NOTEBOOK – One Good Read: Is homeownership out of reach for young adults?
KATHY A. BOLTEN Jul 30, 2019 | 8:14 pm
1 min read time
195 wordsArts and Culture, Business Record Insider, The Insider NotebookAs a parent, you always worry about your children, even when they are adults. My three are young adults; one has achieved the American dream of buying a house. The other two aren’t quite ready to make that leap, and after reading a recent Wall Street Journal piece by Christina Rexrode, I fret whether homeownership will be out of their reach. Rexrode writes that many young adults are stretched financially because they are paying off hefty student loans and paying increasingly higher rents on salaries that started at the low end because of the recession. Consequently, Rexrode writes, little is left for saving for a down payment on a house. According to data Rexrode cites from the National Association of Realtors, the median age of a homebuyer is now 46, the highest it’s been in more than three decades of collecting the data. In addition, the average price nationally for starter homes for first-time homebuyers rose 64% between 2012 and 2018, pushing thousands of people out of the market. “Lower homeownership for young adults means lower economic growth,” Sam Khater, chief economist of mortgage-finance giant Freddie Mac, told Rexrode. “That’s it in a nutshell.”