Unemployment among mid-20 and 30-somethings — who make up the bulk of first-time buyers — has fallen considerably, positioning them to finally buy that starter home.
During the frustratingly slow recovery of America’s housing market, it’s no secret that first-time homebuyers in their mid 20s to 30s have missed out. Mortgage rates have been ultra low, but since the housing market crashed in 2007, young people today haven’t purchased as many homes as previous generations.
That will likely change this year, however. As the National Association of Realtors recently released its report on existing home sales, it’s a good time to look ahead at the prospects of young homebuyers. In 2014, most factors that held them back started improving dramatically: after reaching a high of 10.6%, the unemployment rate for 25 to 34-year-olds — who make up the majority of first-time buyers — has fallen to 5.9%. That’s higher than the overall unemployment rate of 5.6%, but young buyers will benefit from key markets.
Since affordability and coming up with a down payment are often challenges for first-time buyers, markets with the lowest home prices relative to local incomes could present the greatest opportunities for growth. Top of the largest 100 markets in the country is Detroit, and the market already ranks 7th in the number of homes owned by millennials, according to data from Realtor.com.
Read the complete article on Fortune.com.