One reason for the housing slump that has been less discussed is the reluctance of Generation Y (those born between 1980 - 1995) to purchase housing ( http://www.forbes.com/sites/peterjreilly/2011/12/17/attitudes-of-young-americans-bode-ill-for-housing-recovery/) Peter Reilly in Forbes has stated that only 13% of Gen Y'ers own homes and only a third express an interest in ever owning one.
Reilly provides a number of reasons for these feelings:
1) Gen Y'ers are more interested in spending money on experiences like traveling than they are in saving for a home;
2) Gen Y'ers don't want to be tied down to a specific place for very long;
3) Gen Y'ers want the amenities of urban living that they can only afford by renting.
I would add a couple of my own:
1) Gen Y'ers are skeptical of owning real estate because of the recent housing crash;
2) Gen Y'ers are saddled with education debt, which makes it harder for them to get a mortgage.
Whatever the reason for this generational phenomenon it creates great opportunities for landlords. Gen Y'ers are inclined to rent so whoever can figure out what types of apartments they are looking for can profit from this trend.
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