The National Association of Realtors reported that first-time homebuyers, who are mainly young people, bought 32 percent of homes sold nationwide in May. That figure marks an increase over the previous month, although it’s still lower than before the recession in 2007, when first-time buyers accounted for 40 percent.
Theories abound for why young people have stayed away from the housing market. For one, first-time homebuyers lost a temporary tax break in 2010. Banks also tightened up considerably on mortgage lending both for new and traditional buyers. Additionally, some believe that the collapse of the housing market took a psychological toll, scaring some would-be buyers away from the market.
But, recently, many of those issues have subsided. The unemployment rate has decreased, St. Louis-area home prices are recovering and some young people are being enticed back into the market.