F
irst-time homebuyers in the Memphis area are facing a daunting challenge due to high interest rates, low inventory, and rising real estate prices. According to data from the Memphis Area Association of Realtors, the average sales price of a home in Memphis has increased significantly over the past five years, jumping from $191,000 in 2019 to $270,000 in 2024.

    This perfect storm is causing many first-time buyers to delay or abandon their dreams of homeownership. Ashley McDurmon, president and CEO of Orion Bank, notes that owning a home, especially one's first home, is a fundamental aspect of the American dream. However, with high mortgage rates and limited affordable options, this dream seems increasingly out of reach for many.

    The median age of first-time homebuyers has also risen to 38, the highest recorded since 1981 when data collection began. This trend suggests that more people are struggling to enter the housing market, often due to financial constraints or lack of access to affordable credit options.