In the last year home building has surged 22 percent, and building permits are up 8 percent. Even the Builder Confidence Index is up, now above 60. However, first-time home buyers, which usually account for 30 percent of all new home buyers, is just 16 percent.
Why? Underwriting guidelines, underemployment, high student loan debt, and a lower than expected opinion of homeownership, according to Dr. David Crowe, Chief Economist of the National Association of Home Builders.