NEW YORK TIMES: …Since 2008, the year Lehman Brothers collapsed and home prices dropped precipitously, there has been a steady increase in the number of people ages 18 to 34 renting instead of buying homes. About 875,000 more households are now made up of young adult renters than would have existed if the 2008-era trend had held steady, according to an analysis of census data by Jed Kolko, chief economist at Trulia, a real estate marketing website.
Moreover, as the economy slowly improves and job growth picks up steam, the millions of 20- and 30-somethings who shared living quarters with friends or nestled in their parents’ basements to ride out the economic shock waves from the Great Recession are beginning to branch out on their own. But they are still largely shut out of the mortgage market.
“They’re not going to go from living with their parents to buying a home,” said Mark Zandi, chief economist at Moody’s Analytics, speaking at a housing conference in Washington. “They’re going to rent an apartment.”… (more)
