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Hey, Gen-Xers, Housing Mess Is Your Fault

They borrowed too much to avoid fractured family of their youth

By Kristina Loew, Newser User

Posted Dec 23, 2008 5:30 PM CST

(Newser) – Stung by the divorces and TV dinners of their youth, Gen-Xers spent whatever it took to make a happy home for themselves and their kids—even when they couldn't afford it, writes Susan Gregory Thomas in Babble. OK, that may be "harsh and exaggerated," she notes. But from massive mortgages to tricked out-kitchens, Gregory says they (and, therefore, she) share the blame for our current financial woes.

More than 61% of Gen-Xers owned homes in 2005—more than any other generation—as those "crawling our way out of the wreckage of the dot-bomb period" found no-money-down mortgages irresistible. Assured of their earning potential—their median income in 2003 was about 50% higher than older baby boomers—"the collective feeling was, basically: screw stocks, invest in a home, pay for it when you get back on your feet."

[Images (3)]

[Quotes (2)]

The days of Gen-X's youth made them yearn for a solid home for their own children. (Flickr)

Life in the 'burbs, circa 1974. (Flickr)

Sign of the times: Foreclosure. (Flickr)

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We sneered at Yuppies' conspicuous consumption, but credit card market research reveals that we spend 20% more on luxury goods than Yuppies ever did—especially if it has anything to do with home. - Susan Gregory Thomas

But don't take my word for it: Look at the numbers. The housing statistics from that nesting frenzy of the late '90s to mid-'00s are a revelation, like a bad holiday trip with the Ghost of Christmas Past. Buckle up. - Susan Gregory Thomas

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Hey, Gen-Xers, Housing Mess Is Your Fault