While job growth is picking up nationally, wages remain flat, which is holding back a more robust recovery, the National Association of Home Builders wrote in a recent blog post.
“A significant amount of pent-up housing demand exists, but for it to be unlocked more rapidly, additional gains in wages must be realized,” NAHB economists wrote.
During the recession, all age groups saw a decline in incomes, with the exception of the 65-and-older cohort. Since 2000, those under the age of 24 have seen the largest reductions in income, followed by people ages 45 to 54 (the top-earning age group), NAHB’s analysis shows.
First-time home buyers remain a shrinking number in the housing market. They accounted for 27 percent of existing-home purchases in December, down from 30 percent a year earlier, according to the National Association of REALTORS®.
Many young adults are facing high student loan debt, stifling their wage growth and ability to qualify for a mortgage, according to NAR’s Economists’ Outlook blog.
—By REALTOR® Magazine