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The American Dream usually includes a house with a white picket fence, but what happens when the younger generation can only afford a fence?
New one research paper is Found that the Millennial Generation is Giving Up on Thinking Forever buy a house Experts estimate that very few people will be able to fulfill the American dream of becoming a home owner.
Economists Seung Hyeong Lee of Northwestern University and Younggeun Yoo of the University of Chicago recently published a paper. home ownership rates Americans born in the 1990s and how their attitudes toward homeownership may influence their behavior.
Li and Yu estimate that about 74 percent of people born in 1990 will become homeowners after retirement, which is 9.6 percentage points less than the approximately 84 percent of people born in 1950 who have purchased a home.
Millennials are between the ages of 29 and 44 and were born between 1981 and 1996, but the study focused on people born in the 1990s.
Researchers found that about 15 percent of the US population has given up on homeownership by age 30.
average price of a house It was $433,275 in November, up 0.7 percent from last year, according to the real estate brokerage. redfinAccording to Mortgage Buyer, the average 30-year fixed-rate mortgage as of last Thursday was 6,21 percent, down from 6,72 percent at the same time last year, freddie mac,
Lee and Yu’s paper, aptly titled “Giving Up,” found that as confidence in being able to buy a home falls, respondents consume more relative to their wealth, put less effort into their jobs and make riskier investments.
But just because millennials are spending more doesn’t mean it’s all going toward avocado toast, as Australian real estate veteran Tim Gurner suggested in 2017.
Johns Hopkins University sociologist Stephanie DeLuca said in a Washington Post The article about Li and Yu’s paper, “If you’re not saving and putting off buying a house, you’re spending it on other types of enrichment activities for your kids, supporting people in your family who are going through hard times.”
In their paper, Li and Yu propose the implementation of a subsidy “that focuses on households close to the margin of leaving homeownership.”
According to Rob Crane, CEO of Down Payment Resource, there are thousands of government assistance programs already in place to help people struggling to buy a home.
He explained, “I don’t think we need more programs. I think we need to do a better job of communicating programs.” Washington Post,
Moody’s economist Christian Deritis warned of a bigger problem – there aren’t enough homes to go around.
“According to our calculations, we need to add 2 million housing units to the economy,” the expert told the publication.
But Redfin said the number of homes for sale in November rose 4.7 percent compared with the same period last year.