Should I take “buy a house” off my to-do list? But again, the supply of homes needs to catch up for the market to get any easier. Though millennial homeownership has improved during the pandemic, some cite the student loan pause as a driving factor.Ĭontinuing the pause on student loan payments or enacting broad forgiveness would likely help encourage millennial buyers. The millennial homeownership rate lags behind rates for both baby boomers and Gen X when they were in the same age range. Plenty of research has found that millennials are delaying homeownership because of their student loan debt. Millennials Have a Student Loan Debt Problem And investors have increasingly sought single-family homes, aka the typical type of home first-time buyers are looking for. It’s not a new phenomenon, but it is growing.
SUPERHERO BUBBLE EXPLODE PROFESSIONAL
There’s Professional (With a Capital P) CompetitionĪs fewer families can afford homes, investors and investment firms have stepped in to buy up properties - and then rent them out at a premium. And many of those boomer buyers already own homes meaning their home equity is likely helping them make competitive offers. Meaning fewer homes for sale and ever more buyers looking for those small, single-family homes. But as boomers have grown older many have stayed in their homes or looked to downsize. The millennial homeownership rate was on the rise prior to the pandemic. In 2019, millennials edged out baby boomers as the largest living adult generation - just as their appetite for homeownership picked up. Boomers Aren’t Putting Their Homes on the Market In 2020, home prices rose to around $358,700 while median income hangs out around $67,521 aka about one-fifth of the median home price. To put that in perspective, in 1990 the national median home price was around $121,500, or a little more than double the national median income of $50,200. Fast forward to today, average home prices can now be more than seven times the median income. After the housing bubble burst, it fell back down and hovered below six for a few years. Then, just before the market collapsed in 2008, that ratio went up to between six and seven. Homebuyers once enjoyed median home prices around four to five times the average income. According to one analysis, median home prices grew 30% compared to just an 11% increase in median income over the last decade. Home Prices Are (and Have Been) Outpacing Wages And when demand outpaces supply, prices go up. But mortgage rates came back down and the homebuying population kept growing. Which led to a maaajor slowdown in homebuilding.Even as the country recovered and the economy started growing again, homebuilding never picked back up to normal levels. Visit Shawn Lealos' website to learn more about his novel writing and follow him on Twitter More From Shawn S.And when those subprime borrowers couldn’t pay, the lenders went bankrupt, the global banking system collapsed, and we entered the Great Recession.
SUPERHERO BUBBLE EXPLODE SERIES
Shawn is also a published author, with a non-fiction book about the Stephen King Dollar Baby Filmmakers and has begun work on a new fiction series as well.
His work on the Internet has been featured on websites like The Huffington Post, Yahoo Movies, Chud, Renegade Cinema, 411mania, and Sporting News. He has work published in newspapers such as Daily Oklahoman and Oklahoma Gazette and magazines such as Vox Magazine, Loud Magazine, and Inside Sports Magazine. Shawn is a former member of the Society of Professional Journalists and current member of the Oklahoma Film Critics Circle. He has worked as a journalist for over 25 years, first in the world of print journalism before moving to online media as the world changed.
Shawn received his Bachelor's degree in Journalism from the University of Oklahoma with a minor in Film Studies. Lealos is a senior writer on ScreenRant who fell in love with movies in 1989 after going to the theater to see Tim Burton's Batman as his first big screen experience.
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