According to a new article from The New York Times, there are several economic indicators suggesting a widening path to homeownership among the millennial generation in the next few years.
The job market was particularly unkind to young adults during the recession. Between 2007 and 2010, the unemployment rate within this group soared to 14 percent. As of January, the millennial unemployment rate was down to 9.3 percent.
Researchers at the University of Southern California Lusk Center for Real Estate in Los Angeles say that even though job levels haven’t fully recovered, new household formation – which cratered during the recession – is back up to pre-recession levels.
And saving enough for a down payment is often the biggest challenge for first-time home buyers. Fannie Mae and Freddie Mac have lowered that bar, however, with new conforming loan programs requiring as little as 3 percent down. Loans backed by the Federal Housing Administration are also more affordable, thanks to recent reductions in mortgage insurance premiums.
