Home Ownership Among Young People Plummets

The Boston Globe reports that home ownership rates in Massachusetts among 25 to 34 year olds fell by 20 percent between 2005 and 2010.  High unemployment and high debt are the reason that young people can't make the transition from renting to ownership and in many cases, from moving out of their parent's' home.  The Globe writes:

The number of 25-to-34-year-olds owning homes in Massachusetts plunged 20 percent between 2005 and 2010, even as the overall number of homeowners in the state increased slightly, according to the US census. The rate of homeownership, which measures the percentage of housing units occupied by owners, fell more for 25-to-34-year-olds than any other age group, declining to 34 percent from 40 percent in 2005.

And as for the factors:

High unemployment, crushing student debt, and tight credit conditions are keeping many young adults and families from becoming homeowners, analysts and real estate professionals said. At the same time, the turmoil that has followed since prices peaked in 2005 and the housing market collapsed is changing this younger generation’s view of housing, long thought of as a safe, sure investment and prerequisite to the American dream.

Government created the housing bubble.  Many of these young people who saw their older friends and siblings buy homes only to find their residence deeply underwater.  It's no wonder that young people today are hesitant to make such an investment.