Why US home ownership has declined so dramatically among young people

Why US home ownership has declined so dramatically among young people

Fed article on home ownership

Just 36% of Americans aged 24-32 owned a home in 2014 compared to 45% in 2005 — a nine percentage point drop.

Many people think the reason is rising student debt. In that decade, average student loan burdens have doubled to $10,000 from $5,000. However the Fed isn’t so sure that’s the main reason for the drop in home ownership.

“We estimate that roughly 20 percent of the decline in homeownership
among young adults can be attributed to their increased student loan debts
since 2005,” they write in a report today.

I would guess it’s higher than that but you can read the study for yourself.

   

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