Jan
31

Rents rising, home prices up, yet Millennials continue to be priced out of the housing market: Homeownership rate not tracking gains in prices.

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Millennials as a group defined by an age range, are one of the largest cohorts of people right alongside baby boomers. Millennials have already reached their prime house humping age range but somehow, the homeownership rate in this category is not moving.  The thought was that Millennials would soak up all the excess demand and continue to push prices upwards.  In reality, what has kept prices up is artificially low interest rates, investors buying, and a low supply of property out in the market.  Many Millennials are forced to rent or to live at home with their parents well into adulthood.  Controlling biology has worked out nicely that new households tend to be smaller so many adults can just move back into their childhood room and have tasty tacos with their parents.  The end result is that the housing market is moving for many different reasons beyond household formation. In fact, major household formation has come in the form of rentals since the Great Recession ended.  Let us look at the latest data impacting Millennials…

Rents rising, home prices up, yet Millennials continue to be priced out of the housing market: Homeownership rate not tracking gains in prices.

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