Ask any real estate agent and they will tell you security is owning your own home!!.
Ask America’s Generation X and they are likely to tell you something very different.
The U.S. Federal Reserve Board’s Survey of Consumer Finances (SCF) for 2010 has reported what could be unprecedented levels of wealth destruction in the three short years between 2007 and 2010.
Median Family net worth across all age groups has fallen from $126,400 in 2007 to $77,300 USD in 2010, a fall of 38.8 per cent.
But it was families headed up by a person between the age of 35-44 that suffered the most destruction in household wealth. This group has seen median family net worth fall 54.4 per cent from $92,400 to $42,100 USD.
What did this cohort do so wrong?
As they started families, Generation X leveraged up into the housing market, towards or at the top of the bubble. When the bubble burst, they were left with mortgages on homes worth more than they paid for them.
Food for thought.
» Federal Reserve Bulletin, Changes in U.S. Family Finances from 2007 to 2010: Evidence from the Survey of Consumer Finances – U.S. Federal Reserve, June 2012.