The Local Market Monitor, Cary, North Carolina, posted its National Economic Outlook report for February on Feb. 17, and one of the themes was that lenders in recent times have survived on refinancings but "most of the juice has been squeezed out of that orange."
As Ingo Winzer, president of Local Market Monitor, writes in his market commentary, now both bankers and builders need more young couples who want a single-family home. But he points out that despite the improving economy, lenders might not find as many of those home-buying couples as they'd like.
Winzer notes, "Not only are young people more inclined to rent apartments in city centers for social reasons, they also carry a high level of student debt that puts a home mortgage out of reach until they're older."
He adds that one more factor weighs against an uptick in home buying by young people--even slightly older couples looking for their first home. And it's purely demographic. Winzer says that the number of people aged 35 to 44 actually decreased from 43 million in 2005 to 41 million in 2013. He says that's not a good development for the real estate market.