Many Young People Not Buying Homes

Once upon a time you went to school, started a career, got married and bought a house. It was sort of like a template for life in the United States and a lot of young people strove to achieve each of those milestones. Today, the template and, more so, the grid that we lay it upon has changed dramatically. Recessions and bursting housing bubbles, struggling economies and overwhelming student debt are only a few of the major transitions that America has seen in the last decade. These changes have a variety of ripple effects on people's lives and one effect is that fewer young people are purchasing homes.

According to a February 2012 article in The Atlantic, half as many young people were getting mortgages between 2009 and 2011 compared to ten years earlier.  The article cites a range of reasons for fewer young homeowners including higher student debts, fewer marriages, decreased earnings and a recognition that many people lost big time investing in real estate. It's no wonder that these factors influence entire generations who might otherwise have walked the path of home ownership like their parents before them and their parents before them.

One young person who wrote into The Atlantic stating their reason for not purchasing a home said, "My generation wants more freedom to travel, to see and live in new places and to experience new cultures. In general, buying a home can seem like a rejection of freedom, and anytime one of my friends gets a home, I just can't help but think how restricted they now are, whether that's true or not." This implies a shift of priorities for younger generations, perhaps moving away from security and towards excitement.

Another respondent said, "I wish I had bought straight out of college. (...) Home ownership is a big commitment, but in my opinion renting is financial suicide." In this person's case, buying made more sense, especially after they spent years paying rent and still had no place to live unless they continued to shell out the monthly payment.

Ultimately buying a home, like most things, boils down to personal situation and preference. A young, single person loaded with student debt who likes flexibility may hate home ownership. On the other hand, young people who have graduated, found a good job and intend to stay put for a while could benefit from purchasing a home and building equity rather than giving their hard earned money to a landlord each month.

If you're considering buying or selling real estate in the East Lansing area, please get in touch with me at MyRealtorRob. With Michigan State University as something of a hub in our community, we have a lot of students and student families who like to purchase while they attend school. If that sounds like you and you would like to learn about the affordable East Lansing housing in the area, send me an email.