Hope for Housing: Young Adults, Minorities?

Despite the housing bust, Chicago-based market research firm Mintel says it sees "golden opportunities in this dismal market" -- namely, young adults and minorities. Mintel said its latest consumer survey suggests that so-called Echo Boomers (aged 13-30) and Hispanic, Asian, and black Americans will be key to the turnaround of the real estate market. "As home prices fall, we see more first-time buyers stepping up," senior analyst Susan Menke said. "Those who couldn't afford to buy during the housing boom -- and now have nothing to sell -- are taking advantage of lower prices. Lenders should focus on first-time buyers, especially Echo Boomers and minorities, to pump life back into the mortgage market." Mintel said the survey revealed that more young adults and minorities plan to buy a house in the next five years. Only 23% of the general population plans to buy, but 38% of adults aged 18-24 and 39% of those 25-34 say they will, the company reported. More Asians (42%), blacks (37%), and Hispanics (30%) say they will buy a home in the next five years than whites (20%). Mintel can be found online at http://www.mintel.com.