Where Have All the Young Home Buyers Gone? Check the Stock Market
Statistics & Probability
The rent vs. buy debate has taken on new meaning for Gen Z thanks to soaring share prices and more investment options. (Wall Street Journal)
Where this idea comes from
Start here — this is the source that inspired this exploration.
Introduction
Home ownership among young adults has fallen in many countries at the same time as stock markets have climbed, and some commentators link the two: if you can't afford a house, you invest in shares instead. This exploration tests that claim directly with public data — a national house-price index, a stock-market index, and mortgage or home-ownership rates by age group — rather than relying on the original article, which sits behind a paywall.
Guiding Questions
- The article claims young people invest in shares instead of houses. What data would test that claim?
- Compare the growth of house prices and a share index over the same period using indices.
- Is there a correlation between interest rates, prices and buying patterns? Calculate and interpret it.
- Build the rent-and-invest versus buy comparison for your city. Which wins under which assumptions?