These days it seems there are articles upon articles telling us why the new generation of 24-35 year old adults are not buying houses, instead opting to rent. http://www.nj.com/business/index.ssf/2012/09/millennials_are_slow_entering.html
The reasons range from the poor economy these young adults have experienced for almost half of their working life, the lack of jobs, the more stringent lending requirements banks are imposing on would be buyers these days, and most common, a desire to rent or live closer to the city and its local amenities. I call BS. All of these reasons play a significant factor to be sure, but I suspect there is a larger culprit- inexperience. While young adults have reasons to remain cautious and tough lending guidelines are no doubt making things harder than say from 1999-2006, they are not being faced with 20% prime interest rates like in the early 80's, nor are they likely to remember the housing bust in the late 80's and early 90's. So they are missing the boat on opportunity while rowing in their dingy. :http://www.mercurynews.com/business/ci_21454429/jeffrey-r-scharf-everybodys-business-housing-market-improves
Without new home buyers it makes it harder for older buyers to trade up and allow boomers to downsize. Without the years of wisdom that comes with seeing markets rise and fall, these so called smart millennials are missing out on the greatest opportunity of their lifetime as many can actually afford, get approved, and buy a house but instead are opting not to. The media touts this as a new thing (or way of living) when in reality it is a dumb thing, all of which serves to highligt that wisdom truly does come with age. Shocker, I know. My biggest fear is that instead of reading and soaking in articles like this: http://www.cdapress.com/real_estate/article_f4142405-98f7-5b2d-b86a-e808f058bf9b.html young home buyers will continue to hold back the market by not participating, only to eventually jump in after all the gains are made. So while the youngsters think they are being cute and smart they are actually setting themselves up to be holding the bag when everyone says the market is hot and they finally buy in- just in time for everyone to unload their homes at the top of the market to these smarty pants.
Just in case my rant was not clear, the real reason Millennials aren't buying is because they don't know any better, haven't lived long enough, and don't understand that you buy low, sell high.