REALTOR Magazine
The rising cost of housing is the biggest hurdle for young prospective buyers to overcome, according to new research from Freddie Mac. Home prices are rising faster than incomes, and the lag in young adult homeownership rates will likely continue until 2025, Freddie Mac notes.
The homeownership rate among those under the age of 35 has fallen 8 percent since reaching a peak in 2004. Freddie Mac’s analysis reveals that higher rents and home prices are the primary reason for the decline in young homeowners (49 percent), followed by lower marriage and fertility rates (22 percent), and a likely combination of student debt, a preference toward renting, borrowing constraints and other factors (13 percent).
