Here’s a good artice looking at why so many aren’t buying homes when prices and mortgage rates are so low. There are sound economic and market explanations. But there’s also the issue of attitudes:
Consumer confidence in housing is still in the basement, especially for younger Americans, who make up 46 percent of the rental market, according to Fannie Mae. Younger Americans not only have the highest unemployment rate, but they also don’t have the cash for today’s higher down payments, and in many cases they’ve seen their parents lose massive amounts of home equity. Fannie Mae’s survey found that attitudes played a much bigger role in the decision to buy for some, while demographics played higher for others, and home values, believe it or not, played a very small role
They say it could take a long time for the average American investor to forgive and forget the Wall Street shenanigans that led to the financial crisis — and that led to a fall off in people investing in stocks. Let’s hope the same attitude isn’t extended to home ownership. But who can blame young people after what they’ve seen?