![[내 집은 어디에②] The United States is also suffering from high housing prices… Young people say it’s difficult to buy a house](https://i0.wp.com/t1.daumcdn.net/news/202411/25/THEFACT/20241125000101305ione.jpg?fit=%2C&ssl=1 "[내 집은 어디에②] The United States is also suffering from high housing prices… Young people say it’s difficult to buy a house")
After COVID-19, U.S. home prices soar by nearly 50%
From August last year to July this year, the average age of home buyers was 56 years old.
It was found that U.S. home prices have soared by nearly 50% since COVID-19. Accordingly, the MZ generation in the U.S. is also having difficulty purchasing their own home. /Newsis
[더팩트｜이중삼 기자] The thirst for ‘owning a home’ is not just a problem in Korea. It’s been a long time since it became a common ‘wish’ around the world. Just looking at the situation in the United States, a superpower, the age of purchasing a home for the first time is increasing, and even the American MZ generation (Millennials+Z) is becoming increasingly aware that it will be difficult to buy my own home in this life. The difficulty of owning a home due to high housing prices is the same whether in Korea or the United States.
House prices in the United States have risen significantly since COVID-19. According to Redfin, an American online real estate brokerage, the average home price in the United States has surged 47.1% since 2020. The median selling price is $394,000 (as of the 22nd, KRW 551.6 million). People looking to buy a house in the U.S. typically look for one priced at $200,000 (280 million won). However, with soaring housing prices, it has become much more difficult to purchase a home.
Last July, Fox Business Broadcasting reported, “Housing prices have become more expensive than ever,” and “People who want to buy homes in markets across the United States are being priced out.” In fact, according to real estate brokerage platform Realtor.com, the proportion of homes sold for less than $200,000 over the past few years amounted to about half of all sales, but last year it plummeted to about a quarter. There are even statistics showing that 44.7 million households in the United States are currently living in housing that does not meet basic conditions. They can’t even live in a home that feels like home.
As house prices rise, the average age of homebuyers also rises. According to a recent report by CNBC citing the annual report of the National Association of Realtors (NAR), the average age of homebuyers in the United States for the year from August last year to July this year was 56 years old. This figure is 7 years more than the previous year (49 years) and is the highest level ever. The average age of first-time homebuyers was also 38, slightly delayed compared to the previous year (35).
It is analyzed that it will take some time for U.S. housing prices to stabilize. This is because the current U.S. housing market is not bright. The housing market index, which shows the health of the housing market, has been below 50 for six months since last May. In April alone, it recorded 51, but in May (45) → June (43) → July (42) → August (39) → September (41) → October (43) → November (46), etc. It is not exceeding the baseline. Although the numbers have been gradually improving since September, it is expected that recovery will be slow as the global economic downturn is prolonged.
![[내 집은 어디에②] The United States is also suffering from high housing prices… Young people say it’s difficult to buy a house](https://img4.daumcdn.net/thumb/R658x0.q70/?fname=https://t1.daumcdn.net/news/202411/25/THEFACT/20241125000101305ione.jpg "[내 집은 어디에②] The United States is also suffering from high housing prices… Young people say it’s difficult to buy a house")
The American MZ generation had a great desire to buy a house, but found it realistically difficult. /Newsis
◆ America’s MZ generation, only 10% responded ‘It is easy to buy a house’
As a result, it appears that the MZ generation in the U.S. is giving up on buying their own home. I had a strong desire to buy a house in my name, but I ran into a wall of reality. According to Bankrate.com, 82% of the MZ generation who are currently homeless said they would make any sacrifices to buy their own home. It was 18% higher than the baby boomer generation (64%). Also, according to Bankrate, 63% of Generation Z answered that owning a home is their dream.
However, they believe that buying a house is not easy. In a survey conducted last July by the Wall Street Journal (WSJ) and the Public Opinion Research Center at the University of Chicago among 1,502 American adults, 89% responded that “owning a home is essential or important,” but “owning a home is important.” Only 10% of people responded that it is easy to prepare.
The reason why it is difficult for them to buy a house is believed to be the burden of raising a down payment. In fact, the average annual salary in the United States as of this year is $53,490 (75,014,376 million won). On the other hand, the average down payment in the United States amounts to $78,300 (KRW 109,776,600), or 18% of the home price. As it becomes difficult to find a house based on salary alone, an increasing number of households are eventually turning to their parents’ generation. According to real estate platform Zillow, the percentage of people receiving financial support from parents was close to 40%.
Nella Richardson, chief economist at ADP (An Economic Research Institute), said, “Buying one’s own home has been perceived as a means of creating a middle class,” and added, “If housing purchasing conditions do not improve, the path to the middle class will be blocked.”
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* In what ways could shifting societal priorities and values, beyond just economic factors, influence the future of homeownership and the pursuit of the “American Dream”?
## Open-Ended Discussion Questions: The American Dream of Homeownership
This article explores the difficulties facing the MZ generation in the US when trying to buy a house. Here are some open-ended questions to provoke discussion and explore different viewpoints:
**Section 1: The Rising Cost of Homeownership**
* How does the dramatic increase in US house prices since COVID-19 impact not only the MZ generation but also other demographics?
* What are the contributing factors leading to these sky-high housing prices? Is it purely supply and demand, or are there other forces at play?
* The article mentions the housing market index indicating a prolonged downturn. What are the potential long-term consequences of this downturn for individuals and the overall economy?
**Section 2: The MZ Generation’s Dream and Reality:**
* Why is owning a home so important to the MZ generation, despite the financial challenges? How does this importance compare to previous generations?
* What do you think are the most significant sacrifices the MZ generation is making in their attempt to purchase a home?
* Is relying on parental support a sustainable solution to the housing affordability crisis for the MZ generation?
**Section 3: The American Dream in Crisis?**
* The article quotes an economist stating that “If housing purchasing conditions do not improve, the path to the middle class will be blocked.” Do you agree with this statement?
* What potential solutions could be implemented by policymakers to address the housing affordability crisis and make homeownership more attainable for the MZ generation?
* How might the current housing market challenges reshape the definition of the ”American Dream” for future generations?
By exploring these questions, the discussion can delve into the complex economic and social issues surrounding homeownership in the US, highlighting the challenges faced by the MZ generation and prompting potential solutions for a more equitable future.
