Why can’t Gen-Y get us out of the housing crisis?

Posted by Steve Kleber on Nov 15, 2010

Generation Y, or the Boomer Babies, were born during the 1980s and into the 1990s.  They are often described by previous generations as technology-dependent, attention-craving, underachievers. It is also thought by some that Gen-Y should help fix our economy by purchasing houses to help America out of its crisis. Maybe that’s just not possible… at least right now.

It has been instilled in many of us that a house is a necessary investment. Typical life steps are generally thought of as follows: go to college, get a job that will last you until retirement, get married, buy a home and start a family. In the ‘80s, you could purchase a house and support a family on an annual income of $48,000-50,000. Now these next generations need to earn upwards of $142,000 to meet that same goal. According to the Project on Student Debt, the average student owes $21,000 right out of college. The unemployment rate for Gen-Y is 30 percent – that’s more than three times the national average. The “American Dream” just isn’t what it used to be.

That’s not to say Gen-Y will be renters forever, they just have different concerns when looking for places to live. The suburbs are a thing of the past. Commuting is something your parents did. Gen-Y is looking for affordable homes that are eco-friendly and convenient. Buying a home is now more of a lifestyle choice than a necessity.

Gen-Y is the largest demographic America has seen, even bigger than the Baby Boomers.  They are capable of getting America out of the housing crisis and they very well might…but they’re picky. Eco-friendly, technologically advanced houses are no longer a thing of the future.

This entry was posted by Steve Kleber on Monday, November 15th, 2010 at 11:59 am and is filed under Housing Market, Research. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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  1. Gen Y buyer says:

    Gen Y is NOT capable of bailing out their parents. The real reason we are in a housing crisis is because of the actions (or inaction) of our parents who just happen to be baby boomers. The boomers have allowed college costs to get completely out of hand while they were able to work and pay to go to school. The boomers are going to be the last generation to get social security while their kids pay into that ponzi scheme, even John McCain has said that he takes his social security and he doesn’t need it! Many people in my generation only have low paying jobs to look forward to. For those like myself who do have good wages, childcare, student loan debt, soaring medical costs, and higher insurance costs have pretty much guaranteed that I will not be bailing out the boomers. Let it crash. Just because we are a large generation doesn’t mean that we are able to bail out the country. Many profits have already been made off of my generation. America has sold out it’s youth and this is the result. You can’t blame this one on the “lazy generation Y” this time.