The Federal Reserve says there has been an obvious drop-off in home buying for single people under 40-years old. Analysis shows that in the 20-year period amid 1980 and 2000, 20-something people buying homes sank from 43% to 38%. Would-be buyers in their forties sank in home ownership from 61% to 55%. Both groups took another hit during that past year’s recession, where Federal Reserve reporting says, both of the groups cited above, was further reduced by half.
Even with government help in paying them off, experts say that the student loan factor is a huge constraint to home ownership. And while there are more reasons than that, Bloomberg Business reports that there is currently a combined trillion dollars in outstanding student loan debt. This debt has hopeful buyers waiting to buy a home until they can get a better job and payoff their student loan.
Joblessness has also added to deteriorating home sales for this demographic. Employment figures are gradually improving. It is suspected that once unemployed percentages fall to a more manageable ratio and more jobs are added, specialists tell us that home buying for the under -forty gang will go up. But for now, having job security is essential for buying a home.
Another interesting fact is that home ownership is somewhat based on marriage statistics. Really. Until marriage stats go up, look for singles to rent. It’s simple when you think about it. The single individual has to accept the costs of student loans, car payments, and monthly bills. Throw in a mortgage and perhaps homeowner association fees on top of the usual bills, and buying a home is difficult. Married folks usually have two-incomes; pooling both paychecks makes the costs of homeownership less difficult in today’s iffy times.
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