2015 first-time (town) home buyers
First-time home buyers have looked differently over the years. As the price of rents sky-rocket in Seattle, it demands the question of making the leap to home owner. The average age of first-time home owners in 2015 is 31 and the median income is $60,000. (5 times above the poverty line). According to Zillow, the average rent in King County is $1,750 which is over 1/3 of the annual income of those making 5 times above the poverty line! Atop of all that, the inventory of homes for sale in Seattle is at an all time low. The market is competitive and it’s not uncommon to find a home with several offers made on it. The other factor first-time buyers are facing are out of town or foreign buyers paying in cash. For young people getting on their feet, drawing personal loans or tapping into a 401(K) to make a down payment, a cash offer is a death sentence.
What is this doing to the new housing marketing? Everyone one is downsizing. Town homes are replacing single family residences, micro apartments replacing apartments. We are getting economical with our space. The big dollar question of who will carry on the housing market is pressing as we are seeing the average age of first-time buyers creep up and up over the years. First-time home buyers make up 40% of home owners. If the first-time home owners turn into… Can’t-afford-a-mortgage-in-this-economy-until-I’m-45er’s, the repercussions on the market as a whole are colossal.
In an effort to keep up with trends and appeal to the first-time buyers, builders nation-wide have been turning to town homes. Town homes are advantageous for a variety of reasons including being more affordable for buyers, they’re conducive to urban in-fill, and they meet the demand for smaller living spaces. Town homes have become the urban first-time buyers buy. Despite the changing times it is still all about location, location, location. Buyers are willing to put in more for less if that means closer to night life activities, work, and in a nice, safe neighborhood.
Build Urban has long been on this band wagon, we have 6 town homes and a 60-unit micro apartment building currently under construction and several more of both in their preliminary stages. We focus on open interior layouts, which makes our town homes feel spacious and multi-functional. Check out some of our upcoming town homes and micro apartment projects. It may just be the perfect, modern fit.