There likely aren’t many facets of today’s housing market that can be compared to that of the Gold Rush era, but according to a recent article in The Seattle Times, young homeowners’ share of the market has regressed to early 20th Century rates. Among Millenials (25-34 year olds) in King County today, only a quarter own their own homes, on par with statistics for that age group in 1900. The percentage has dropped by 13 percent since the housing market peak in 2007, and it has fallen twice as fast as the national average, according to the Times.
By comparison, about 50 percent of homeowners in 1980 were from the 25-34-year-old age bracket, and 80 percent of young married couples making the median income or higher owned their own home. An increasing number of young people have been delaying marriage, and without the financial security of a two-income household, home ownership is out of reach for many young single people. Even in Seattle’s strong job market, singles and couples earning good incomes are increasingly held back by the area’s skyrocketing home prices, as well as student debt that is five times higher than it was 10 years ago.
But the article suggests that another factor could be simply that home ownership isn’t as attractive as it used to be, and young people just don’t want to buy. Many millenials had just graduated from college just as the economic crisis hit, shaking their confidence in real estate as a good investment. Even with the median rent for a one-bedroom apartment in Seattle hovering around $1,800 per month, it appears that a large portion the city’s population of young workers is choosing the low-maintenance flexibility of renting over the responsibilities of ownership. Apartment living as changed dramatically in recent years, and with the breadth of amenities ranging from community gardens to deluxe bicycle maintenance areas, yoga rooms, and rooftop fire pits, renting offers perks that owning a home can’t, with the added bonus of not being tied to a mortgage.
If you would like more information about renting or buying in the Seattle area, contact your local real estate agent today!