The American Dream typically includes a home with a white picket fence, but what happens when younger generations can only afford the fence?
A new research paper has found the millennial generation is giving up on the thought of ever buying a house with experts estimating fewer will live out the American Dream of becoming homeowners.
Economists Seung Hyeong Lee of Northwestern University and Younggeun Yoo of the University of Chicago recently published a paper looking at homeownership rates of Americans born in the 1990s and how their attitudes toward homeownership may affect their behavior.
Lee and Yoo estimate just about 74% of people born in 1990 will become homeowners by retirement, a 9.6% decline from the nearly 84 percent of people born in 1950 who have bought a house.
Americans got spoiled during the baby boom era. Few people actually need a 1200+ square foot house with lofted ceilings and a large back patio.
Row houses existed for a reason. Starter homes existed for a reason.
If you want a larger house, then go in on it with a bunch of family members. Somewhere along the way, we decided that each and every individual one of us needed our own house. Multi-generational houses used to be a thing. Families all living on the same property used to be a thing. It was probably healthier for us too, to be around people who care about your well-being and will be there in case of emergency.
It’s the same damn thing with university. Why does every Uni need a climbing wall and a lazy river? You want those things, then yea, you should expect to be able to pay through the nose for them, both for the amenities and the support and admin staff to keep them going.
This rant brought to you by Simpler Times beer. “It ain’t nothin fancy, but, hey, at least you can afford it.”
My house is way too big for a single person, but finding an appropriate sized house with a decent sized bedroom was impossible. Save for 1-2 places I looked at, everything in my price range was 3 bedrooms and up.