Fed's Brainard: Millennials More Wary Of Homeownership

The generation that has come of age in the Great Recession are more wary than their parents about the merits of buying a home, which could impact their ability to build wealth, said Federal Reserve Governor Lael Brainard, on Thursday. In a speech at a Fed conference on income inequality, Brainard said research shows that young adults "see some risk that houses could become financial albatrosses due to events beyond their control." The percentage of renters in the 18-to-34 age group who thought housing was a safe investment dropped from 85% in 2003 to 59% earlier this year, Brainard said. "If this decline in homeownership among young people becomes permanent, the implications for asset building for the future could be of concern, since homeownership remains an important avenue for accumulating wealth, particularly for those with limited means," the Fed governor said.