Can the next generation afford to buy? Short answer: not so much.
That's one of the not so surprising conclusions from a recent Fed study. Income has not kept pace with real estate appreciation while the cost of higher education has continued to rise. Meanwhile, the majority of people - including most renters - think buying is a smart idea.
From the WSJ: Why More Renters Aren't Buying (Hint: Weak Incomes, Savings):
Around three in five respondents think that buying a home in their ZIP Code is a good investment, compared with one in eight that think it’s a bad one. “Current renters are as bullish on housing as current owners, or perhaps even slightly more so,” the authors conclude. Renters expect prices to rise at a slightly faster pace than owners over both a one-year and a five-year horizon.
|Renters can't afford to buy, too much debt not enough income.|
|The majority think housing is still a smart investment|
What About Boulder?
Here's something that may surprise you. The majority of Boulder residents do not own their own homes. Renters hold a slight majority over owners in Boulder.
Keep in mind that nearly 44% of Boulder is also under the age of 25. We're a college town. There are currently about 32,000 students who attend CU.
Fun fact: Fewer than 20,000 ballots were cast in the last City Council election (2011). Suzanne Jones received the most ballots in her favor, with 12,933 votes.