Our 2022 First-Time Home Buyer Stats (Want to Buy a House in 2023? Read This!)

At Open House Austin, we help people buy houses every day. As a first-time buyer, navigating the home-buying process can be pretty intimidating - sometimes, it feels downright impossible!

But through these facts, we’ll shed light on who bought a house in 2022. It’s our hope that you’ll see yourself represented in these stats and confidently push forward with your home-buying journey! First-time buyers made up 55% of our clients. We said this last year, and we’ll say it every dang time - we’re so proud of them!

The real estate market changed a lot. But, our clients kept an open mind to look past evolving interest rates and snag deals while the competition had died down. Not to mention (but, we’ve gotta!) that our Realtors scored some major wins through negotiations, unlocking significant seller credits ($$$) and repairs on behalf of our buyers. Nothing beats a new AC system in Texas! Quick disclaimer…

The following are numbers from our local Austin agent team. We also work with clients all over the nation - and we can connect you with a Realtor who shares our values in your area if you’re looking to buy. Now, on to the numbers!

OUR CLIENT DEMOGRAPHIC

AGE RANGE

91% of our first-time buyers were between the ages of 25-35. 

Co-Founders Kristina and Steph experienced a positive impact investing in real estate early in life, so it has always been a part of our company mission to uplift younger people through free creative home-buying education (house hacking!!!) and one-on-one agent support. 

SINGLE, COUPLE, OR REAL ESTATE PARTNER?

Interesting change here! In 2021, our first-time buyers were pretty evenly split between buying as a couple (50%) or as a single person (45%). In 2022, 52% of our buyers were single while 41% bought as a couple. The remaining 7% was made up of real estate partners!

Considering we’re huge believers in “Houses Before Spouses,” it’s exciting to see our single clients leading the charge and overcoming this traditional barrier to homeownership. You truly don’t need to get married, then buy a house - and our clients are living proof. 💪

If you’re interested in forming a real estate partnership, we highly recommend that you take our Buying a House With Friends Mini-Course. It’s a free, 3-part video series all about finding the right people to partner with and how to protect your investment.

Special shoutout to Emily, Jennifer, and Roxanne, real estate partners and such sweet friends!

@openhouseaustin They are friends who live together, own businesses in the same industry and just bought a house together. Talk about a support system! #buyingwithfriends #buyingahouse #firsttimehomebuyer ♬ You're My Best Friend - Pub Dog

They teamed up with Agent Sydney to buy their first home as a trio. You can learn all about how they addressed their fears and created a thoughtful plan for their investment (a sweet little community, really!) through this episode of our podcast.

HOUSE VS. CONDO

91% of our clients chose to buy a house, and 9% decided to go with a condo. All of them had to weigh the pros and cons to figure out which worked best for their financial situation and wants/needs. 

Do you want to live as close to Downtown as possible? Are you okay with rules/regulations as well as HOA fees as long as you don’t have to fully manage home maintenance on your own? Under the right circumstances, a condo may be the right fit. If you’re on the fence, schedule some time with us to talk through it.

PENNY FOR YOUR (MONEY) THOUGHTS 💰

Buying a house could be the biggest purchase of your life, but what that shouldn’t do is send you into analysis paralysis! We teach people every day about how to buy a house with an investor mindset - so, your first home can be an asset, not a financial burden. Check out Homeschool on YouTube, our free first-time home buyer course, if you’re in panic mode! And, read on about how much cash our buyers were comfortable bringing to the closing table in 2022…

HOME PRICE

34% of our first-time buyers bought a home for less than $399K. In late December 2022, the 90-day average median list price for a home in Austin was $695K (Altos Research). How did the majority of our buyers end up so well off?

Last year, we attributed a good portion of this to location. Thanks to remote work becoming more common in the past few years, being close to an office is no longer a big factor for buyers. In the suburbs, you can find a larger home for a cheaper price. And, of course…

Due to raised interest rates (obviously, but we had to say it!), home prices slowly declined - but not drastically. If you’re waiting for a crash, don’t hold your breath. Historically, Texas home prices hold fairly stable even during times of harsh economic downturn.

DOWN PAYMENT & CLOSING COSTS

What about down payment and closing costs? Our clients pay around 1.5-1.75% of total home cost in closing costs - this number doesn’t change. 

As the buyer, your down payment amount will be based on whatever you’re comfortable with! Know this: You do not need to put 20% down to buy a house. This only removes PMI - which may or may not be of value to you. Your lender can talk you through this. 

Here are the down payment amounts that our first-time home buyers went with:

40% of our clients put 5% or less down on their first home! In 2022, the National Association of Realtors found the average down payment on a house or condo was just 13%. We're honestly thrilled to land well below the average because that means our community is saving cash to customize their homes or re-invest it in more real estate!

ON TO 2023!

We hope these numbers have you optimistic for the year ahead! If there’s one thing we’ve learned, it’s that people hold many misconceptions about the real estate market. It can be challenging to buy a house, of course - but, it’s not impossible to break through as a first-time buyer. These stats back that up! Ready to become a homeowner in 2023? We've got your back! Take Homeschool on YouTube - a completely free resource that’s already helping thousands of people learn about buying a house with an investor mindset.

If you're looking for some one-on-one support, book an intro call with our agent team in Austin, Texas. Looking for a house outside of Austin? Fill out this form, and we’ll set you up with one of our like-minded Realtors in the city of your choice.

Want monthly updates and additional resources? Sign up for our newsletter and follow us on TikTok + Instagram.

We’re on a mission to help first-time buyers, just like you, break through the barriers of traditional homeownership. You tell us! How can we be a better resource for you? Share your feedback with us: team@openhouseaustin.co.