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Millennials Aren't Buying Homes. Good for Them.

Linked by Paul Ciano on August 27, 2016

The Washington Post:

Relative to earlier generations, today’s cohort of young people is making less money, given their levels of education; more indebted with student loans; more likely to be underemployed; struggling harder to sock away savings; and facing shallower income-growth trajectories.

In short: Millennials want to buy houses, but they simply can’t afford to.

For workers who are just figuring out their careers — and who, given the unlucky timing of their graduations, are more likely to have started out in low-paying positions — this seems especially wrongheaded. We want young workers to be mobile and to have as few frictions for job-hopping as possible. Changing jobs is, after all, the main way young people get raises and derail themselves from a poorly paying job track.

In other realms — such as health insurance — policymakers have been actively trying to reduce this so-called job lock. Millennials’ relative rootlessness, even if involuntary, may have the same effect, by making it easier for young workers to seize better job opportunities if and when they finally do arise.

Paul Ciano

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