First American Financial Corp. has released a new study that provides an in-depth look at the trends shaping affordability, the company announced.
The study is entitled “Why Everything You Know About First-Time Home Buyer Affordability is Wrong,” and is specifically for first-time homebuyers. It was developed by First American Chief Economist Mark Fleming and Deputy Chief Economist Odeta Kushi.
“As millennials continue to age into their prime homebuying years, first-time homebuyer demand is poised to increase in the years ahead. Yet, traditional measures of affordability are skewed toward existing homeowners who, by definition, can already afford homes,” Kushi said in a release. “Unlike typical affordability studies, we’ve zeroed in on first-time homebuyers and factored in often overlooked costs like private mortgage insurance and property taxes to provide a clearer assessment of the housing affordability landscape for first-time homebuyers.”
Among other things, the report examines reasons first-time homebuyers should ignore traditional measures of affordability; better ways to track housebuying power for first-time homebuyers; and the top cities with the largest supply of affordable homes for first-time homebuyers.