Americans Want Homeownership, But There are Challenges
A recent Harvard study shows that an overwhelming majority of American believe homeownership is a wise financial move. 78% of household heads agreed or strongly agreed with the statement: "I think homeownership is an excellent investment." And to add to that, 85% of renters under age 30, and 69% of renters aged 30-39 expect to become home owners one day.
Problem is, these want-to-be renters are burdened by their current housing costs. The number of renter households that pay more than 30% of income for housing rose from 17.7 million to 21.3 million from 2008 to 2014, a 17% increase. Even more disturbing, the number with severe burdens (paying more than 50% of income for housing) jumped by 2.1 million to a record 11.4 million.
Add on the substantial student loan debt and stagnant wages many of these young renters face and it becomes difficult for many of them to save for a down payment. We now understand why over 1/3 of millennials still live at home.
Click here for the full report of the State of the Nation's Housing.