A Generation of Renters

by 11 Jun 2012

(TheNicheReport) -- While many people used to dream of homeownership, this is no longer the case today. In fact, many people no longer think that homeownership is even in their future. Instead, people today are more focused on chasing after jobs, even if it means moving around. This is especially true for anyone who was born between 1975 and 1995.  These folks are plagued with a high rate of unemployment and career issues that has caused them to delay getting married and have children. Of course, this is bound to alter communities and redefine what it means to be part of the successful middle class since homeownership has always been a part of the American dream in the past.

The fact that homes’ values are less than what people paid for them isn't helping either. This has actually led many prominent sociologists to come to the belief that we are now seeing the creation of a new generation: One that is composed mainly of renters due to the fact that many people no longer see homeownerships as a benchmark of economic stability. These people seemingly perceive that homeownership is not only out of reach but that it’s also quite frustrating to be a homeowner today.

Communities are preparing for more people who want to rent versus own, and therefore have less of a base. These same communities will need to create more multi-family housing.  All is not lost, businesses are bound to find their way into these communities since they are known for going where consumers live.  It’s also important for these communities to take notice of changing trends because these folks are eventually going to buy homes, and when they do, these communities are going to need them to stay there so that they can get their property taxes paid.

Admittedly it’s unfortunate that everything has to take a backseat today because of the poor economy. This ultimately transfers into people being older whenever they do anything for the first time – from graduating from college to getting married and starting a family. Basically everything is being pushed back until the finances can be straightened out. In the end this may be a good thing though since it means that people will be more stable and thus start viewing homeownership as more of an investment opportunity.


Should CFPB have more supervision over credit agencies?