The dream of homeownership seems like it isn't one that many millennials are having, or are we? In 2015, homeownership hit its lowest point in 48 years. Homeownership is a big part of the economy and seeing the numbers this low is startling for any economist. Millennials are predominantly the cause of the downturn, but it may be something unexpected going on behind the scenes that are affecting the numbers.
We’re simply choosing to sacrifice many of the things that other generations chose to take on earlier in life, so that we can build a more secure life in our later years. The focus of this generation is more career driven early on rather than putting an emphasis on the traditional family structure of the past. It’s not that we are not interested in having families. We just have other plans first.
If you don't think women run the world, you might want to take a look at what I think could be leading the change we see in the housing market with millennials. In 1970, people were likely to have been married by the age of 24. In fact, it was considered odd for a woman to not be married by age 31. Close to 95% of women were married by 30, but things are different now. More than twice as many women are going to college than at that point in time.
Staving off to achieve higher education is a good thing regardless of gender. That's what will make the diffence going into the next generation. Sure it can lead to a host of other bills for many millennials, but it is a pathway to greater financial stability long-term. Which means that we ARE thinking about the future. We are just looking at it through a much broader lens.
I have no doubt that homeownership is still possible for us. I wouldn't be surprised to see a spike in homeownership several years from now that'll counteract the down slide when millennials surpass the age where they are financially stable enough to purchase homes. The enhanced stability will also make a stronger and secure housing market.