Average Age of First-time Homeowners Essay Example for Free

Aver date Age of First-time Homeowners EssayThe U.S. houseownership set fell to the lowest level in 15 years in the first eviscerate of 2012, as borrowers lost homes to foreclosure and tighter inventory and assent kept bargain forers off the market. (Gittelsohn, 2012). The Census Bureau reported a rate dropped to 65.4 sh atomic number 18 from 66 percent in the fourth quarter of 2011. According to the Census Bureau in June 2004 there was a temper of 69.2 rates for homeownership. In 1960 the modal(a) age of a first-time homeowner was 24-25, harmonize to David Berson in the journal headache Economics (Edwards, 2011). Now, the ages at which heap purchase homes are juicyer. The middling age for homeowners was 34, according to the nigh late American Housing Survey data collected in 2009 (Edwards, 2011). There has been a trend toward lease among the unseasoneder generation. A study by the John Burns Real Estate Consulting firm predicts the homeownership rate for people between 25 to 34-years-olds will continue decreasing though 2015 (Walsh, 2012). According to this study the phone number of first-time home buyers has dropped 20 percent since 2009.There is a variety of reasons why young people are not buying homes anymore. People aged 25 to 34 is averaging 8.2 percent unemployment rate (Walsh, 2012). This generation is likewise getting higher-than-ever student loan debt and low wages. Many young people, who have a decent job, are trying to pay down debt instead of getting more. Federal student loans have bloated 360 percent since the root system of the recession, with the average student debt held by someone who graduate in 2010 at $25, 250 (Walsh, 2012).Homes prices are still coitus high to pay. The interest for mortgages are as low as 3.87 percent (reported in February 2012), the lowest levels in the last four decades, but due to the countless loans default in 2000s it made the banks stricter and increased the requirements for mortgages when compared to earlier years. (Edwards, 2011) Also, young people dont see buying a home as enthronisation anymore, they are afraid that their home wont be worth what they paid for in the future.A lot of people used to use terms such(prenominal) as starter home, to buy their first home, own it for a few years, resell it and make a profit out of it, indeed to move into their dream home. Due to the economy crash and the employment rate so high on younger ages, younger people no longer see purchasing a home as a good investment. They are afraid that they might miss their job and have to move or not be able to afford their home anymore. As time keeps moving on, young people are more afraid in buying, they are afraid that their property will lose its value and unable to get any type of money natural covering if they decide to sell. According to the investigate done by Grace Bucchianeri, Homeowners are not happier because of financial stress.Other reasons such as the average age of mar riage may influence a decision of purchasing a home. The average age of marriage is currently 26.1, according to the U. S Bureau of Census. This is a huge jump compare to 1960 which the average marriage age was 20.3. The young generation seems to be more focus in other things that qualification a family and settle down. The U.S. apartment vacancy rate fell to 4.9 percent in the first quarter of 2012. In 2011 the rate was 9.7 percent for vacancy rate. There has been a dramatic increase on rentals according to the Census Bureau. With this big growth in apartment rentals, the multifamily housing development in June 2012 was up 63 percent from a year earlier. The industry is expected to hit over 1 million naked as a jaybird apartments by 2015 (Walsh, 2012). Young people opt in to do short leases because they want and like the flexibleness to pick up if a job arises or in the worst case scenario move blanket home if their job is eliminated.Some people believe that buying a house is a scratch off of time and money. People think that renting a period of 30 years you might surrender the money you are putting down for the house and all the money for the closing cost, maintenance and so on. It could save you up to $90,000 in a 30 years lap if you only rent a property (Stoffel, 2012). For some people there is stuff that money cant buy such as stability or emotional benefits. At the end it depends on the person and the type of emotional state they decide to have. Some people hate commitments other people have a dream of having a house and owning a piece of territory. In a recent study done by Brian J. McCabe from newborn York University, shows that people that own their home are more likely to vote compare to renters.Homeowners feel stronger ties to their communities. They are willing to participate more in organizations that could benefit their community. It shows that the homeownership is mediated by both stability and income. It is possible that citizens most l ikely to become involved in civic affairs are also those most likely to become homeowners. According to some researchers, the market will turn aroundeventually. The young people will start getting older and will settle down. They will start getting unify and forming a family and would like to be part of a community. When the house buying market starts increasing the back requirements will start loosen up. Banks will be more flexible when making loans.Works CitedBucchianeri, G. W. (2011). The American Dream of The American Dilusion? The Private and External Benefits of Homeownership , 1-38. Edwards, E. (2011, October 11). The Universe. Retrieved August 2, 2012, from http//universe.byu.edu Gittelsohn, J. (2012, April 30). Bloomberg. Retrieved June 2, 2012, from Bloomberg News http//www.bloomberg.com McCabe, B. J. (2011). Are Homeowners Better Citizens? 1-47.Stoffel, B. (2012, March 8). DailyFinance. Retrieved June 2, 2012, from http//dailyfinance.com Walsh, M. (2012, July 16). commu nication channel Week. Retrieved July 2, 2012, from http//businessweek.com