Better job growth and bigger wage gains will change the ‘rent, not own’ dynamic
According to Wall Street Journal real estate reporter Kathleen Madigan, the housing market’s recovery depends on the hiring and paychecks of Millennials.
Research by financial holding company Nomura found that the median income for households headed by 25- to 34-year-olds fell from $51,728 in 2007 to $43,625 in 2013. Lower incomes have made it more difficult for this age group to save a down payment and to qualify for a mortgage.
Another roadblock for homeownership is increasing rent, which many Millennials opt for because of the more affordable up-front costs.