Are There Any Rungs Left on the Housing Ladder?

A new report from PIMCO highlights some of the demographic changes that are helping to swing the preference of Americans from home owners to renters. The report, Are There Any Rungs Left on the Housing Ladder?, suggests graduates with large student loans and older Americans retiring may not hold the idea of owning a home in high esteem. They also simply may not be able to afford it.

Rod Dubitsky, an analyst with PIMCO, says first-time homebuyers are struggling financially and are likely to be long-term renters. At the same time older homeowners are less likely to upgrade into larger homes or invest in second properties. "All of this suggests downsized housing choices — one home instead of two, rent rather than own, smaller place rather than large. These choices could serve to reduce the dollars committed to housing investment," Dubitsky says.