MILLENNIALS: Looking at Ways to Increase Millennial Homeownership.
The homeownership rate for millennials (ages 25-34) was 37 percent in 2015, or nearly 8 percentage points lower than that of the two previous generations (Gen X and Baby boomers) at the same age. In a new paper, the Urban Institute, Washington, D.C., quantifies the factors that impact Millennials' lower homeownership rate and explores ways to increase Millennial homeownership opportunities.
The paper, Millennial Homeownership, Why Is It So Low, and How Can We Increase It?, authored by Jung Hyun Choi, Jun Zhu, Laurie Goodman, Bhargavi Ganesh and Sarah Strochak, identifies several factors that have kept Millennial homeownership at lower rates than previous cohorts:
--Delayed marriage: being married increases the probability of owning a home by 18 percentage points, after accounting for other factors such as age, income, race/ethnicity and education. If the marriage rate in 2015 had been the same as it was in 1990, the millennial homeownership rate would be about 5 percentage points higher.
--Greater racial diversity: because non-Hispanic white households have higher homeownership rates than all other racial groups, the increasing diversity of millennials contributes to the lower homeownership rate as well. If the racial composition in 2015 had been the same as it was in 1990, the millennial homeownership rate would be 2.6 percentage points higher.
--Increased education debt: a 1 percent increase in education loan debt decreases the likelihood of owning a home by 0.15 percentage points.
--Increased rents: a 1 percent increase in a household's rent-to-income ratio decreases the likelihood of homeownership by 0.07 percentage points.
--Delayed child-bearing: for those who are married, having a child increases the probability of owning a home 6.2 percentage points, after accounting for other factors such as age, income, race/ethnicity and education.
Continue Reading The Full Article on our Facebook Page.
For More NEWS!