Discussion Paper

First-Time Buyers Did Not Drive Strong House Price Appreciation in 2021

Abstract: In May 2022, Sam Khater—chief economist for Freddie Mac—argued that a surge in first-time buyers had been an important driver of the housing market the previous year. In contrast, using data from the New York Fed Consumer Credit Panel, we find that the share of home purchases by first-time buyers fell in 2021. This suggests that other factors were important to the rapid increase in house prices in 2021.

Keywords: first-time home buyers; Home Price Appreciation; pandemic;

JEL Classification: D14; R31; G21;

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Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Liberty Street Economics

Publication Date: 2023-05-15

Number: 20230515a