Echo Boomers Want the Freedom of Renting

 
Tim Smith of the blog Echo Boomers says that the federal government could offer various incentives to spur homeownership and mortgage rates could drop to 1 percent, but such moves would not stop a shift in the housing market among the Millennial generation, or Echo Boomers. He points out that the assets of 90 percent of Echo Boomers are less than $1,500, which is not enough for a down payment. He adds that the U.S. Federal Reserve, politicians, and banks fail to understand that the Millennial generation does not prepare, does not save, and places a higher value on fun.

Smith’s research on Echo Boomers has revealed that fewer than 33 percent want to own a house in the future, as most value freedom over homeownership. He says that after spending years paying off student loans to obtain graduate degrees, most are not keen on taking on a mortgage. Moreover, they would rather live in social areas than incur the costs of commuting from the suburbs.

Smith adds that Echo Boomers are skeptical about homeownership and notes that homeownership was not the American Dream for many of the older adults with whom he has spoken. Furthermore, Smith says that homeownership often never pays for itself, as owners never recoup the money spent on insurance and maintenance, among other costs.
From “Attitudes of Young Americans Bode Ill for Housing Recovery” http://onforb.es/u6UL4C
Forbes (12/17/11) Smith, Tim