As the prospect of homeownership slips away from young Americans, many are exhibiting financial behaviors that could have economic consequences down the line, according to new research.
Those who are resigned to being forever renters are more inclined to spend, slack off at work and take on risky investments, as posited by Seung Hyeong Lee of Northwestern University and Younggeun Yoo of the University of Chicago (1).
“When housing becomes unattainable, people do not simply stay renters — they often change how they live, work, and plan for the future,” the pair wrote in an early-stage research paper posted online in November. “These changes compound over time and can reshape the economy.”
The two researchers developed a life-cycle model that projected those born in the 1990s will enter retirement with a homeownership rate 9.6 percentage points lower…
