In August, CNN Money says new home sales were at their highest level since 2008. Even mortgage applications are climbing again. New home construction is at the fastest pace since the recession, as well.
CNN Money also reports the median age of today’s homebuyer has gone up from 35 to 43 since 1985. In 2005, when the housing boom was nearing its peak, the median age of a homebuyer was 39.
"We consistently tell that story of people delaying homeownership," says Skylar Olsen, senior economist at Zillow. "People are delaying things that pre-date homeownership -- like getting married later and having children later."
So, with today’s home buyer 8 years older, one thing they’re wanting is more square footage.
Since 2000, CNN Money says the typical American home for sale had about 1,800 square feet. That's remained fairly steady over time.
Today, new homes have at least 2,200 square feet, according to an analysis by the National Association of Home Builders.
So what's going into all that extra space?
More bathrooms. That’s the second thing the older home buyer is wanting.
"Builders are adding more bathrooms. You want a little bit more privacy," says Olsen.
Many, also, are buying multi-family homes as investment properties to rent out. CNN Money says, “in the late 1980s, people would rent for four years before purchasing their first home. Now it's at least six years.”
One reason for this shift is that young people are too much in debt, mainly from student loans, to buy homes. But Zillow economists disagree, saying there’s still a high probability that someone would still buy a home even with $50,000 in student loans, meaning student debt has no impact on whether or not to buy a home.
There’s no hesitation on banks lending to recent graduates with high student debt, either. That is, as long as the young person has a bachelor’s degree or higher, indication they’ll likely be earning good salaries and will be able to pay off their loans.