According to theREsource.tv, between March 2013 and April 2014, about 400,000 households were formed. However, only 100,000 of those were new homeowners, while the other 300,000 were renters. This gives us a brief took into the changing real estate market.
This is partially due to the low inventory and high competition of foreign cash buyers. The idea of homeownership is not appealing to the generation of young adults that are finishing school. The “Millennial” generation is more content to renting because of the financial struggles.
The “Millennial” generation also affects their parents’ decisions to purchase another home. The “Baby-Boomers” generation is struggling to get by so they have no interest in moving while still having to support their children who are struggling to find a job after school.
The foreign cash flow, competition in a low inventory market, massive student debt, and troubling unemployment has created the perfect storm of renters. The homeownership dream is no longer a priority for the younger generation. The focus needs to be changed to support the renters or promotion homeownership among young adults.
Watch the full, entertaining, and informative video here: http://www.theresource.tv/archives/lost-generation-buyers/