmost energy to every project we take on. We search thousands of the active and new listings from Aynor, Carolina Forest, Conway, Garden City Beach, Longs, Loris, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Pawleys Island, and Surfside Beach real estate listings to find the hottest deals just for you!

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The result is a healthier, brighter home, and evenings you can spend relaxing rather than scrubbing.” 15) You’re facing a cleaning problem that only professionals can tackle For anything potentially dangerous, it’s always a good call to bring in a professional. “When facing situations that go beyond everyday cleaning — like biohazards, rodent droppings, hoarding, or trauma scenes — Bio-One of Oceanside offers the expertise and care needed to restore your space safely,” says Doug, General Manager of Bio-One , a cleaning company in Oceanside, CA. 16) Stress is taking over A dirty space can cause additional stress, and if you’re already nearing your limit, call in a professional. “Life gets hectic and between work, friends, family, and everything else on your plate, that professional clean you know you should get is always moved down on the to-do list,” says Mopstar Cleaners , a home cleaning service in Phoenix, AZ. “A top-to-bottom, deep clean by Mopstar Cleaners doesn’t just transform how your home feels but also how you feel in it, all without the stress and exhaustion of doing it yourself.” For Dana Chequis of Ace of Maids Cleaning , a cleaning service in Salmon Arm, BC, coming home to a clean house is a gift. “Stress-free cleaning and coming home to a clean and fresh-smelling home is worth every penny. So much easier to have someone else do the work while I’m at work,” says Dana. To sum it up, hiring a cleaning service is like hitting an easy button for your life. “Your baseboards sparkle, your fridge no longer looks like a science experiment, and your weekends are yours again,” says Blake Hickman of SA Cleaning Service , a cleaning service in San Antonio, TX. “In today’s busy world, trading hours of scrubbing for a professionally cleaned home is not just convenient, it’s a smart investment in your most valuable resource: time.” 17) You need some time back If you’re running out of hours in the day, hiring a cleaning service can get you back the time you need. “Hiring a cleaning service isn’t just about having a tidy home — it’s about gaining back time, mental clarity, and a sense of control,” says Peter of Seattle Cleaning . “When life gets busy or your space starts to feel more chaotic than cozy, bringing in pros can make all the difference.” In today’s busy world, it’s hard to find the time to focus on cleaning. “Nowadays, most families require 2 parents to work to make ends meet. If they have children, their schedules are even more demanding, with school, activities, homework, and sporting events,” says Regine Farr of Cleanest By Farr , a cleaning service in Lincoln, Nebraska. “The last thing most families have on their priority list is to take the time to thoroughly clean and disinfect their homes. Even when selling their homes, people just do not have the time to get it cleaned up enough to get it on the market. In my years of cleaning, I cannot count how many times I have been told, ‘I don’t know what I would do without you and your cleaning service’” Brooke Lutes of Affordable Cleaning Services , a cleaning service for Northern Virginia, agrees that life can get in the way. “Life gets busy, and before you know it, the dust settles, the windows lose their shine, and the bathrooms get dirty. At Affordable Cleaning Services, we make it easy for you to reset—with a consistent team you choose, customized care, and that fresh, polished feeling your home deserves,” says Brooke. 18) You need some time with family For those with the funds, hiring a cleaning service can give you some much-needed time with your family. “Life gets busy, and cleaning often takes away precious moments you could spend relaxing, enjoying your family, or pursuing personal interests,” says April Prothero, founder of Going GreenHouse , a home cleaning service in Phoenix, Tempe, Mesa, and Scottsdale, AZ. “Professional house cleaners have specialized tools and experience to tackle dirt and grime efficiently. Hiring experts means your home looks good and feels cleaner without the stress and hassle of doing it yourself.” The team at Select Home Cleaning , a home cleaning service in Florida seconds this use of a cleaning service. “In today’s fast-paced world, maintaining a clean and healthy living space can easily fall by the wayside,” says Select Home Cleaning. “Hiring a cleaning service not only restores your home’s sparkle but also provides you with invaluable time to focus on what truly matters, whether it’s family, career, or personal well-being. A professional cleaning service ensures a consistently clean environment, contributing to a healthier and more enjoyable home.” In conclusion, sometimes you need a little help From hard-to-reach roof grime and overflowing gutters to delicate rugs and persistent allergens, keeping a home clean isn’t always a simple task, and it often requires more than just a quick vacuum or dusting. “Hiring a professional cleaning service makes keeping a spotless home effortless and stress-free,” says Wendy Montenegro and the team at Clean Splendid LLC , a cleaning service in Snohomish and King County, “Whether you want to renovate your space, tackle tough stains or prepare for a big move, cleaning experts offer customized solutions to suit your needs. It’s the perfect way to enjoy a clean and inviting home while saving time and energy.”  Whether you’re staging your home for sale, juggling a busy family life, or simply craving a fresh start, bringing in the experts can be the smartest investment you make for your space — and your peace of mind. After all, your home works hard for you — it’s time to return the favor.