Due to ongoing instability in the real estate market, many people
that might at one time have bought homes as young adults are choosing to forgo such purchases in favor of living in rented accommodations.
(A) that might at one time have bought homes as young adults
(B) that as young adults might once have bought homes
(C) who might once have bought homes in young adulthood
(D) who in young adulthood might have at one time bought homes
(E) who, when they were young adults, might at one time have bought homes
The intended meaning of the sentence is that many people who were have bought homes in their young adulthood are choosing to forgo such purchases and now prefer to live on rent rather than own house.
Here the original underlined sentence uses 'that' after many people. To address people, who should be used instead of that. Hence all the options using that can be straightforwardly rejected.
(A) that might at one time have bought homes as young adults
As mentioned above the use of that is incorrect and this answer choice should be rejected. INCORRECT(B) that as young adults might once have bought homes
Same reason as above. INCORRECT(C) who might once have bought homes in young adulthood
This answer choice correctly uses who to address 'many people'. Also have bought is the correct tense of verb used here. This also matches the intended meaning of the sentence. Let's keep this(D) who in young adulthood might have at one time bought homes
The construction of this sentence is wrong as it separates the past perfect tense of the verb i.e. have bought. The use of 'at one time' between have and bought breaks the intended meaning and correct usage of the tense. INCORRECT (E) who, when they were young adults, might at one time have bought homes
Here the clause 'when they were young adults' and 'might at one time' is sort of repetition in terms of timeline. people who bought homes when they were in the young adulthood is similar in meaning to many people might at one time have bought homes which means they bought homes in the past obviously they were young then. Hence the sentence is not coherent. INCORRECTOption C is the correct choice.