The Housing Crisis: Why Young Adults and Retirees Are Stuck Between a Rock and a Pricey Place

Rising Hosing Costs

How not to motivate young adults and retirees to invest in real estate.

Ah, the American Dream—own a home, plant a garden, and live happily ever after. Unfortunately, for today’s young adults and retirees, that dream feels more like a cruel joke. Housing prices are skyrocketing, wages are barely budging, and the idea of finding an affordable place to live is starting to sound like a myth. Let’s dig into why the housing market is out of reach for these two groups—and what can actually be done about it.

Young Adults: Stuck in Rent Limbo

Remember when buying your first home was considered a rite of passage? Well, for millennials and Gen Z, it’s more like an unattainable fantasy. Here’s why:

• Prices Are Out of Control
  Between 2020 and 2024, home prices jumped nearly 40%. That’s right—40%! (WSJ). Homes that were affordable a few years ago now cost more than a year’s worth of avocado toast.

• Wages Haven’t Caught Up
  While housing prices have gone wild, wages are stuck in a time warp. The result? Young adults spend a larger chunk of their income just trying to survive, let alone save for a down payment.

• Student Debt: The Silent Killer
  With the average student loan debt hovering around $37,000, many young adults can’t even consider buying a house. Their money is tied up paying off degrees that promised better salaries but often delivered underwhelming results.

• The Hunger Games of Housing
  Even if you somehow scrape together a down payment, good luck outbidding investors and cash buyers in a housing market with record-low inventory. It’s like the Hunger Games but with mortgages instead of bows and arrows.

Oh, and let’s not forget: In 2023, only 24% of home purchases were made by first-time buyers—the lowest percentage in over 40 years (NY Post). Ouch.

Retirees: Caught in the Price Trap

Retirees should be kicking back, enjoying life, and maybe even moving to Florida. Instead, many are struggling to find housing they can actually afford.

• Fixed Income vs. Rising Costs
  Retirees living on Social Security or pensions are seeing their budgets stretched thin. When your income doesn’t grow, but housing costs do, you’re stuck making some tough (and unfair) choices.

• Renters in Trouble
  For retirees who don’t own homes, rising rents are a nightmare. Many are paying upwards of 50% of their income just to keep a roof over their heads. Retirement isn’t supposed to be this stressful.

• Forced Downsizing
  While downsizing can be a smart move, it’s often not a choice—it’s a necessity. And finding a smaller, affordable place that’s also accessible and livable? That’s like finding a unicorn in your backyard.

Why This Hurts Everyone

The housing crisis isn’t just a problem for individuals—it’s a societal issue. Let’s get real about the ripple effects:

• Young Adults Stay Dependent
  With housing out of reach, many young adults are delaying marriage, kids, and financial independence. Parents are becoming full-time landlords for their grown children, which is awkward for everyone involved.

• Retirement Isn’t Secure
  When retirees can’t find affordable housing, it impacts their health, happiness, and financial stability. It’s hard to enjoy your golden years when you’re constantly worried about making rent.

• The Wealth Gap Widens
  Owning a home is one of the best ways to build wealth. When younger generations can’t buy, and retirees are forced to downsize or sell, the wealth gap between the haves and the have-nots only gets worse.

How Do We Fix This Mess?

Let’s cut to the chase: The housing crisis isn’t going to fix itself. Here’s what we can do:

1. Build More Affordable Housing
   This seems obvious, right? Unfortunately, zoning laws and NIMBYs (Not In My Backyard types) make it harder than it should be. Incentivizing builders to create affordable units and loosening zoning restrictions could help.

2. Offer Down Payment Assistance
   Programs that help first-time buyers with down payments or low-interest loans could make a huge difference. It’s not rocket science—just give people a little help to get started.

3. Regulate Rent Increases
   No one loves rent control, but when retirees and low-income renters are being priced out, it’s worth considering. There’s a middle ground between complete free-market chaos and overregulation.

4. Encourage Co-Housing and Shared Living
   Shared living spaces aren’t just for college kids. They’re becoming a practical solution for retirees and young adults alike. Plus, it’s nice to have someone to split the Wi-Fi bill with.

The Bottom Line

The housing market is broken—especially for young adults and retirees. But it doesn’t have to stay this way. With smarter policies, innovative housing solutions, and a little collective effort, we can make housing affordable again.

Because let’s be honest: A society where people can’t afford a place to live isn’t a society that works. It’s time to stop dreaming and start doing.