Homeownership rates continue to be at a 50 year low, even with high job rates and low interest rates. There are several reasons for this; affordability, student loan debt, credit issues and low inventory of homes. Even though the individuals seem to be better off financially at this point in time, these specific hurdles keep them from purchasing any property.
Since the recession of 2008, home ownership rates have steadily decreased. Another reason people have admitted to not buying a property is that they or somebody they know lost their home or business to foreclosure after the recession. That kind of financial turmoil is too much to fathom for many Americans, and they aim to avoid it at all costs.
Another major effect of the 2008 Recession is the fact that credit scores are now valued differently when deciding things like mortgage rates. Young people with good credit scores are not getting approved for the same low mortgage rates that they would’ve received 10 years ago. This is unfortunately a result of the economy and has little to do with the individual.
As for all the millennials, college tuition continues to rise year after year and puts countless students in heaps of debt. Since these young adults are under so much pressure to pay off their debt on a monthly basis, they cannot afford mortgages.
Single-family housing affordability and supply are also extremely low in today’s markets. There are not enough properties for single families to live in with increased migration and job growth, especially in U.S. cities. In addition to low inventory, the cost of single family housing has risen to heights that most single families cannot afford.
If any of these issues are of concern to you, contact a BridgeView agent today to discuss your options!