In the early years of the fifties, it was much easier for young adults to purchase a home. Now, young adults aren’t able to jump on the bandwagon that soon because the price of homes has gone up fourteen times since then. Wages haven’t increased at the same pace at all. A new home is at least eight times more than the current wages can afford people. The average age for purchasing a home used to be in the early twenties, but now people are nearing their mid thirties before purchasing a home.
- There is a far greater gap between income and prices for millennial’s compared to the gap that baby boomers lived in.
- A new tool called the MortgageScore tool has been developed and it lets buyers know how likely they are to get a mortgage.
- Property prices have risen twice as fast as wages in the UK over the past 40 years and home prices are 14 times higher now than they were in the late 1970s.
“The growing disparity helps explain why home ownership rates have been on a downward trend over the past decade, despite a recent uptick.”