SEATTLE—Signs are pointing to an uptick in for-sale housing in 2015, according to reports from Zillow and economist Diane Swonk. Locally based Zillow sees improving confidence in the housing market, especially among renters, along with improving credit conditions compared to a year ago. At Mesirow Financial, Swonk asserts that “the Great Recession delayed, but did not destroy, dreams of home ownership” and that “millennials will begin to realize that dream this year.”

Zillow's Housing Confidence Index, reported Friday, finds that more than 12% of current renters nationwide, or about 5.2 million, said they planned to buy a home in the next year. That's an increase of almost 25% from a year ago, when 4.2 milion renters had such plans.

Further, the survey found that 59.7% of renters think buying a home is the best long-term investment a person can make, compared to 56.9% the year prior. The uptick was greater among younger renters: 66.2% of 18- to 34-year-old renters said owning a home was the best long-term investment, compared to 61.4% last year.

The expense of home mortgage as a percentage of monthly income is looking better compared to the share of income that goes toward writing a rent check, Zillow says. With historically low mortgage interest rates and home values still below peak levels, in many metro areas, buyers can expect to spend about 15% of their monthly income on a mortgage payment, compared to 30% for renting an apartment. That compares to historical averages of 22% and 25%, respectively, for mortgage and rent, says Zillow.

The inaugural Zillow Mortgage Access Index found that credit conditions for buying a home are returning to pre-crisis levels. “Now, many borrowers who last year may have only been eligible for FHA loans due to a low credit score or down payment are being offered conventional loans with private mortgage insurance, opening them up to options with more competitive terms and rates,” according to Zillow.

As home affordability continues looking better while rental affordability looks “abysmal,” many current renters appear to be re-thinking their attitudes toward homeownership, “and are expressing more confidence in the overall housing market as a result," says Stan Humphries, Zillow's chief economist. "But while this confidence is heartening, it's important to inject a note of reality here: Not all renters who want to buy this year will be successful. Saving a down payment, qualifying for a mortgage and finding an affordable home to buy all remain formidable challenges for many."

The affordability question for home buying may sort itself out for a number of prospective buyers this buyer, says Swonk, chief economist at Chicago-based Mesirow. “Entry-level wages for new college graduates, in particular, are expected to rise,” according to Swonk. “Improvements in credit scores as a result of a stronger labor market and the return of nonbank lenders should work together to ease mortgage market conditions.”

She notes that an easing of credit conditions is particularly important in supporting an increase in demand; “access to credit (as opposed to desire to buy) remains one of the largest hurdles for first-time buyers,” writes Swonk in a new report. At present, she adds, “nonbank mortgage lenders now appear to be making up for a shortfall in the broader market since traditional banks stepped back. This marks a vote of confidence in housing, not a return to the Wild West of lending that precipitated the subprime housing crisis.”

If millennials in particular act on an interest in owning rather than renting, the beneficiaries may not necessarily be sellers of single-family houses. Swonk points out that since millennials favor urban environments, this bodes well for the condominium market.