http://fortune.com/2014/09/22/housing-young-americans-parents/
Fortune covers recent demographic census data about Millennials and home ownership. As is often the case with many of these articles about Generating Y, the authors miss the point.
First a little background:
Born in 1987, I'm an older member of Gen. Y or a very young member of Gen. X, depending on your definition. For the sake of argument, I define myself as a Millennial since I entered my adult years between 2000 and 2010.
First, I do not speak for every Millennial, but I can give my reasons for not owning a home and perpetually renting.
Let's start with a little biographic information:
I grew up in small-town farming community Midwestern USA to two WASP,working-poor parents. My community was mostly white with some Hispanic families. So we were not very diverse, but what we lacked in diversity, we made up with a friendly demeanor and general goodwill. During the early1990 boom in interest in the hinterlands, our economic prospects looked good.
Then came the late 1990s. As with previous economic downturns, the farmlands were the first to experience the downturn. Factories started leaving and with that jobs became scarce. Then entire industries departed. A few holdouts remained, but with fewer job prospects, many began selling homes and moving to other locales.
Personal Impact:
I remember the worry on my parents' faces as factory after factory left, leaving vacant lots and rotting buildings. My mother lost her job through structural changes in the printing industry, but she was able to find work at a local school as teacher support for an at-risk school for challenged students. However, many of her coworkers were not as fortunate.
Then the bottom fell out in 2007 as banking ponzi schemes in the housing market derailed any chances for recovery in our small towns. For almost 10 years, I saw how quickly economic change could have left my family homeless.
If only I could get out of town and move to a place with jobs, I thought. A college degree was no longer optional for me, it was my ticket to freedom. Working at the factory was a dead-end that only led to more poverty.
So like many of my generation I went off to college in 2005. The Great Recession only proved how necessary the investment in education had become if I ever hoped to gain a sliver of the American Dream, but once my graduation date neared, I realized how useless and future my slip of paper would be. I left with good grades and experience, but I was completely disillusioned with my experiences.
The loss of jobs:
Fewer job options, shrinking markets, and overpriced homes made the dream of home ownership turn into a lifelong nightmare, which shackled my future job prospects to a location's economy. From my past experience, owning a home was no longer a good investment, and the cities looked better than ever to the transient workforce of Millennials. If the economy collapsed in one market while I rented, I could ditch that city for another.
The inability to dodge, deflect, or otherwise mitigate my college loans meant that having a job, any job, was better than the lack of pay, but the market had shifted and with it, I realigned my priorities.
Volatile markets and economic shifts could occur at any moment and anywhere. Making sure that my future prospects were secure meant being mobile and versatile. Owning a home guaranteed that I could be neither.
Cultural shifts (going back home):
My experience in the big city with its diversity and multiculturalism changed my small-town worldview and beliefs. In college I challenged these views, and I ultimately decided that they simply no longer matched my observations.
I consider those years in college as my decompression years. It was through these new experiences that I gave up long-standing religious and political beliefs in favor of a more tolerant worldview that no longer included religion or conservative politics.
Going home to my hometown was no longer a joy; it was painful. My parents and their neighbors never had any reason to change their minds or beliefs, and that change was out of the question. Smalltown USA had been a great place to grow up, but it became a place where who I had become could no longer call home.
The conclusion:
I am still burdened by college debt, as are many of my friends and age group, but to say that college debt is the only reason that I do not own a home would be only seeing a sliver of the picture. In fact, I have the ability to own, but I no longer see home ownership as a part of my personal narrative or future goals.
So, no. It's not just just an inability to own, it's a complete rejection of home ownership, and I believe that many of my demographic feel the same.