Home affordability crisis taking a toll on America's young adults
foxbusiness.comCushman & Wakefield Chairman of Global Brokerage Bruce Mosler discusses President Donald Trumps impact on commercial real estate and how Americans are handling 7 percent mortgage rates.
The ability to buy a home has become increasingly difficult in the U.S. in recent years, and some experts are concerned about the long-term impact on young adults, who currently have a higher hill to climb to achieve the American dream than previous generations.
«Rising interest rates, inflated home prices, and stagnant wages are forcing many into a cycle of lifelong renting, where building equity feels increasingly out of reach,» said real estate investor Lori Greymont. «Without strategic shifts, we’re watching an entire generation get priced out of the American dream.»
It's a lot more difficult to buy a home in the U.S. than is used to be. That has some experts concerned about America's young adults. (Tammy Ljungblad/The Kansas City Star/Tribune News Service via Getty Images / Getty Images)
Dr. David Phelps, a financial expert and founder of the real estate investing community Freedom Founders, told FOX Business that while some people have claimed Gen Z is lazy and entitled when they complain about the cost of housing today, he does not believe that is accurate.
«Gen Z is correct—housing absolutely has become unaffordable for a significant portion of our population, especially that generation,» Phelps said. «Wages haven’t kept up with inflation or the rapidly rising home costs, and that’s before you even factor in rising interest rates and tightening underwriting guidelines.»
EXISTING HOME SALES FALL TO LOWEST LEVEL IN NEARLY 30 YEARS
Phelps said that based on the average salary in the U.S., a home buyer can afford a home that costs
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