3 ms·

If 66% of households are in owner-occupied housing, how small is this middle class that can’t afford homes? Is the median (or even 40th percentile) household n

If 66% of households are in owner-occupied housing, how small is this middle class that can’t afford homes? Is the median (or even 40th percentile) household not middle class? https://fred.stlouisfed.org/series/RHORUSQ156N https://fred.stlouisfed.org/series/RHORUSQ156N

jeffbee 3y ago
There is one rather large and serious problem with this statistic: it censors suppressed household formation. Because it is the tenure of households, there is no consideration for the households that aren't being formed, for example because an adult still lives with their parents. That person is counted under "homeowner" which is deeply misleading. The worse the housing crisis gets, the better this statistic looks.
weberer 3y ago
Note that the survey is about perception, not whether or not they actually can afford it.
- sokoloff 3y ago
  Sure. If we surveyed a bunch of Americans who perceived the world was flat, I expect that we'd augment that perceptual survey with additional data and context.
  - deleted 3y ago
    [deleted]
rockinghigh 3y ago
Someone may live in an owner-occupied home and not own it--e.g.: adult children living with their parents, cohabitating adults. > The share of young adults ages 18 to 34 who have formed an independent household has declined since 2010, while the share living with their parents has increased sharply. In 2010, less than one-third (32 percent) of young adults ages 18 to 34 were living with their parent(s), but this share jumped to 35 percent by 2017. The increase was sharpest among 25- to 29-year-olds, rising from 21 percent in 2010 to 26 percent in 2017. The share of 30- to 34-year-olds living with their parent(s) also increased by 4 percentage points across this period. https://www.prb.org/resources/u-s-household-composition-shifts-as-the-population-grows-older-more-young-adults-live-with-parents/ https://www.prb.org/resources/u-s-household-composition-shif...

jeffbee 3y ago

There is one rather large and serious problem with this statistic: it censors suppressed household formation. Because it is the tenure of households, there is no consideration for the households that aren't being formed, for example because an adult still lives with their parents. That person is counted under "homeowner" which is deeply misleading. The worse the housing crisis gets, the better this statistic looks.

weberer 3y ago

Note that the survey is about perception, not whether or not they actually can afford it.

sokoloff 3y ago
Sure. If we surveyed a bunch of Americans who perceived the world was flat, I expect that we'd augment that perceptual survey with additional data and context.
- deleted 3y ago
  [deleted]

rockinghigh 3y ago

Someone may live in an owner-occupied home and not own it--e.g.: adult children living with their parents, cohabitating adults. > The share of young adults ages 18 to 34 who have formed an independent household has declined since 2010, while the share living with their parents has increased sharply. In 2010, less than one-third (32 percent) of young adults ages 18 to 34 were living with their parent(s), but this share jumped to 35 percent by 2017. The increase was sharpest among 25- to 29-year-olds, rising from 21 percent in 2010 to 26 percent in 2017. The share of 30- to 34-year-olds living with their parent(s) also increased by 4 percentage points across this period. https://www.prb.org/resources/u-s-household-composition-shifts-as-the-population-grows-older-more-young-adults-live-with-parents/ https://www.prb.org/resources/u-s-household-composition-shif...