The one constituency housing needs most is the one struggling the hardest in the jobs market. Employment among those age 25-34 fell in May to 75.3 percent; this compares to pre-recession rates of 78 to 80 percent employment, according to the Bureau of Labor Statistics.
"Having a job matters for housing," noted Trulia's chief economist, Jed Kolko. "Just 12 percent of employed 25-34 year-olds live with their parents, versus 20 percent of 25-34 year-olds without jobs."
First-time homebuyers have been markedly absent from the housing recovery. In April they accounted for just 29 percent of existing homebuyers, according to the National Association of Realtors. Historically, their share hovers around 40 percent.