Why Can't Millennials & Gen Z Buy Homes? Part III


Part III - How the younger generation's home buying practices work against them.


So far we have discussed how inflation robs the younger generation of their buying power, and then we discussed how the government and corporations inadvertently collude together to keep home prices high in order to maximize revenue for both the builders and the governments.


Yet is that really the only answer to the problem?


Nope, not by a long shot.

Another key issue that we must examine if we are to have any type of true intellectual honesty is the home buying practices of those younger generations.


Part of the reason, yes, it is the smallest part but it is still a part, why starter homes are less and less available is that there is a desire on the part of the younger generations to "save up for what they want" rather than building up their capitol through equity.


What people buy is what the market makes more of. Therefore, the more the younger generations continue to rent apartments as opposed to buying lower cost housing, the more the market is going to trend towards apartment complexes.


It may be a bit of a chicken and egg argument, but it is something that the people of those generations could do in order to kick start a dormant market.


Yet that takes personal responsibility and cooperation instead of victimhood and blame dumping.


Such virtues are not readily accepted in modern society.


Yet this is the kind of action that will be necessary to change the market force.


Perhaps a young person will get an opportunity to guide his company towards building a neighborhood of tiny homes on small lots.


Perhaps a community activist could start a real campaign to get city leaders to relent on their taxes and zone / fund the development of starter neighborhoods like they used to.


The reality is that until this changes, you can expect no real change.


So let me ask you a question, why do you think those responsible keep attempting to pass the buck and to vilify the landlords?


Why do you think that they are all too happy to make someone else into the scapegoat for their greed and never ending spending addiction?


The answer should be fairly obvious, but as we have often seen in the past, an answer that does not leave someone feeling like a victim is not an answer that many are likely to receive.


It's easy to blame the person that you are buying the good or service from, but as is often the case, the price is the way that the price is for a reason. Most landlords I know make $200 or less per rental per month. Sometimes as little as $50 after incidentals. So where does the rest of the cost come from?


It is all part of higher prices to support higher taxes and bigger income for governments.


They have played the Matador, and unfortunately the younger generations have fallen for it.


It is not too late to change it, but at this point it will take a lot of changing.


I just hope the message is not coming too late.

24 views0 comments