When most adults today hear the statement “I Have a Dream,” thoughts generally relate Martin Luther King’s speech and aspirations for equality, however the American Dream of home ownership may be just as distant today as equality was in the 60’s. The concept of families becoming “Career Renters” seems to be more the norm as debt load among young professional adults seems to be at an all-time high.
The majority of college graduates today, particularly those who complete a second degree program, are burdened with ever-rising student debt. And the cost of home ownership, even with amazingly low interest rates, just seems too distant for many who don’t have the good fortune of wealthy parents or the bonus jobs they thought would await them out of college.
Home ownership is one of the great pie-in-the-sky promises many baby boomers could look forward to after a successful college experience. However, today new banking and loan requirements create ever-higher hurdles for those without a big down payment or a large paycheck.
Renting just doesn’t seem to be the negative stigma today for youth or many adults. Rents have become comparable to mortgage payments, and many strings hamper the formerly easy path to ownership. Additionally the ease of the mobile culture and incentives for apartments in urban environments have an appeal that the “throw-away” of “disposable” culture appreciate.
Many young adults don’t want the responsibilities that home ownership requires. Jobs and careers don’t have the same long-term commitments, therefore being tied to a mortgage, with penalties and credit score penalties becomes a “drag,” as older adults relate. The cycle of home-ownership seems to be altered as the economy has dictated change for all.
Government regulations aided by tax loopholes for banks, real estate developers and apartment developers have helped focus the housing market to build and sponsor better rental units that will appeal to this generation. It’s a reality, just like FaceBook, Twitter and the government give-aways to special interests, so saddle up and get ready for the ride if you are young, mobile, but still unable to really get ahead. The “Pie-in-the-sky” will still be there tomorrow…