According to several economists, things are looking up, with employment among 25- to 34-year olds getting its top level since the end of 2008, the Bureau of Labor reported.
Young people with jobs and freshly increased wages won’t come running into the housing market, however. They will have to put some money aside for down payments and manage their student loan debt first.
According to Doug Duncan, chief economist at Fannie Mae, “They need to see that growth in their income is substantial before they take on that financial obligation, which is the largest they’ll probably have in their life.”
Home prices have continued to increase faster than wages, and young adult employment remains below the levels that group enjoyed before the slump struck.
That group will not be a primary driving force for the housing market for another four or five years.
Meanwhile, mortgage rates are likely to increase in 2015, and affordability will possibly remain a challenge for many buyers.