It’s not necessarily easy to buy a house today, especially for younger generations. Wages aren’t keeping up with the rising home prices and the median age of a homebuyer is at its oldest since the National Association Realtors started tracking in the 1980s.
Economists say it’s the aftermath of the financial crisis. Young adults who came of age during the crisis and are now looking to buy homes are quickly realizing they’re priced out of the market. Although mortgage rates are considered low, economists say young adults often can’t afford the down payment.
And some are starting to wonder if that could have larger implications on the general economy by reshaping numerous decisions young adults make, including their willingness to spend, the places their willing to move to, and whether or not to have children.
But some argue the problem is completely overstated and isn’t tied to one specific generation. And housing supply could be the real culprit behind the issue.
Larry sits down with two economists to discuss the issue and what it could mean for the future.
Have you had trouble buying a home? Join the conversation and share your experience.
Richard Green, housing policy expert; director of Lusk Center for Real Estate Chair at USC; former senior advisor at the Department of Housing and Urban Development under the Obama administration.
Christopher Thornberg, founding partner of Beacon Economics, his focus includes economic forecasting, employment and labor markets and economic policy