by Bill McBride on 4/08/2016 04:19:00 PM
Friday, April 08, 2016
A decade ago I was arguing one of the tragedies of the housing bubble was that many first time buyers would sour on homeownership for a long time, if not forever. Unfortunately that has happened.
From Chris Kirkham at the WSJ: Housing Bust Lingers for Generation X
The group of Americans known as Generation X has suffered more than any other age cohort from the housing bust, according to an analysis of federal data, suggesting homeownership rates for that group could remain depressed for years to come.
There are now three million more renters in their 30s and 40s today than 10 years ago, even though the number of households in that age bracket declined, according to data from the Harvard Joint Center.
Many people who lost homes to foreclosures or short sales face long waits before lenders will consider them again—up to seven years for foreclosures and up to three years for a short sale. A study last year by the National Association of Realtors estimated that about a third of the 9 million buyers who went through distressed sales or foreclosures between 2006 and 2014 will never return to homeownership.