The generation X or sometimes called the millennials is now called the generation rent because most of the young adults these days are renting their own place.
Realty Biz News says that home ownership rates have decreased since 2005. This fact is ascribed to the Millennials failing to climb on the property ladder. According to the report, Generation X is largely to take the blame.
Based on the report of the Harvard's State of the Nation's Housing, people who own a house from the age group of 35 and 54 have decreased far more than any other age bracket since 1993. The predominant age is those under 44 years old. They say that the decline of purchasing home in this particular age group is may be because it was at this time that the real estate industry was at its peak. Those who are older member of Generation X who could buy a bigger house held back in buying because the housing crisis had just begun.
In addition to the fact cited above, CNBC says though housing industry is getting better nowadays with low down payment and very minimal interest rate. Still the young adult of this generation could not give a down payment because most are simply receiving an entry level salary, and their paycheck mostly goes to their rent. "Housing has a 'millennial mismatch': Young adults tend to live in markets where home ownership is less affordable to them," wrote Jed Kolko, chief economist at Trulia. So it is not that they choose to rent but they are faced with the reality between expenses and savings.
Yahoo Finance stated another obvious reason why Millennials are not buying homes. According to the report, it is hard to get a loan when one is in debt and only receives a lower wage.
