Fewer Young Adults Buying Homes, Housing Costs, Low Mortgage Rates
The homeownership rate for young adults ages 25 to 34, which rose from 45 percent in the mid-1990s to a high of 50 percent in 2004, fell to 40 percent as of last year, representing the largest percentage decline in homeownership of any age group over the last ten years [.]
“Low mortgage rates have not prompted many households to buy homes, given expectations. The growing pool of young adults entering their prime apartment-renting years, generally 20 to 34, along with.
"Home sales declined mainly at the end of 2018, when mortgage interest rates increased," says McCue. Even the slightest interest rate increase can add quite a bit to a monthly mortgage payment.
The incomes of young adults have grown modestly since 2000, and fewer young adults are participating in the labor force; contributing to the decline in the homeownership rate. Increases in the number of young adults living in densely- populated metro areas, where housing is more expensive, also depressed the homeownership rate.
· But fewer young adults, millennials, in this case, can afford homes today than 30 years ago.
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The first is a drop in housing prices and the second is low mortgage rates.. less if you buy a home when your local real estate market is below.
· But fewer young adults, millennials, in this case, can afford houses today than 30 years ago.