Scott Turner & Brandon Krampert
\nIn Motion Staff Writer<\/p>\n
Are single generation homes on a downward trend, or is it an end result of economic and social evolution? According to a report from the Pew Research Center, 57 million people are living in multi-generational homes. This number is double the amount of such homes since 1980, and translates to roughly one in four people in the \u2018millennial\u2019 generation living in one now. Renting has also become another popular alternative to owning amongst this generation.<\/p>\n
According to the last American Housing Survey, home sales of first time buyers from 2009-2011 dropped by 22 percent compared to the 2001 survey.<\/p>\n
Is this shift in mentality a result of a single factor, or a multitude of various factors?<\/p>\n
In a study by the Harvard Joint Center for Housing Studies, it was concluded that nearly 30 percent of this age group who could afford to pay to own a home are unable. The most prevalent factors contributing to this are unemployment, stagnant wages, and doubts and questions left over from the housing crisis of 2007-8.<\/p>\n
Another important consideration covered in the study is that unemployment was at 10 percent in 2010, and has continued to stay above 7 percent through 2013 for millennials.<\/p>\n
Student debt is also a huge contributing factor in this equation, since according to the JCHS study roughly 39 percent of millennials have some form of student debt which disallows them from saving up to buy a home.<\/p>\n
The study also found an interesting detail amongst people from ages 25-34, the age range that traditionally buy their first homes, who are renting. The majority of these renters can actually afford to buy a home in more than half of the metro areas in the US.<\/p>\n
The role of financial institutions also contributes to the equation, since their lending policies are an inescapable part of purchasing a home for many people. After the housing crisis, the Federal Reserve adopted a policy of lending trillions of dollars to large banks at an interest rate of .5 percent. The intent was to stimulate the economy by allowing banks to lend to businesses and individuals that would otherwise have access to the funds. These funds have instead lent back to the U.S. Treasury with an interest rate of 2 to 3 percent, making the banks profit but misappropriating the funds.<\/p>\n
The present state of the housing market is a compendium of many different factors, but large portion of it does seem to stem from the predatory lending practices that led to the initial housing collapse and the continued unethical practices by them.<\/p>\n","protected":false},"excerpt":{"rendered":"
Scott Turner & Brandon Krampert In Motion Staff Writer Are single generation homes on a downward trend, or is it an end result of economic and social evolution? According to a report from the Pew Research Center, 57 million people are living in multi-generational homes. This number is double the Continue reading Decline of owning property among millennials<\/span>