Home ownership amongst the (non-wealthy) young has plummeted in 20 years

“New research from the Institute for Fiscal Studies shows how an explosion in house prices above income growth has increasingly robbed the younger generation of the ability to buy their own home. For 25- to 34-year-olds earning between £22,200 and £30,600 per year, home ownership fell to just 27% in 2016 from 65% two decades ago.

Middle income young adults born in the late 1980s are now no more likely than those lower down the pay scale to own their own home. Those born in the 1970s were almost as likely as their peers on higher wages to have bought their own home during young adulthood.

Andrew Hood, a senior research economist at the IFS, said: “Home ownership among young adults has collapsed over the past 20 years, particularly for those on middle incomes.”

The IFS said young adults from wealthy backgrounds are now significantly more likely than others to own their own home.

Between 2014 and 2017 roughly 30% of 25- to 34-year-olds whose parents were in lower-skilled jobs such as delivery drivers or sales assistants owned their own home, versus 43% for the children of those in higher-skilled jobs such as lawyers and teachers. …”

https://www.theguardian.com/money/2018/feb/16/homeownership-among-young-adults-collapsed-institute-fiscal-studies

One thought on “Home ownership amongst the (non-wealthy) young has plummeted in 20 years

  1. If this continues, within a generation (or two at the most) we will have returned to a feudal society, where most people rent homes from a small minority who own everything. This is the real Conservative Party vision – one which suits Jacob Rees-Mogg’s image perfectly.

    Young people will never earn enough to afford a home on their own, and grandparents and parents are using their savings on social care and not able to leave to kids or grand-kids to kick-start their home ownership.

    Like

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