Young Peoples’ Dreams Of A Home Of Their Own

Apparently the young of today simply aren’t ever going to gain a home of their own.

Young Britons believe dream of owning home is over, survey says

It’s not going to work out that way. Not in the slightest.

One of Britain’s biggest mortgage lenders has found that 70% of young people now believe that the homeownership dream is over for their generation.

Just not how the world works. As Alex Tabarrok has been known to point out. Of the some 30 million dwellings in the country 100% of them are going to be, in a century, owned by someone who is young or even unborn as yet. That is, the ownership of the housing stock is going to rollover. That we can guarantee.

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thammond
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thammond

Been saying this for a while now. There is no way possible (except some medical miracle) that the people owning houses in 30 years time swill be the same people who own houses now. But the for today’s young, if it’s not happening on Friday it’s NEVER happening.

Jonathan Harston
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Jonathan Harston

roll over not rollover. rollover is a noun. You need a verb there.

TD
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TD

I suspect much housing in 30 years will either be owned by people who inherited the old homestead or else inherited sufficient amounts to purchase a house – basically, the children of current homeowners. It’s going to be tougher on those who don’t inherit well – at least if they choose to remain in the more expensive areas. Also, in California and some other US states by law a lot of new housing is being built as below market rate rental housing and is required to remain as such for 30 to 50 years, so a lot of that will… Read more »

Rhoda Klapp
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Rhoda Klapp

If nobody was buying the price would come down. So who is buying? Old people who didn’t have a house? Those young people who actually make an effort? People coming out of the rental market because a permanent residence has become a better option? Immigrants with money?

Or is it all a plot by boomers to stuff millennials?

thammond
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thammond

Not quite right though. As mot homeowners have mortgages, they cannot sell for less than a certain price, often a very sizeable percentage of the price they paid. So in a decent economy, where people are not losing their jobs, but house prices “should” be falling, they will tend not to actually fall. Instead we see low volumes and reduced mobility of workers.