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Girls and young women want to be homeowners by the time they’re 30 \u2014 a higher priority even than getting married or earning a lot of money.<\/p>\n
About half, 52%, of young women ages 7 to 21 want to buy a house by 30, the most of any goal, according to Girlguiding’s Girls’ Attitudes Survey 2023<\/a>. To compare, 48% want to be married by age 30, and 39% said it’s a goal to earn a lot of money. The organization polled 2,614 girls and young women in the U.K. between the ages of 7 and 21 earlier this year.<\/p>\n The report echoes findings from U.S. teens, 85% of whom think owning a home is part of “the good life,” according<\/a> to the 2022 Junior Achievement and Fannie Mae Youth Homeownership survey.<\/p>\n<\/div>\n Here’s a look at more coverage in CNBC’s Women & Wealth special report, where we explore ways women can increase income, save and make the most of opportunities.<\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n While teens dream of owning a home years from now, it’s a daunting market right now. Houses are more expensive than they were pre-pandemic and mortgage rates are higher. The median U.S. home sale price rose 3% year over year to $420,846 in August, the largest annual increase since October 2022, according <\/a>to real estate brokerage firm Redfin.<\/p>\n Experts say prices are not likely to come down any time soon as the Federal Reserve may continue its interest rate hikes later in the year and homebuyers face a low supply.<\/a><\/p>\n On the other hand, young adults looking ahead to homeownership have time on their side.<\/p>\n “Hopefully by the time they are ready to buy, we will be in a different rate environment, there will be more inventory and a more balanced real estate market,” said Melissa Cohn, regional vice president of William Raveis Mortgage in New York.<\/p>\n<\/div>\n A daughter learns to save money with a piggy bank.<\/p>\n Dejan_dundjerski | Istock | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n Middle and high school students can start gaining financial literacy early, said certified financial planner Kamila Elliott<\/a>, co-founder and CEO of Collective Wealth Partners in Atlanta. It will set them up for success in the housing market when their turn comes around.<\/p>\n To that point, there are three key components to being able to buy your first home, said Cohn.<\/p>\n The down payment for a home is the biggest hurdle for most homebuyers. Although the standard is 20%, you can get by with much less. Shoppers come up with just 6% or 7% as a down payment<\/a> on their first home more often, Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors, told CNBC.<\/p>\n If a high school student wants to buy a house in roughly 10 to 15 years, they can get started with a part-time job and set aside their money for that goal, Elliott explained.<\/p>\n A savings account is key for short-term goals, but if you have been putting aside money in retirement accounts, you may be able to use funds there for your down payment, too.<\/p>\n For instance, a Roth IRA is a retirement account with rules that benefit first-time homebuyers, said CFP Lazetta Rainey Braxton<\/a>, co-founder and co-CEO of virtual firm\u00a02050 Wealth Partners<\/a>. Homebuyers can pull out of a Roth IRA<\/a> account up to $10,000 for the down payment of their first home without penalty, said <\/strong>Braxton, who is a member of the CNBC Financial Advisor Council<\/a>.<\/p>\n First-time homebuyers can also take advantage of down payment assistance programs some banks and states offer, Cohn said.<\/p>\n When you apply for your mortgage, banks will look at your credit score, which is a measure of how well you manage debt. The score generally ranges between 300 and 850<\/a>. The higher the score, the lower \u2014 and better \u2014 the interest rate you may qualify for on your loan.<\/p>\n For mortgages, banks like to see you are able to make consistent payments and are responsible with debt, said Cohn.<\/p>\n To maintain a high score, it’s important to manage the credit card responsibly and make on-time payments in full, said Elliott, who is also a member of the CNBC FA Council<\/a>.<\/p>\n Having a good income can also make you a more competitive buyer, added Cohn.<\/p>\n Lenders look at your debt-to-income ratio to figure out how much mortgage debt you can take on. Monthly payments for student loan debt<\/a>, an auto loan or any other lines of credit can affect that calculation.<\/p>\n If you haven’t been working in a job for two years and your income is based on bonus or commissions, you may need a parent or family member to cosign the mortgage to show more stability in history of income, Cohn added.<\/p>\n<\/div>\n Joybird ranked the best states for flipping houses based on the maximum return on investment and several other factors.<\/p>\n Westend61 | Westend61 | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n If homeownership is a goal for early adulthood, it’s important to anticipate your responsibilities as a new homeowner, experts say. Outside of the mortgage, property taxes<\/a> and insurance costs, utility and maintenance costs also tend to be higher in a house than an apartment.<\/p>\n “Understand what it is to be a homeowner and how things work,” Elliott said.<\/p>\n Keep in mind that your first home might not check all your boxes. It should be in an area you like and meets your needs.<\/p>\n “Your first home will not be your ‘forever home,'” Elliott said. “It may not [have dream amenities like] an open-air kitchen, the fireplace or a pool in the backyard.”<\/p>\n<\/div>\n<\/div>\nMore from Women and Wealth:<\/h2>\n
Three key components to buy your first home<\/h2>\n
1. Down payment<\/strong><\/h3>\n
2. Credit score<\/strong><\/h3>\n
3. Income<\/strong><\/h3>\n
‘Understand what it is to be a homeowner’<\/h2>\n