Younger Generations Are Staying Away From the Housing Market—Here’s Why
Amidst rising inflation, a shaky economy, mounting student debt payments, and a volatile housing market, younger generations are feeling a major financial strain. A new survey from Deloitte found that high cost of living is the "top societal concern" among Generation Z and Millennials, and more than half of both generations said they currently live paycheck to paycheck, Insider reports.
That economic anxiety ultimately trickles down to the housing market as well, where fewer first-time buyers can afford to purchase a shrinking supply of starter homes. Americans are buying homes later in life and for much more money than in past years (and decades), and in many cases, Gen Z and Millennials are the largest demographic cohorts left behind.
There are lots of possible causes for this economic anxiety to point to. From a shaky economy to student debt, to general inflation and spiking healthcare costs, there's lots to be worried about.
But there's arguably no bigger factor than housing.
"I think if you talk to people my age or younger who are salty about capitalism,' two things have really driven their discontent," influential writer and geriatric millennial Matt Yglesias noted earlier this year. "One was the long, weak labor market in the wake of the Great Recession, and the other is how badly the housing market functions."