New home buyers have been tough to build for in recent years because they've been hiding. Millennials have delayed forming households and instead have been renting and doubling up with roommates creating, "pent-up households." But data shows that those pent-up households are spilling over into the housing market. Recent Census Bureau data has shown the household formation rate rise from 500,000 a year to 1.4 million a year. There's also been the question of the value of home-owning in the eyes of Millennials. Metrostudy Chief Economist Brad Hunter thinks the data shows renewed interest in home buying:
"Data on new-home purchase money mortgages confirm that first-time homebuyers are re-entering the market. Data from AEI and Barclays Research shows that first-time home buyer loans are up 17% year-over-year based upon the last twelve months ending in November 2015. The data show a steady upward climb in these loans throughout all of 2015 after having been completely flat in 2014."
There's more to the phenomenon than just aging millennials. Head on over to sister site Builder to read the full article to find out where these first time buyers are coming from.