Housing is no longer a goal for the next generation

[Macro Exchange]

Housing prices keep rising, but wages haven’t kept up. For many young people, owning a home is no longer a realistic goal -  it’s becoming a luxury.

What used to be a natural part of adult life has turned into a debt trap or simply a fantasy. More and more young people are realizing that buying property under current conditions makes little financial sense.

We're witnessing a shift: instead of saving for a home, people are turning to alternative assets, remote lifestyles, or simply accepting long-term renting.

Is this the beginning of a structural economic change - or just another bubble waiting to pop?

You can't say same applies to all young people all over the world. Different countries with their different backgrounds and economic status of their young people. In my country, houses are equally expensive but most young people would rather splash money on cars that build a house. Although building a house does not seem like a priority to them, the major reason is not because they cannot afford to get themselves a house. Most young people just prefer to live in locations where they can connect with like minds and business partners.

You absolutely right - priorities vary a lot depending on the country, culture, and personal goals. But in many more developed countries, there's growing awareness among young people that homeownership has become far less attainable than it was for previous generations. While their parents may have been able to buy a house with an average job and reasonable savings, today’s market is often out of reach due to soaring prices, stagnant wages, and high living costs. Of course, this doesn’t apply everywhere, but in many places, it's not just a matter of preference - it’s a reflection of economic reality.

[Chilwell]

I guess the issue of house rent rising isn't only happening in my country, owning a house of your own is quite expensive now that building materials have doubled in price and long term renting isn't a good financial decision either. I'd like to have a house of my own soon and I'm walking towards that direction, in my country the payment for a rented apartment is annually and now that I'm still in a rented apartment I believe in two years I would be able to at least save up something reasonable to start my own building. Building a house is expensive but renting a house in a long term is a bad idea.

Of course not, we are also going through the same thing in my country. I think the biggest materialistic blessing one could ever received is owning your own house. After that, then you can plan ahead for other things that want. I pray that before then (before two years that you said) you will be able to secure your own apartment. Paying for rent is not an easy task. For many people in the 21st century, building a luxury homes and living a luxurious lifestyle is a significant aspiration.

[alastantiger]

You can't say same applies to all young people all over the world. Different countries with their different backgrounds and economic status of their young people. In my country, houses are equally expensive but most young people would rather splash money on cars that build a house. Although building a house does not seem like a priority to them, the major reason is not because they cannot afford to get themselves a house. Most young people just prefer to live in locations where they can connect with like minds and business partners.

Because of the insecurities in some countries that's why people aren't interested in building houses. The moment they get a permanent location which having a house signifies, it can make them become stuck to that location but having the freedom to move from one apartment to another through renting houses can help keep them in developing environment that encourages growth. When your environment isn't motivating you to become a better individual, you need to relocate but having a house can limit that unless you wan to let go of all you have invested into the building to living as a talent again. Don't build a house when you don't need it, house should be among some of our least priority and focus on building wealth.

[Dzwaafu11]

Housing prices keep rising, but wages haven’t kept up. For many young people, owning a home is no longer a realistic goal -  it’s becoming a luxury.

I think you should know yourselfon this matter and not young people. I have not seen any young man who wishes us not to be successful and get their own house, so I’m surprised you said this. Moreover, everyone wants to live a luxury life, so why did you say young people think owning a house has now become something luxurious and they are not planning to own it? I can say that you are wrong; rather, maybe for you, you see, owning a house is a luxury, and you don’t seem like you will be owning one.

What used to be a natural part of adult life has turned into a debt trap or simply a fantasy. More and more young people are realizing that buying property under current conditions makes little financial sense.

We're witnessing a shift: instead of saving for a home, people are turning to alternative assets, remote lifestyles, or simply accepting long-term renting.

Is this the beginning of a structural economic change - or just another bubble waiting to pop?

Even before now, a house was never something free; you must work hard to get it. It’s just that the economy is not like before, and things have changed. Things have cost to some extent in that not everyone is able to afford it, but everyone who wishes to be successful wishes to have a housemate. I’m surprised to see this, because I haven’t heard or seen any young man who thinks this way; everyone is working to be successful.

[l3pox]

And based on this study of precedence: https://www.precedenceresearch.com/real-estate-market
It's going to continue to grow up to 2034 and that means that this inaffordability of houses will continue and many will no longer afford to purchase one for themselves.



The goal of many to have their homes is not going to happen because of the continual increase in the price of housing. And this chart means about growing in size of market cap tells that a lot.

the place where a person chooses to have their home also changes everything
living in big center are way more expensive than living in the countryside, of course
some places are so expensive the cost by itself will keep a lot of people out of it

it's crazy how prices and even rent is going up all around

[AmoreJaz]

I guess the issue of house rent rising isn't only happening in my country, owning a house of your own is quite expensive now that building materials have doubled in price and long term renting isn't a good financial decision either. I'd like to have a house of my own soon and I'm walking towards that direction, in my country the payment for a rented apartment is annually and now that I'm still in a rented apartment I believe in two years I would be able to at least save up something reasonable to start my own building. Building a house is expensive but renting a house in a long term is a bad idea.

Of course not, we are also going through the same thing in my country. I think the biggest materialistic blessing one could ever received is owning your own house. After that, then you can plan ahead for other things that want. I pray that before then (before two years that you said) you will be able to secure your own apartment. Paying for rent is not an easy task. For many people in the 21st century, building a luxury homes and living a luxurious lifestyle is a significant aspiration.

For now, don't aim for a luxury home but just go with the basics. As long as you have decent home where you can live your family decently, that's more than enough. At least you are not paying rent and the amount that you will allocate for home improvement is worth it because you own it. Just aim for more when you have more in the future. But do remember, you don't need a luxurious lifestyle in this life.
Because later on in your life, you will appreciate more about what factors really are important in this life. And a luxury life won't give you peace and contentment but you will see mostly, on how you live with the basics. Like living in a countryside which is more peaceful. Less material things, less stress and many more.

[TopT3ns]

I guess the issue of house rent rising isn't only happening in my country, owning a house of your own is quite expensive now that building materials have doubled in price and long term renting isn't a good financial decision either. I'd like to have a house of my own soon and I'm walking towards that direction, in my country the payment for a rented apartment is annually and now that I'm still in a rented apartment I believe in two years I would be able to at least save up something reasonable to start my own building. Building a house is expensive but renting a house in a long term is a bad idea.

Of course not, we are also going through the same thing in my country. I think the biggest materialistic blessing one could ever received is owning your own house. After that, then you can plan ahead for other things that want. I pray that before then (before two years that you said) you will be able to secure your own apartment. Paying for rent is not an easy task. For many people in the 21st century, building a luxury homes and living a luxurious lifestyle is a significant aspiration.

For now, don't aim for a luxury home but just go with the basics. As long as you have decent home where you can live your family decently, that's more than enough. At least you are not paying rent and the amount that you will allocate for home improvement is worth it because you own it. Just aim for more when you have more in the future. But do remember, you don't need a luxurious lifestyle in this life.

We should realize that it does not matter as to how large or luxurious a home is but is a place that is safe and comfortable to grow together. It is understandable that you do not want to end up blowing money on a house that is too costly. We are very caught in the superficial form that a house needs to be big in order to be called a successful one when we as people have far simpler needs than that. What is much needed needed now is to make sure we can afford a home which will be a safe haven in the future to base our family life on which will not cause us a lot of damages to our bank balance.

Renovation of homes is normal since it is one way of taking care of what we already have. It does not mean we have failed in case we should not be able to afford a larger home at the moment. Actually, we are also educating ourselves to be realistic. We are not after prestige but something or somebody that will be stable and comfortable without being harmful to our future. Let us go on living with our heads high, and calculating sensible measures, and carrying them with step, but step.

[danherbias07]

I am just glad I bought my house with a mortgage of the same price as the rent I am paying, that is why I accepted it. Instead of renting forever, I want my own home, even if it will take me 30 years to pay for it.

But you are right about your point, it has become a luxury now. I have a neighbor who got his house in a bidding and his monthly mortgage is double the price of my house, even though it has the same size of land and house. I was actually shocked that it only took 5 years to double the price, and the speed at which houses are getting more expensive is getting faster as the city is growing too.

[reagansimms]

The situation, conditions and mindset of the next generation (young people) in the place you are talking about may be different from other places or countries. How is it possible that a house is no longer a realistic goal when it is a very basic need, most of the young generation around where I live want to live independently after getting married, they start building houses even though they are not too big instead of paying rent which can increase expenses. The mindset of people where I live is that they want to live comfortably without having to burden others or themselves, for example by staying at their parents' house or paying regular rent every month/year, so they will continue to try to build their own house even though it takes years due to financial limitations.

[tottong]

What used to be a natural part of adult life has turned into a debt trap or simply a fantasy. More and more young people are realizing that buying property under current conditions makes little financial sense.

We're witnessing a shift: instead of saving for a home, people are turning to alternative assets, remote lifestyles, or simply accepting long-term renting.

If basically using debt, I might agree that it is an unreasonable choice, but if it can be utilized the existing options, the property is no longer a trend in the current conditions.
What makes someone think to turn to an investment model that is much easier to run and how to return the results you get?
The answer is quite diverse and people see the potential for the investment in live must be at the level of financial freedom you want.
For example, if we place money in a certain amount of bitcoin and if the investment is done correctly, the investment will develop by itself.
This is the pattern of financial freedom expected by most people because we can sit casually in generating maximum profits if carried out properly.

[Oshio-man]

I am just glad I bought my house with a mortgage of the same price as the rent I am paying, that is why I accepted it. Instead of renting forever, I want my own home, even if it will take me 30 years to pay for it.

That is a good decision that will make your generation to celebrate you as a good father or mother to secure such property. There are some people who will not have such idea to buy the house than to continue paying rent but you developed the idea to buy the house to become your property that will be generating income for you monthly or yearly, even though it takes you 40 years to balance the payment for the house document to be given to you, you are out from house rent from that country which I will like to encourage others people to take such risk to acquire properties that will make them to celebrate for having such houses properties, I know is not easy to buy houses or build houses in a develop country because it requires huge amount of funds before you will be able to have properties in that country.

[bitzizzix]

Housing will remain a primary consideration for young people before and after marriage, as it's the most comfortable place for us all to rest and relax after work. You can even work comfortably from home to earn extra income.
And most people strive to realize their dream of owning a home, regardless of the price. They know house prices will continue to rise over time, but that's not a deterrent because a home is a vital necessity. And once they own one and want to sell, the price will also rise, making it profitable and allowing them to repurchase a cheaper, more modest home in a less crowded area. As the area develops and becomes more crowded, house prices will rise, and this can be turned into a business until they find the right home.

[STT]

 Problem here is the label for the housing as an asset, young people typically have the energy and good health but not the wealth to take part in a fully mature housing market.
   Quite a few housing locations are biased towards people near to pension age and are far too expensive for people or families starting out.  

The solution to me is fairly obvious young people do need housing and a place to stay like everyone however they must be part of building that next generation of housing.  This is not unheard of and sometimes a cooperative of different trades will build a row of houses together to get the job done.
  This does require people are allowed to buy and develop the land to begin with, often cities have restricted development and repressed their youth in effect for the growth required.

[abhiseshakana]

I am just glad I bought my house with a mortgage of the same price as the rent I am paying, that is why I accepted it. Instead of renting forever, I want my own home, even if it will take me 30 years to pay for it.

But you are right about your point, it has become a luxury now. I have a neighbor who got his house in a bidding and his monthly mortgage is double the price of my house, even though it has the same size of land and house. I was actually shocked that it only took 5 years to double the price, and the speed at which houses are getting more expensive is getting faster as the city is growing too.

I assume you are lucky and right in making decisions. Some people prioritize idealism and forget about reality. For example, many young people and new workers choose to live in the city center, close to their workplace, with high mortgage payments, without considering the idea that "we can only guess what the future holds". Some choose to live in the suburbs, waking up and leaving for work earlier, and paying lower mortgage payments. A home or shelter is a primary human need, serving not only as a shelter but also as a place to rest and carry out daily activities, especially for families with children.

The importance of housing is crucial because as humans proliferate, the infrastructure and facilities necessary for life also increase. Therefore, a nomadic lifestyle can be exhausting and expensive when moving around.
If the target is only to have a house, a house in the countryside can be bought at a very cheap price, but what young people want to have now is a home.

[YOSHIE]

Is this the beginning of a structural economic change - or just another bubble waiting to pop?

That was caused by some changes in policy from the local government, especially in the economic field, free assistance houses, cash assistance to become the community to be lazy To think long -term to think of homes added to the economy today is bad for global life.

My country this year issued 3000 free livable houses, this is one of the structural economic changes, you can use money for investment purposes, The opportunity for opportunities to get is very possible, for that many today in my area of new young people who are married do not need to think of home, Enough to be a volunteer candidate for your governor will get a house or become a supporter alone, that's how the change is currently ongoing.

[dunfida]

I guess the issue of house rent rising isn't only happening in my country, owning a house of your own is quite expensive now that building materials have doubled in price and long term renting isn't a good financial decision either. I'd like to have a house of my own soon and I'm walking towards that direction, in my country the payment for a rented apartment is annually and now that I'm still in a rented apartment I believe in two years I would be able to at least save up something reasonable to start my own building. Building a house is expensive but renting a house in a long term is a bad idea.

Of course not, we are also going through the same thing in my country. I think the biggest materialistic blessing one could ever received is owning your own house. After that, then you can plan ahead for other things that want. I pray that before then (before two years that you said) you will be able to secure your own apartment. Paying for rent is not an easy task. For many people in the 21st century, building a luxury homes and living a luxurious lifestyle is a significant aspiration.

For now, don't aim for a luxury home but just go with the basics. As long as you have decent home where you can live your family decently, that's more than enough. At least you are not paying rent and the amount that you will allocate for home improvement is worth it because you own it. Just aim for more when you have more in the future. But do remember, you don't need a luxurious lifestyle in this life.

We should realize that it does not matter as to how large or luxurious a home is but is a place that is safe and comfortable to grow together. It is understandable that you do not want to end up blowing money on a house that is too costly. We are very caught in the superficial form that a house needs to be big in order to be called a successful one when we as people have far simpler needs than that. What is much needed needed now is to make sure we can afford a home which will be a safe haven in the future to base our family life on which will not cause us a lot of damages to our bank balance.

Renovation of homes is normal since it is one way of taking care of what we already have. It does not mean we have failed in case we should not be able to afford a larger home at the moment. Actually, we are also educating ourselves to be realistic. We are not after prestige but something or somebody that will be stable and comfortable without being harmful to our future. Let us go on living with our heads high, and calculating sensible measures, and carrying them with step, but step.

Everything will be that ending up on someones preference on which it would be that better that we should be that following on what we do have in mind and heart and wont be that always listening or going the same on what other people would be that wanting. Each person does have that different ways on how to earn money or simply their financial capacity. We do know that there are those people who are financially capable but still ending up on wanting or preferring on renting rather than on buying up their own house. There are those people that despite of being that living on average does really want to have their own house because t hey do feel out secure and being that comfortable on owning their own home and doesnt need to pay up some rent. Goals and intents will be that definitely be that different to each person which we know that each one of us does have that different level of capacity and plans in life.

It would be better that you should be sticking into your ideals and preference so that you wont be ending up on having those kind of regrets at the end just because you do try to oppose on what you do have ind mind but of course everything would be still that depending because there are those choices on which are worth to do so because you have seen that opportunity or some beneficial aspects.

[coyhasmon]

Is this the beginning of a structural economic change - or just another bubble waiting to pop?

That was caused by some changes in policy from the local government, especially in the economic field, free assistance houses, cash assistance to become the community to be lazy To think long -term to think of homes added to the economy today is bad for global life.

My country this year issued 3000 free livable houses, this is one of the structural economic changes, you can use money for investment purposes, The opportunity for opportunities to get is very possible, for that many today in my area of new young people who are married do not need to think of home, Enough to be a volunteer candidate for your governor will get a house or become a supporter alone, that's how the change is currently ongoing.

Importing massive quantities of migrants most of who are useless and parasites is not helping either. The result of house pricing explosion is solely the result of bad policy. Those with interest in cheap labor and good even if useless statistics fund economic think thanks that produce fearmongering on population decline. As if a stable population would mean that a nation is going to implode very soon after. Even short periods of population decline would not be bad at all, but interests that control the narrative do not want this.

Were it not for such things, the prices of houses would be much more reasonable. To add on all of that is the ability of massive corporation to hold endless portofolios of houses. This leads to the increase in rent costs and house costs which further makes this situation worse.

[JiiBs]

People that I know still wish to become successful in life and build home. At least if it is not a big one, but they do not want to continue paying for rent, and which is very good.

Owning a house is one thing and owning a home is another. A house could be just any building, either a living space or where some business of some sort is being done but a home, it’s the deal living place with a good sense of comfort for habitation.
You’re not wrong to say owning a home is a dream as not so many own homes and it’s not easy to own a home for real, with a lot of people still looking to get by in a hard economy, it’s not easy but still achievable.

[kryptqnick]

The kind of generalizations the op makes could benefit from citing sources to see whether it's truly a trend and, if so, in which countries. In my country, older generations just got their flats from the state but didn't exactly own them (Soviet Union, Marxist stuff about private property). Then, as the Union dissolved, there were opportunities to privatize flats. Still, buying property was never affordable to most people.
Right now, only those earning well above average rate can save up for a flat or benefit from mortgage.
Speaking of mortgages, the rates are some of the worst in the world, so they aren't popular. Also, renting isn't that expensive here, whereas a strong possibility of having your flat damaged or destroyed in Russian air strikes discourages saving up and buying a flat.

[Mate2237]

People that I know still wish to become successful in life and build home. At least if it is not a big one, but they do not want to continue paying for rent, and which is very good.

House is still a goal but maybe where you are living is different from where I am living. People still want home of themselves in my country. Even people that are not rich still find all means to build their own house if possible they can do it.

I think that the environment where the OP is writing from matters because in European and American societies building of houses is not popular because they have moved beyond building of houses people buy house as they grow and become successful but is different from other countries this is due to the fact that the government of such countries have done significant investments when it comes to housing in making sure that the citizens gets affordable housing.



I think that the world is moving fast I I believe that in the nearest future housing will not be a problem to anyone because the right infrastructure will be put in place to make sure that the coming generations doesn't lack good accommodations because accommodations is one of the basic necessities of man