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The ability to buy a house has become increasingly difficult in the United States in recent years, and some experts have been concerned about long-term impact on young adults, who currently have a higher hill to climb to achieve The American dream that previous generations.
“The increase in interest rates, the inflated prices of houses and stagnant wages require a lot of a lifetime rental cycle, where building equity feels more and more out of reach,” said the investor Real estate Lori Graymont. “Without strategic quarters, we look at an entire generation to make an American dream price.”
It is much more difficult to buy a house in the United States than what is in the past. This has experts concerned about young American adults. (Tammy ljungblad / The Kansas City Star / Tribune News Service via Getty Images / Getty Images)
Dr. David Phelps, a financial expert and founder of the community Freedom Investing Community Real Estate, told Fox Business that if some people said that generation Z was lazy and right when they complain about housing cost today Hui, he doesn’t think it’s precise.
“Generation Z is correct – the accommodation has absolutely become unaffordable for a large part of our population, in particular this generation,” said Phelps. “Salaries have not followed inflation or the rapid increase in house costs, and it is even before taking into account the increase in interest rates and the tightening of subscription directives.”
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Phelps said that on the basis of the average salary in the United States, a house buyer can afford a house that costs $ 110,928, which is a fraction of the median price of $ 420,400 today.
“In other words, it is not only a question of making coffee at home and jumping the toast to the lawyer,” he said. “Mathematics do not work for Gen Z.”
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Tom Spaeth, owner of Easal Properties, said that in the past 10 years, the offer of houses that young families on a median income could afford to buy has gone from 50% of the houses available to only 15 % as house prices and mortgages interest rates have increased.
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He said it happened “while major institutional investors buy a record number of houses, forcing young families to rent in lower quality neighborhoods, disturbing the education of their children, increasing the financial stress of families and creating housing instability “.
The realization of the American dream has become more and more difficult in recent years. (Photographer: David Ryder / Bloomberg via Getty Images / Getty Images)
The psychotherapist and author Jonathan Alpert says that the crisis of affordability of housing is not only a matter of economy – this also has a serious psychological number for young adults.
“Many Zers have anxiety, frustration and feelings of failure when they find it difficult to achieve what previous generations considered a rite of passage,” said Alpert. “Having a house has long been linked to stability and success, so when it feels out of reach, it can lead to self -doubt and a feeling of being” stuck “in life”.
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Alpert says that he hopes that, as economic conditions change, the opportunities will open.
“In the meantime,” he told Fox Business. “Resilience, adaptability and a change of story around this subject are crucial to navigating these challenges.”
