Young people can afford homes, they just don’t want to be homeowners

Fortune

Eight years following the bursting of the housing bubble, Americans are not quite at ease with the real estate market.

Homeownership rates recently hit 48-year lows, with most commentators arguing that such a trend doesn’t bode well for the American economy. “In general, I think rising homeownership is a plus for the economy and it signals a strong economy. The fact that it is falling is generally not a good thing,” Mark Zandi, chief economist at Moody’s Analytics Inc, told the Wall Street Journal.

Adding fuel to this worrying fire is a report released Monday from Zillow, which showed that first-time home buyers are waiting longer than ever—six years—to make the move from renting to owning. Zillow Chief Economist Svenja Gudell attributed this problem to the fact that young people are struggling to “save for a down payment and qualify for a mortgage, especially while the rental market is…

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