The housing bust had affected a number of Americans that belonged to the Generation X. This conclusion was based on the federal data analysis, which suggested that the rate of homeownership for the said group was likely to remain low in the coming years.
The housing flop could be attributed to the easily acquireable mortgages and the loose financial housing market, which stirred up the levels of home purchasing up to the period when the financial system lost control. The outcome became even worse when the collapse of the market housing followed, a report from the Wall Street Journal stated.
Future housing market, on the other hand, is centered on the millennials, or those who were born between the years 1985 to 2004, as indicated in the study made the by Harvard Center. According to the research, this group tends to live with their parents which results in delaying marriage, a requirement for a long-term trend in homeownership. However, the efforts of Generation X are likely to interfere with the usual patterns of real estate, as the housing market is seen as an advancement through time. This was back when a younger generation began to rent, have enough savings to purchase houses, and trade up to a much attractive home.
The problem became worse because the number of Generation X is smaller, which is around 83 million compared to the 87 million Millenials. Reportedly, millenials are believed to increase by 93 million in 2025 because of immigration, while the Generation X population is expected to remain, according to a feature from DS News.
A study conducted by the National Association of Realtors last year also said that an estimated number of buyers who have undergone foreclosures or distressed sales has recorded a total of 9 million between 2006 to 2014, which is expected not to go back to homeownership.
Housing problems among a lot of people who have lost their homes due to short sales or foreclosures may have to wait long before being considered again by lenders. Three years for the short sale and up to seven years for the foreclosures. Although several Generation X rental residents have been forced to the sidelines, a few have chosen not to participate.
