Young and housing, two worlds called to rediscover

Published on March 24th 2015

They would have to charge more than double their current salary to purchase a property. Developers and banks are challenged to rescue this natural demand for the new cycle. The offer both mortgages and homes must change and adapt to new times

The revival of demand, the gradual return of credit, price stabilization and increasing the supply of new buildings seem to certify that 2015 has definitely opened the door to a new cycle for the housing market. A new stage in which, in addition to continue correcting imbalances inherited from the boom, the development sector and banks are faced with the difficult challenge of recovering youth as a fundamental part of this business, for his role as plaintiffs first home.

And in recent years, young people have been displaced in the property market by several factors, including the mortgage drought and high unemployment rate stands. Now everything seems to be changing: the banks have begun to reopen the credit tap and more and more clear signs of economic recovery. Remains to be seen whether this improvement will also come to you must be the natural demand for home: young.

Among the signs that show that housing and youth are called to meet again is the formation of new households, whose rate has been maintained despite the crisis. According to the Global Basic Homes, this circumstance powers more than a third of the total purchases youth. Yes, the recession has been a significant change in the profile of this demand. While the average age of the buyer was around 30 years in good times, now approaching 35, confirming a new profile no longer young.

The challenge of the real estate and banking is, therefore, establish the conditions for the younger population can regain access to home. These conditions are that of making a more affordable product by the promoters and, above all, provide affordable credit from the banks. Initiatives not serve without an improvement in the labor market.