More First Time Homebuyers Entering the Market

In a Wall Street Journal article that begins by looking at how young people have been shut out of homeownership since the recession, there appears to be evidence that some are finally entering the market:

Many young people have been delaying buying homes due to tight credit, student loans and rising rents that have made it difficult to save for down payments…

But that is starting to change. So far this year, first-time buyers represented about 38% of the market, greater than the historical average of 35%, according to Genworth. Some two million first-timers purchased homes last year, or 37% of the market…

A number of factors are propelling first-time buyers into the market. Many are entering their 30s, marrying and having children, and need more space than they can get by renting.

Credit also appears to be loosening. According to Genworth, about 78% of first-time buyers are using low-down-payment loans, compared with the historical average of 73%.

Economists said a wave of first-time buyers is likely coming over the next decade, as a large cohort in their mid-20s begin to buy homes.

Considering the size of the Millennial generation, this probably will have a significant impact on the apartment industry. Eventually.