Three of My Buyers Are 30 and Under. Here’s How They Bought Homes in Cincinnati.

If you’re in your 20s or early 30s, you’ve probably heard some version of this: Young people can’t afford to buy homes anymore.

But that isn’t the whole story.

Recently, I’ve worked with three sets of buyers who are all 30 years old or younger. Two have purchased or are closing on their homes, and the third is actively searching and writing offers.

The youngest buyer? Twenty-one years old.

All three are shopping or purchased for under $325,000 in the Cincinnati area. But what’s interesting is that they approached buying a home in three completely different ways.

One put 5% down. Another couple saved 10%. The third saved a full 20% while also keeping an emergency fund.

None of them had some secret formula. They simply made different choices based on their income, savings, lifestyle and priorities.

Here’s how they did it.

Buyer #1: 21 Years Old and 5% Down

My youngest buyer is 21, and she bought her first house with 5% down.

Not 20%. Five.

She had been saving for a couple of years, picking up extra work through DoorDash and working night shifts at a smoothie shop while going to school.

Her family was also able to help.

There seems to be a misconception that receiving help from family somehow makes buying your first home less legitimate. It doesn’t. Depending on the loan program and lender requirements, gift funds from eligible family members can sometimes be used toward a home purchase.

In her situation, a parent also co-signed on the mortgage. That doesn’t necessarily mean that arrangement has to remain forever. As her income and circumstances change after school and marriage, refinancing may eventually be an option if she qualifies on her own.

But financing was only half of her strategy.

She also didn’t buy a perfect house.

Her new home needs paint, cleanup and plenty of weekend projects. Her family is pitching in, and instead of paying a premium for someone else’s renovations, she’s putting in some sweat equity.

She also looked farther outside Cincinnati, where her budget could buy more.

The result?

A home on approximately 0.56 acres, with enough land to potentially add onto the house or build a large outbuilding someday.

She didn’t necessarily buy her forever house at 21.

She bought a house that gives her options.

And for a first-time buyer, that can be incredibly valuable.

Buyer #2: 24 Years Old, 10% Down and Ready to Leave Apartment Life

My second buyers are a couple who are just 24 years old.

Their motivation for buying wasn’t complicated.

Their life simply didn't fit in an apartment anymore.

They’re outdoorsy. They have kayaks, bikes and gear — and nowhere convenient to put any of it.

They wanted a garage. They wanted a yard. They wanted storage. They wanted to be able to walk outside their door without feeling like everything they owned had to fit inside an apartment.

But they didn’t decide this six months ago.

They started preparing years ago.

They worked throughout college, drove hand-me-down or used cars, avoided or minimized student loan debt and started consistently putting money into savings.

They kept their home savings in a high-yield savings account, separate from the money they used for everyday expenses.

Their original goal was to purchase a home around $325,000. Once they had approximately 10% saved, we started seriously shopping.

They’re now closing on a home outside the city with more room to breathe, convenient access to the river and a bike trail, and — finally — somewhere to put the kayaks.

Their story is a good reminder that there doesn't have to be one dramatic financial reason to buy a home.

Sometimes you're simply ready for a different lifestyle.

The important question is whether buying makes sense financially and personally for you right now.

Buyer #3: 30 Years Old, 20% Down and Intentionally Buying Below Their Maximum

My third buyers are both 30.

They could afford to spend more than they’re planning to spend.

They just don’t want to.

They've saved a full 20% down payment, but they’re trying to keep their purchase price below approximately $275,000.

Their strategy has been years in the making.

They both dealt with education costs differently. He worked at his university while earning his master's degree, which allowed him to have the degree paid for. She chose a career path that helped her pay off her student loans.

They saved part of every paycheck and put additional money from bonuses toward their goal. They invested. They kept their house savings in a separate high-yield savings account.

Their cars are paid off, and they intentionally live below their means.

Most importantly, they didn't want to use every dollar they had to buy a house.

They wanted their emergency fund to remain intact after closing.

That's an important distinction.

Putting 20% down isn't a requirement for every buyer or every loan program. For this couple, it's simply the strategy that makes them comfortable.

They're also looking for something completely different from my first two buyers.

Instead of acreage farther outside Cincinnati, they're concentrating on closer-in communities such as Pleasant Ridge, Madisonville and Deer Park.

They like character homes, walkable business districts, coffee shops and being relatively close to everything.

And that illustrates something I wish more buyers understood.

What Does $275,000 to $325,000 Buy Around Cincinnati?

There isn't one answer.

A buyer who wants acreage and doesn't mind driving farther may find an older home with a larger yard and room for an outbuilding.

Another buyer at roughly the same price point may choose a smaller home in an established neighborhood closer to Cincinnati because walkability and location matter more than acreage.

Neither choice is wrong.

You're buying more than bedrooms, bathrooms and square footage.

You're choosing the lifestyle you want your house to support.

That's one of the advantages Cincinnati and the surrounding communities can still offer first-time buyers. There are dramatically different types of neighborhoods and housing within the same general price range.

Do First-Time Buyers Need 20% Down?

This is probably one of the biggest misconceptions I hear from potential buyers.

No, you don't necessarily need 20% down to buy a home.

The amount you'll need depends on the mortgage program you qualify for, your finances, the property and your lender's requirements.

That's exactly what these three buyers demonstrate:

• One buyer purchased with 5% down.

• Another couple saved 10%.

• The third couple chose 20% down.

The “right” down payment isn't automatically the biggest one.

A larger down payment may reduce the amount you need to borrow and could reduce your monthly housing costs. Depending on the loan, it may also eliminate private mortgage insurance.

But putting more money down can also leave you with less cash after closing.

For my third buyers, keeping a substantial emergency fund was non-negotiable. For my 21-year-old buyer, getting into a house earlier — with family assistance and a smaller down payment — made more sense.

That's why I don't think buyers should start with an arbitrary down-payment percentage.

Start with the bigger financial picture.

What These Young Cincinnati Home Buyers Have in Common

Their strategies are different, but there are a few things all three have in common.

They started saving before they were ready to buy. They were willing to make tradeoffs. They kept their housing goals realistic. And none of them expected their first house to give them absolutely everything.

They also made deliberate decisions about debt.

That doesn't mean you have to live like a hermit for five years or have your entire financial life figured out before you can buy a house.

It means having a plan matters more than hitting some imaginary milestone that says you're finally ready.

If you're renting in Cincinnati or Dayton and wondering whether buying a home is even realistic for you, don't assume the answer is no because you haven't saved 20%.

And don't assume the answer is yes just because you're tired of paying rent.

Run the numbers first.

Find out what your payment would actually look like. Look at what your budget buys in the neighborhoods you like. Then decide whether buying now makes sense — or whether you're better off spending another six or twelve months preparing.

Thinking About Buying Your First Home in Cincinnati?

If you're in the saving stage, you don't have to wait until everything is perfect to start asking questions.

In fact, I'd rather talk to someone six or twelve months before they're ready than have them call me after they've already made financial decisions that make buying harder.

We can talk about what homes actually cost in the Cincinnati or Dayton area, what different budgets buy, which areas might fit the lifestyle you want, and when it makes sense to bring a lender into the conversation.

You may be closer than you think.

And if you're not? That's okay too. At least you'll know exactly what you're working toward.

Rhonda Everitt
Comey & Shepherd Realtors
Serving home buyers and sellers throughout the Cincinnati and Dayton areas