Younger Americans Still Buying Homes

The Millennial generation are increasingly ethnically diverse, more educated, and less likely to be married — all factors that Trulia researchers say should make them less likely to become homeowners. However, after adjusting for population changes, younger Americans are actually buying residences at the same rate as they did during the late-1990s. Trulia chief economist Jed Kolko comments, “For at least the past 20 years, there have been significant demographic headwinds for homeownership for young people.” According to Census figures, the share of 18- to 34-year-olds who are married is 30 percent — a decrease from 47 percent in 1983. Only 29 percent of them live with children versus 39 percent in ’83. Because more people in that age range are unwed and childless, Trulia researchers looked at the number of homeowners who are also identified as the head of their households. After adjusting for these shifts, they found that the share of people under 35 who own homes is the same as it was for 1997. The analysis suggests that the recession actually did little to turn off Generation Y from the idea of owning a home compared to the generations before them. In fact, the study shows that the major group whose ownership rates suffered due to the downturn is middle-aged Americans. That is because many in that demographic purchased houses during the bubble at inflated prices with loans they ended up being unable to repay. | Read More