The declining number of first-time home buyers in the market is the major missing piece in the housing recovery.
Despite an uptick in home sales over the past year, the share of first-time home buyers in the housing market dropped for the third consecutive year, and remains at its lowest point in nearly three decades.
The increase in home sales over the past year has instead been driven by more repeat buyers with dual incomes.
The share of first-time buyers fell to 32 percent in this year’s survey; last year first-time home buyers represented 33 percent of the market share. The share of first-time home buyers this year is at its lowest point since 1987, when first-time home buyers represented 30 percent of the market.
Historically, first-time home buyers typically represent nearly 40 percent of primary purchases.