Younger consumers not buying homes to avoid further debt

A recent report from national policy center Demos and youth advocacy organization Young Invincibles found consumers in their 20's are the first generation to face downward economic mobility compared with previous generations. This uncertain economic climate has plagued the younger generation with consistently high unemployment, a weak housing market and overall distrust with financial institutions due to the recent mortgage crisis.

Thus, the generation is more hesitant to invest in the stock market or own a home, as they fear acquiring unnecessary debt while struggling to pay off other expenses such as a large amount of student loans. The report found the majority of 20-somethings earn less than previous generations did at the same age while owing more on student loans.

The study found 48 percent of young Americans believe that Millennials may be worse off than their parents, and 68 percent believe it is harder to make ends meet during the Great Recession than compared with their parents' generation. Only 69 percent of young Americans believe the "American Dream" is still achievable for their generation.

Another study from Pew Research found the wealth gap between America's young and old is at its widest point of all time, making it more difficult for 20-somethings to own a home. Further, the Project on Student Debt found college seniors owed an average of $25,250 when they graduated in 2010, and many have accumulated a credit card debt from school as well.

More News