Where did all the young buyers go?
It’s a question real estate agents across the country are asking.
And they don’t like the answers that indicate that many folks in their 20s and early 30s no longer are on track for homeownership.
Economists and housing analysts say the shift is due to a combination of economics and psychology.
“What is wrong with young people?” asks Lawrence Yun, chief economist of the National Association of Realtors. “Even at these low mortgage rates, young people are not getting into the housing market.”
Yun said student debt is keeping many young Americans in apartments.
“On average they pay about $300 a month for a recent graduate for student debt,” he told real estate agents meeting in New Orleans last weekend. “That’s why many of them are still living with their parents.”
Surveys of young homebuyers show that high credit card debts and medical expenses are also big obstacles to coming up with the money to pay for a house.