Sixty percent of the youth in the United States plan to use the epidemic savings to buy houses or increase the housing crisis

The latest survey found that nearly 60% of American youth plan to use their savings during the epidemic period to buy houses. This will undoubtedly further bubble risk for the overheated American real estate market.
A recent survey of more than 1200 millennials (born between 1982 and 2000) and generation Z (born between the mid-1990s and 2010) conducted by zillow, the largest real estate website in the United States, shows that more than half (59%) of young people say they plan to use their savings during the epidemic to pay the down payment.
“Even during an unprecedented global pandemic, owning housing seems to be the priority and aspiration of those known as the ‘permanent rental generation’,” the report said The survey found that 83% of young people reported saving in at least one area during the pandemic.
Despite the impact of the epidemic, young Americans are still enthusiastic about buying houses – millennials will become more homeowners in 2020 than any other generation. By 2020, millennials will be between the ages of 25 and 40, which means that many of them are entering the golden age of home purchase.
Housing bubble intensifies
Considering that millennials have just reached the peak of their buying age, and some generation Z have started looking for a house, young Americans will continue to drive the real estate market in the next few years. The survey shows that the boom in the US housing market may not abate in the short term.
According to the latest data from the National Association of Realtors, the median selling price of existing houses in the United States hit a record high of 377000 US dollars in May, up 26% year on year. The increase is the largest since it was recorded in 1999 and the 111 consecutive months since March 2012.
Jim Reid, chief analyst at Deutsche Bank, commented that the current surge in US house prices is almost the same as before the global financial crisis. At present, house prices in the United States have reached an all-time high, which will become a “huge worry”.
Ronnie walker, an analyst at Goldman Sachs, has also warned that the continued imbalance between supply and demand in the US real estate market will lead to double-digit house price rises this year and next, and 5% – 15% of the appreciation will be transmitted to inflation. Goldman Sachs model predicts that the year-on-year growth rate of housing inflation will reach 3.8% by the end of 2022 and will exceed 4% in 2023. This means that housing prices will rise much faster than the 2006-2007 year real estate bubble.
U.S. interest rates hit a record low in 2020, making down payments easier than ever.
Senior Federal Reserve officials recently warned that the excessive boom in the real estate market could threaten monetary stability, and that the Federal Reserve may suspend the purchase of mortgage-backed securities earlier than suspending the US bond purchase program.

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