As the housing market improves, it is opening new options for millennials, many of whom have been on the sidelines waiting for their chance at home ownership. Bobbi Rebell reports.
For many millenials - home sweet home is their parents home. The pressure of the recession, low paying jobs and high student debt burdens have kept them close to home. But as the effects of the Great Recession recede, lower home prices and mortgage rates are allowing millenials to put down roots and buy homes. New data from Zillow shows first time buyers will spend about 17 percent of their monthly income on house payments.. lower than the 22 percent historical average And while stereotypes depict this generation as one of renters - when the time is right- they will be homebuyers, says Zillow Chief Economist Stan Humphries: SOUNDBITE: STAN HUMPHRIES, CHIEF ECONOMIST, ZILLOW (ENGLISH) SAYING: "A delay in home ownership is not an elimination of home ownership. So while they delayed it they are now going to start to buy homes and the income deficit's they have seen during the recovery are going to be made up as well now that the economy is doing better we'll start to see more of those income gains go to the younger demographics. " Getting millennials out of the house - is a key part of growing the economy. First-time home buyers used to be about 40 percent of the market - now they are about 30 percent, according to the National Association of Realtors. And a recent Fed survey found that when young people live at home, they delay buying big ticket items and general entry into economic life. So it is beneficial for them to be out of their parent's house and out in the world - preferably in their own home with furniture. Most millennials who rent- 93 percent of them - really want to own a home someday, according to Trulia. And as they do - their choices may not be so different from previous generations: SOUNDBITE: STAN HUMPHRIES, CHIEF ECONOMIST, ZILLOW (ENGLISH) SAYING: "What we find is that their views toward housing actually are more traditional 43:08 than generation X buyers where they actually express higher sentiment to owning a home is important to the american dream its important for their own personal success." And Humphries says he believes as they buy, it will not be in the high density urban areas where they've been renting- but in suburban locations- where, like previous generations- they can get more for their money.