doctorhousingbubble.com / Dr. Housing Bubble / October 31st, 2014
We’ve all heard about the broke Millennials living at home with mom and dad unable to move out into a very expensive rental. For years, we’ve been told that somehow this young group of people would represent some pent up demand to buy homes. This demand never materialized. Instead, you have tight inventory in certain markets being fought over by investors and those willing to pay current prices while stretching their budgets. Yet volume remains incredibly pathetic. The homeownership rate has fallen dramatically and some point the blame to the Millennials. But as it turns out, the big drop has come from those 35 to 44. Generation X overall has been a massive drag on the housing market. The young are simply not buying homes like they once did and many are opting into the rental market. So how big of a drag is Generation X on the housing market?
Generation X and housing
Since the housing market imploded, the homeownership rate in this country has been on a steady decline. Even with the blockbuster year in 2013 in terms of prices, the homeownership rate continues to remain weak. It is probably worth noting that some groups pulled back harder than others. Let us look at those 35 to 44: