Interest rates have hit historic lows and home prices have fallen, making real estate a buyers’ market. But one important segment of potential buyers is not ready to sign on the dotted line: young adults.
The number of 25-to-34-year-olds owning homes in Massachusetts plunged 20 percent between 2005 and 2010, even as the overall number of homeowners in the state increased slightly, according to the US census. The rate of homeownership, which measures the percentage of housing units occupied by owners, fell more for 25-to-34-year-olds than any other age group, declining to 34 percent from 40 percent in 2005.
Comments
Young folks today can make a much better investment with their money than purchasing a home after paying a large amount (if not all) of their savings. It is unlikely that they will realize the asset appreciation that my parents did, or even that those of my age did.
Wish I hadn't bought a home either. All these mortgage bailouts for people who didn't pay their mortgages have made my home worthless and my mortgage not able to be refinanced at these historic low rates. Thanks to everyone who bought houses they couldn't afford and the government who lowed their principle and interest so they could keep them. Someday no one will bother to buy a home and we will all rent from the government.
I did buy a condominium home but not until I was 34. I am here with my 25 year old.I have only one friend with young adult children who doesn't have one living at home although in an age of many single parents who don't mind that the kid is there it would not be unusual anyway. But the main problem in terms of household formation is that the younger generation is smaller than the older one so not as many homes will be needed anyway.
Buying a home in a good school district close to the city is not possible for anything less than 600k. That home most likely needs work and the reason moving my family out of the state.
Interestingly politicians on both sides are seriously considering getting rid of the mortgage interest deduction for federal taxes. If that would be done, the pain would be felt most my people who have purchased expensive homes with big payments. I think it would be unfair because they were not counting on that when they bought the home. You could lose five thousand dollars per year or more. Or another way to look at it would be that your tax bill would rise by $5000. Yikes!!