Interest rates have hit historic lows and home prices have fallen, making real estate a buyers’ market. But one important segment of potential buyers is not ready to sign on the dotted line: young adults.
The rate of homeownership, which measures the percentage of housing units occupied by owners, fell more for 25-to-34-year-olds than any other age group, declining to 34% from 40% in 2005. This generation rather be renting.
A mix of economic factors and changing attitudes makes young adults less willing and able to buy homes.
High unemployment, crushing student debt, and tight credit conditions are keeping many young adults and families from becoming homeowners. At the same time, the housing market collapse is changing this younger generation’s view of housing.
One young, self employed renter said she feels no urgency to buy a home. Instead of setting aside money for a down payment she is putting money into retirement savings and a lot into her business.
Her extra cash flow isn’t going toward owning a home. Her priority is her career and her retirement.
Financially, the recent recession and high unemployment rate have put buying beyond the reach of many young people.
Rising student loan debt - up at least 35% since 2004 could also make it more difficult for young adults to afford a home.
Student loans and debt impedes their ability to save for a down payment, and often makes it difficult for them to take on additional debt.
If you are a recent college graduate looking to rent an apartment in Raleigh, NC, contact Auston Grove Apartments.