Dive Brief:
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Fewer first-time home buyers are investing in real estate, a trend that could hinder the housing recovery.
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The share of buyers in their mid- to late-20s dropped to 34.1% last year from 40.6% in 2007, according to the Census Bureau.
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The reasons young would-be buyers are holding off on purchasing their first homes, analysts say: Hard-hit by the recession, unemployment is high and wages are low for this age group. It’s also tougher for buyers of any age to qualify for mortgages—even without the student loan debt that young consumers are carrying. And a lack of affordable housing has priced many of them out of the market, at least for now.
Dive Insight:
The participation of young buyers in the housing market is important — without enough of them to buy the property that’s for sale, owners who are ready to sell their homes and move into more expensive ones can’t budge. Additionally, young homeowners keep the market robust by replacing older Americans who stop owning homes.