July 23rd, 2013 3:34 PM by Stephen McClain
I just read an article out of Builder Update, an online daily newsletter I receive. The article is via USA Today and is titled “The housing rebound’s still- unanswered question ….Y”? In short the article addresses the question why the age group of 25-34 has had the most significant drop in homeownership of any age group from 2006-2011? See the graph :
While all age groups show a decline, and that should be nothing surprising if you have paid any attention at all to our economy these last few years, a 7% drop does standout and should signal a red flag for the future of homebuilding and real estate. After all this age group is the future of stability over the next 20-30 years as they age, take on marriage, start and raise their families, need more space, grow in their careers, etc. At least that is the tradition. But with the current state of our economy and our government hard at work for the good will of the people, you have to stop and wonderThis is not rocket science. This age group is also the same age group holding the largest amount of outstanding Student Loan debt in our history. It is also the largest sector or age group of full time professionals or those with a college degree who are currently unemployed or working jobs way lower scaled than their college degrees/education qualify them for. Too much debt and not enough income mean the inability to qualify for a mortgage.
If we want to see this age group support the housing rebound and stabilize it over the next 2 decades, we need to get them working full time at the levels and jobs they were educated for and we, the government and / or public sector, need to implement programs to reduce their student loan debt so they can invest their income earned dollars in assets such as housing. I believe this generation -the Y Generation, still supports the dream of homeownership. Together we can figure this out.
S. B. McClain, Cornerstone New Home Solutions
Stephen B. McClain is the licensed Broker Owner of Cornerstone New Home Solutions. He is also a certified instructor for the Texas Real Estate Commission under Champions School of Real Estate. He has a career spanning over 30 years in homebuilding and real estate. He can be reached at smcclain@cornerstonenewhomesolutions.com.