Here's a neat ditty from the Vice Money people on millennials and home buying that points out the dilemma posed by high rents and even higher home prices. But it should be noted that job and income growth, indeed the entire U.S. economy, have been stuck in a rut for the past 10 years. Some millennials may vaguely recall the go-go 1990s, but they have yet to experience anything like that in their adult lives. When jobs grow and incomes rise, fear tends to fade.
Millennials are the patient generation — but not necessarily by choice.
In 1960 America, the median age for a first marriage was 20 for women and 23 for men. Today, it’s 27 and 29, respectively, according to the latest census data.
They’re having kids later in life, too. The CDC reports the age of a first-time mom, 26.3, has risen by nearly a year and a half since 2000.Millennials aren’t buying houses at the rate other generations did. In the fourth quarter of 2016, the homeownership rate among Americans under 35 was 34.7 percent. In 1980, it was 43.8 percent. That decline is a major reason the overall homeownership rate in the US, 63.7 percent, is hovering near a 50-year low.
Instead of buying houses, millennials are either living with family members or, more likely, stuck in the rental market. This surge in renters, coupled with a slowdown in rental-property construction associated with the Great Recession, has caused rents to soar. In 2014, data from the American Community Survey showed that 21.3 million Americans were paying more than 30 percent of their income in rent, an all-time high.