Many Millennials Give Up, No Longer Dreaming of Owning a Home
According to a recent survey, millennials are the generation most likely to have given up on the dream of buying a home over the last five years. The survey also reveals that millennials and younger generations feel deeply despondent due to the ongoing housing crisis.
The report, titled the Home Affordability Survey 2025 conducted by Bankrate, found that one in six (16%) prospective homebuyers in the US could not find a property they could afford between 2020 and 2025. This situation has led them to surrender their ambitions of homeownership.
“Housing affordability in the US is at its worst level in decades,” said Stephen Kates, a financial analyst at Banklar, in the report. “The bad combination of high house prices, low supply, and high mortgage interest rates has caused one in six homebuyers over the last five years to give up entirely.”
The proportion of the generation feeling hopeless about homeownership has risen to 22% among millennials, followed by Generation X (17%), Generation Z (12%), and baby boomers (12%).
What is the situation in Indonesia?
Although there is no similar survey in Indonesia, house prices in the country are among the most unaffordable in the world. This occurs because the gap between the average income of Indonesian citizens and available house prices is too large. The greater the ratio of house prices to average income, the more unaffordable housing becomes in that country.
A recent report from The Economist reveals that the countries with the most unaffordable housing are predominantly located in Asia.
The primary issue is not merely high prices, but the fact that house prices are rising far more rapidly than incomes. Additionally, the housing supply is insufficient to meet demand.
According to The Economist’s report, the following are the countries with the least affordable housing in the world:
Philippines
Sri Lanka
Thailand
India
South Korea
Indonesia
China
United States
United Kingdom