One in three UK millennials will never own a home and half of them will still be renting in their 40s. In the US, home ownership under 35 is still at a low compared to the last 20 years. Other European nations seem to be showing similar trends, millennials are not buying houses at the same rates as the previous generations. While this trend seems to be known by nearly everyone, it does not appear high on the political agenda of any party and nearly no government is taking serious action. This is a big mistake.
Security For You and Your Family
The buying of a house brings several benefits to the buyer. Instead of constantly paying rent which disappears into the pockets of the landlord, you can pay off your mortgage. Your house is an investment. Buying a house is central to building up wealth as a middle or lower class person. Usually the owning of a house through a mortgage comes with several tax breaks from the government which gives additional benefits to owning a house versus renting (at least in most European countries). When you have the right mortgage in place, you will not be a victim of slumlords raising your rent outrageously and you are yet again relatively better off in comparison to renting. When we look at the financial position of older people, it seems that homeowners are nearly always better off than people who have rented their entire life. Home ownership is key to laying a sustainable financial future for yourself and your family.
Why Buying a House is Becoming Harder for Millennials
Being blessed by life in a liberal capitalist world, millennials get the short end of the stick when it comes to home ownership. Several factors contribute to a decline in home ownership under this generation. As a generation loaded with students debts, many millennials are way too much in debt to gain any additional debt through a mortgage. Combine this with high youth unemployment and the ‘ gig-economy’ where we can work as independent consultants who have no job security or serious growth opportunities. This sets a large part of the generation up for financial ruin. While some may thrive in this so called entrepreneurial start up climate, the vast majority of our generation will clearly not.
Most millennials tend to live in urban areas where house prices are usually rising quicker than anywhere else, millennial wages do not seem rise accordingly. This yet again negatively impacts millennial home ownership. Due to urbanization and population growth, availability of affordable housing usually lags behind in these areas. The scarcity with the combination of not being able to afford a mortgage makes it even harder for millennials to buy.
Marriage, Home, Children?
Getting married or having children were usually the main reasons couples bought a home. With the average dates of both these life events increasing across the west, millennial wealth accumulation/saving through home ownership will be tempered. This trend is not just impacting home ownership, it might have a reverse effect as well. While millennials have decreased opportunities to buy houses, they could choose to postpone the choice of having a kid or getting married. We do know that when asked, roughly 72% of millennials gave priority to buying a home before starting a family. The smart thing would be to set up yourself in a stable environment as well as having a sustainable financial plan before having children and getting married.
Why Nobody Will Help Millennials
From the individual and from the nationalist perspective, owning a home is a great way to create a secure future for your family and nation. There are however people who have a different view on this topic. People with vast financial resources do not care about what is good for your family or nation, they care about money. In the real-estate market we see a certain trend especially in the cities, investors start buying up houses to start renting them out. Millennials with a starter budget are no match for these people. These investors take the most solid home investments out of the market and leave the rest for us to fight over. This additional market induced scarcity exaggerates the already existing affordable housing shortages in the name of profit.
Our globalist governments are in love with the concept of free flowing capital. This means that a rich sheikh in Dubai or Saudi Arabia should be able to spend all his money wherever he pleases. And he pleases places like London, New York or maybe the city where you live. Rich foreigners will buy homes there which they will nearly never visit. Just as a luxury item to have and show off. While initially you might think that those people are not searching in the same price category as you, they will push out other local buyers downgrading them in price category. This will keep happening to other lower price categories until people are pushed into the category you are in. The scarcity just keeps continuing, and no one will do anything because people are getting richer.
What There Is To Be Done
While a significant portion of our millennials are loaded with debt, have no decent job and are forced to compete with any rich foreigner or investor, our politicians simply choose to do nothing. Radical liberal capitalism has failed our housing market and the millennial generation. It is time to confront the speculators, the slumlords, the rich foreigners and the big landlords. I personally hold property rights to be sacrosanct, but we cannot let their greed triumph over the security and prosperity of our people.