Why Aren't Young People Buying More Houses?

[oladub]

This is a relatively apolitical article presenting a list of reasons based more on sociology and economic situations than political reasons for why young people are more likely to rent. Some of the follow up comments are worthwhile too.

The End of Ownership: Why Aren't Young People Buying More Houses?
-The Atlantic

[Occurrence]

Even if I had the money to do so, I still wouldn't buy a house. Too much headache and risk.

[old guy]

My son would love to buy a house or a piece of property. He's employed and has been steadily employed since he was 18. He's 27 now. He has an excellent work record and a great work ethic. He knows the president of our local bank and probably most of the loan officers and board members. He'd like to buy something modest and has the means, knowledge and equipment to do large improvements. The problem is, the bank just won't lend money. He doesn't have bad credit, but he doesn't have any credit so it's a problem.

He can afford to put a decent down payment on something modest, but it's almost like the bank wants him to buy something he can't really afford. Or, doesn't really want. He's always saved money to buy things for cash like vehicles or boats that weren't new, but in good shape.

He knows what he wants and what he can afford, but it's like the banks penalize him for having common sense.
It's a tough time for people of his age.

[rb336]

Personally, the idea of home-ownership makes me feel trapped. As an adult, I've never lived in one place more than 10 years [[my current circumstance), and usually it's around 5 between moves. I guess i'm nomadic at heart. I also like the idea of saying "the shingles got blown off during the last form -- you need to fix that!" to someone besides my bank account

[oladub]

I have a son living on the edge of downtown Minneapolis who bought at the worst possible time although location, location, location has meant that he is only about 10% underwater. There were a large number of high rise condo developments going up in his neighborhood until the economy took a hit. Fewer were built after that. However, he says that a large number of projects have started up again but this time they are all apartments rather than condos and Whole Foods is moving downtown. The only reason I mention Whole Foods is because there was some talk here about a new Detroit Whole Foods. Maybe that company has found a new yuppie urban hipster market. Anyway, apartment construction is replacing condo construction consistent with this article.

[Downtown Lady]

Hi Old Guy -- I sent you a private message.

[GOAT]

Slacker mentality?

They don't get their back scratched when they apply for the loan?

They want it all fixed up and pay nothing for it?

Most don't have a decent paying job [[middle class jobs are long gone and careers aren't what they used to be unless you like the albatross of higher education debt).)

The last paragraph certainly isn't their fault. The boomers fucked up royally when they took control. I would much rather have had grandparents running the show than the boomers.

[ordinary]

Maybe the younger people are smarter than we give them credit for and realize that home ownership is a pain and can be a real trap. I remember my poor dad working endlessly on the house and muttering that if he had to do it over again, he would "live in a tent!" Many people would tell me that when you rented, you were just throwing money away but how much money is spent on interest over the course of a 30 year mortgage?
After reading old guy's post about his son, it makes me wonder what game these banks are playing. It seems that they want you to get in over your head!

[hairman]

Don't use a bank. Try a credit union or land contract.

[ordinary]

Welcome to the forum. I did go with a land contract back in 1984 and it was a good move. Interest rates were around 17% back then and we figured we were doing good at 11%. But it was still a struggle to keep up with the payments.

[wolverine]

I can live like a king in a beautiful downtown apartment. Not have to worry about maintenance and utilities and up and leave whenever I feel like it. This is why I'll be renting for a very long time

[GUSHI]

House to me only make sense for when you have a family, until then they are pointless,,,,,,