Housing Recovery Leaves Millennials Out in the Cold
The percentage of 1st time home buyers is shrinking. Tight lending standards are partially to blame. As a result of improved technology and globalization, the US economy requires fewer workers—this in turn is contributing to high unemployment among young adults. We’re still missing 1.3 million people working since the beginning of the recession and many of the jobs that have been created are low wage service jobs. Increasing job opportunities and income among young people is critical for the overall economy and is critical for sustaining a real estate recovery. When a young person buys their first home from someone who’s outgrown that home, the purchase and sale triggers another purchase and sale of a higher priced home—this is what helps push the real estate market along. Hopefully, new, clearer mortgage rules for banks will finally start loosening lending standards and allow more Millenials to take that first step in the housing cycle.