The economy is gaining momentum and unemployment is falling, but the housing market struggles to recover from the 2009 crisis. First time home owners moving out of their parents’ houses could be the missing spark to the stale housing market. Several young adults hope to move out on their own but student and credit card debt hold them back. Countless young adults have lived with their parents long enough to pay off debt, and many are ready to leave the nest.
Economists anticipate new home owners, moving away from their parents’ homes, will stimulate the housing market and in turn benefit other parts of the economy. Moving into a new home offers the most support to the economy and the job market. Chief economist Mark Zandi approximates 3.5 new jobs added for the construction of a single family home. On top of that, new home owners often fill their houses with furniture and appliances, giving a further kick to economic movement.
As more Millennials obtain jobs, it becomes more enticing for these young adults to become home owners. An estimated forty-four percent of adults that live with their relatives intend on buying homes in 2015. Even though a percentage will not follow through with their plan to buy a house, there may be just enough new home sales in the next few years to provide the economy with the boost it needs.