FOR A LARGE NUMBER OF MILLENnials, the generation born between 1981 and 1996, the time to buy a home has never been quite right.
Older millennials were not yet 30 when the financial crisis of 2007-2008 upended the housing market and the US economy, causing the worst downturn in the country since the Great Recession. When younger millennials came of age to buy a home, the US housing market was booming, driven by high demand and low inventory, with prices reaching heights that made properties unaffordable to many.
Despite adverse economic conditions, and tired of waiting for the perfect moment, many got on the property ladder anyway—and their late arrival has shaken up the entire housing market, according to experts.
"Because of the high cost of living, millennials have had to delay marriage, they've had to delay having children. So what's going on is that there's been a delay in household formation, though right now the rate of household formation is double the rate of population growth," Phil Powell, executive director of Indiana University's Business Research Center, told Newsweek.
"What that means is that there is unprecedented demand for housing and that is why housing prices are going up," he added. Millennials, said Powell, "are putting upward pressure on prices and it's going to continue, it's not a fad or some bubble in the housing market. This is real, it's demographic."
They're also not the only generation keeping prices up.
Alejandra Grindal, chief economist at Ned Davis Research, told Newsweek that baby boomers (those born between 1946 and 1964) are also adding price pressure. "They are the second-largest age cohort in the U.S., and they're also driving up demand, partly because they can afford to," she said. Millennials, in 2020, overtook baby boomers to become the largest generation in the U.S.
هذه القصة مأخوذة من طبعة March 22, 2024 من Newsweek Europe.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة March 22, 2024 من Newsweek Europe.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 8500 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
The Fight To Ban Child Marriage
Under-18s can legally wed in most U.S. states but young spouses are often left physically, emotionally and economically vulnerable, campaigners say
Major League Error
Why baseball fans have long thought Ty Cobb to be a racist when he wasn't
The TikTok Election
With both Donald Trump and Joe Biden now on the app, could it help determine the next U.S. president in November?
Failure to Deliver
Multinational companies embraced Chinese factories to lower costs. Their excessive reliance ended up being a central cause of the COVID supply chain meltdown
BEST SPECIALISTS & SURGEONS
FINDING THE BEST MEDICAL SPECIALIST IS A DAUNTING TASK for anyone requiring specific treatment.
SURGEONS MAGIC TOUCH
Americans turn down syringes but go UNDER SCALPELS. What do these doctors know that the rest of medicine doesn't?
ARABIAIAN MIGHT
SAUDI ARABIA'S INCREASING STRENGTH MEANS IT NOW HAS MUCH MORE CLOUT WITH ITS PARTNERS, INCLUDING THE U.S.
Bringing Trump's Trial to Life
Sketch artist Isabelle Brourman tells Newsweek what it was like covering the former president’s court case
Iran Examines the Nuclear Option
Tehran’s rhetoric could spark an arms race in the Middle East like never before
Climate Conviction at What Price?
Fifty years ago experts doubted Americans would pay to save the environment. Only some of their fears are still true