Gen Xers Choose to Rent rather than Buy

February 05, 2014 — Beverley BevenFlorez-CDJ STAFF
David Crowe reported in Big Builder that the rate of home purchases by Gen Xers is low due to “challenges” they face caused by the recent recession. According to the article, “The headship rate rises from 16 percent to 48 percent in this age group—known as Generation X—as they finish college and become financially independent. There are 42.5 million people in this age range, and they are followed by 43.9 million in the 15 to 24 age cohort.” However, the recession forced many Gen Xers to postpone “independent living, marriage, and children. Birth rates hit all-time lows in 2012 (half the level of the baby boom), and marriage rates are the lowest they’ve been in a century.” Unemployment seems to be the major factor in why many Gen Xers are choosing to live with parents or rent instead of buying a home. Crowe stated, “Young adults continue to express the goal of owning their own homes, but many are faced with challenges such as job availability, tight credit standards, inadequate savings for a down payment, student debt, and careers that are likely to require moves.” However, the “employment picture is expected to improve.” Read the full story...