Why Aren't Twentysomethings Buying Cars or Houses? (payment, debts, account)

[Grandpa Pipes]

"Why don't young people buy cars and houses like they used to?"

Now the rest of the story and the great comments that are included........

Why Aren't Twentysomethings Buying Cars or Houses? - Derek Thompson - The Atlantic

[Randomstudent]

Probably because most are NINJAs

[LordSquidworth]

We like doing things instead of plowing a lot of money into cars that become utterly worthless and homes that are still over priced.

[skeet09]

Twenty somethings may still be in college (medical school, etc), not yet sure where work will be.
Twenty something may be moving to another city, not having a large down payment for a home yet.
When I was a twenty something (I'm 31 now), I saw home ownership as something I would do with a significant other. Once I got married, we lived in an apartment and bought a house 4 years later. It was easier to start saving for the down payment together and tackle other debts together. We wanted to make sure to have as less debt as possible before buying a home. We bought one that we could do with one income if needed to.

[BIMBAM]

We get married later, go to school longer, and are having a harder time securing stable, well paid, full time jobs, meaning home ownership gets delayed into the thirties since saving for a downpayment and all that other good stuff takes awhile to do. Cars are a pretty regional thing. In some areas, it's the same deal, economic, so people buy used or carpool if they can't afford new cars. In some cities people are going for urban car-free living, but I imagine that's still a small minority as inner cities are small parts of most major metros and many are still dangerous, so that can't account for more then 10% of data. I think the article does a decent job of summarising the issues.

I really like this quote from the comments:

"There's another big reason though that goes beyond logistics and expense. Over the last decade we have seen large institutions falter and "safe" investments implode. Job prospects in other cities may entice neighbors to new cities, or for other reasons we may simply choose a wholly new experience. We witness disruption firsthand, and only see more disruption ahead in how education, health, security, and so many other areas of life operate. This is our "normal." Where change is inevitable, we understand that one of our greatest possible advantages is to remain flexible, resourceful, and open minded. Is it any surprise, then, that we shy away from a 30 year mortgage and choose to take things year by year?"

Mobility is highly prized by many businesses, and trying not to stay too tied down makes it easier to pull up stakes when the ground shifts under you again. Real Estate is no longer looked at as a guaranteed safe and liquid asset. I see condos gaining with this demographic as we try to build equity over the course of our lives.

[yowps3]

The simple answer is NO MONEY

Everyone would buy nice cars and houses if they had enough money!!

[yowps3]

Having said that, most twenty-something live with their parents and use their parents cars, until eventually they buy their own..


There, happy..?

[davecj]

I'm 29. I bought a shiny new car. I've owned four homes. Ive sold one and lease out two. I run my own business (in home sales) and did all of this more or less on my own or with a partner during the recession with money earned working 80+ hours a week for several years.

Since I graduated college in 2005, I've seen the market at its worst (2005-2007) and at its best (2009-2011), just depends on what your perspective is.

[Zenstyle]

Twenty-somethings have no business buying houses. That's the decade when you should be foot-loose and ready to travel.
As for cars, not buying them is a good thing, for crying out loud!

[Themanwithnoname]

I notice that these "no cars people" are all from just a couple areas of the country...

While theres some validity to the housing situation, I'm calling BS on the 'no cars' bit!