A “starter home” is practically unheard of in New York City.
New studies show New Yorkers buy their first homes later in life than the average American and keep them longer before reselling, Crain’s reported. The average New York City homebuyer is three years older than the average American homebuyer, according to recent surveys and 61 percent of NYC homebuyers last year were acquiring their first home compared to 46 percent nationwide, according to StreetEasy’s 2018 survey of 2,500 New York City residents.
Another survey by StreetEasy’s parent, Zillow Group, found that nearly 75 percent of homeowners in New York City still reside in the first home they bought.
The results are attributed to NYC’s lofty prices. StreetEasy estimated that homebuyers between ages 25 and 44 would need to save 10 percent of each paycheck for 18 years to accumulate enough for a 20 percent down payment in New York City, where the median price of a home is $637,250 – almost three times the national average. Buyers in the same age range throughout the rest of the United States who saved at the same rate could afford a 20 percent down payment in seven years.
According to the StreetEasy report, starter homes in the Big Apple seem like “a thing of the past,” with most New Yorkers renting until they find (and can afford) their forever home. [Crain’s] – Mike Seemuth