Since they began keeping records, home ownership has never been lower among Americans younger than thirty-five. Which means that millennials are investing less and less in property. Why is this?
You probably already knew that millennials are more likely than any other older generation to live with their parents. But it might be that they live with their parents because they can’t afford houses, not that they choose not to buy a house simply because they are satisfied mooching off of their parents.
Another factor in this story is the rate of urbanization among youths. Urban living tends to be in apartments and flats and the like. These are typically not owned.
And the attitude that millennials are lazy or unmotivated really isn’t fair. With inflation and unemployment, finding quality work is difficult. And loans are harder than ever to secure:
Even with big drops in housing prices and interest rates, getting a mortgage has become a lot harder since the heady days of “no income, no assets” loans that fueled the housing boom of the early 2000s. Most lenders now require a rock-steady source of income and a substantial down payment before they will even look at potential borrowers. And many millennials won’t be able to reach that steep threshold.
All of that indicates things aren’t going to get better any time soon. The cost of living is rising steadily higher, job opportunities are becoming fewer and smaller, and there are few ways to get a competitive edge. Millennials are paying a high price for their own political leanings. The majority of millennials wanted to hire Obama in the first place. And now no one will hire them. Maybe now that the chickens are coming home to rent, millennials will learn a little bit from their parents. And figure it out.