In the Wake of the Housing Bust, Fewer Young Homeowners
This article discusses the further growing impact of the Great Recession on the housing market. Home ownership among Americans and young people in general is down from where it was 9 years ago, about 4%. This might not seem like much, but even with the housing market making up only taking up 5% of our GDP, we have seen the affect this sector can have on the overall economy. The article suggests two reasons for this decline in young home ownership: foreclosures have forced people to become renters, and tight lending agreements mixed with weak labor markets. Robert Dietz suggests that the government needs to tread lightly in upcoming policy making decisions concerning the housing market in order to prevent long-term damage. This article is especially critical to our age group because we might soon be looking for homes and the policies regarding loaning and housing made now will affect us in the future.
Another important reason for the decline in home ownership is the fact that fertility rates have seen a decline since the recession. Typically, young adults who are married with children are the ones purchasing homes. With these numbers continually decreasing, a recovery of the housing market is not looking to happen anytime in the near future.
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