Young people having a harder time buying homes, white paper says

JIJI

The growing burden of housing loans has made it increasingly difficult for younger members of society to purchase their own homes, a government white paper said Tuesday.

Between 1983 and 2008, the proportion of homeowners in their 30s dropped to 39 percent from 53.3 percent while homeownership among younger people more than halved to 7.5 percent from 17.9 percent, the 2012 land and infrastructure white paper shows.

A growing number of people under 40 are living in rented housing. The rate shot up to 59.7 percent from 39.7 percent, according to the government report, which was submitted to the Cabinet.

The report found that people in their 30s with housing loans set aside 19.8 percent of their disposable income for repaying the loans in 2009. The amount was 13.2 percent in 1989.

The increase can be attributed to deteriorating income, the land and infrastructure ministry says in the report.

It also observed that this age group’s housing loan repayment ratio constantly surpassed the overall average for the 20-year period.

The heavier repayment burden is believed to be behind the decline in the rate of owning a home for the group, the ministry said.