Addressing the Global Housing Challenge: An Analysis of Barriers Young Individuals Face in Attaining Homeownership

By: Bennett Artizada

The ongoing reality faced by countless young individuals is that the dream of homeownership is increasingly unattainable. Factors such as rapidly rising house prices, an increase in insurance, and the burden of student debt have transformed homeownership from a realistic objective into a distant aspiration. This troubling trend not only affects the financial stability of young people but also impacts their overall sense of security and future planning. Understanding the complexities of this crisis is crucial for addressing the needs of a generation striving for independence and stability in an increasingly competitive world.

The global housing crisis has emerged as one of the most pressing challenges of our time, affecting millions of individuals and families across diverse socioeconomic backgrounds. “The UN’s urban development agency estimates that an astonishing 2.8 billion people worldwide lack access to adequate housing, secure land, and basic water and sanitation services- that’s around 40 percent of the global population. This includes more than 1.12 billion people living in the slums of informal settings” (United Nations, 2025).

Many are faced with the harsh reality of skyrocketing home prices and rental rates, leading to a lack of affordable housing options. One of the main reasons is that the U.S. has a low inventory of houses compared to the number of buyers. This situation not only threatens the economic stability of communities but also undermines social cohesion and well-being. According to the U.S. Department of the Treasury, “Average homeowners insurance premiums per policy increased 8.7 percent faster than the rate of inflation is 2018-2022,”. Additionally, over the past five years, U.S. home values have increased by roughly 8-9% per year on average, while over the past ten years, they’ve risen about 6-7% on average.”

The rising insurance prices, coupled with increasing home values, present a challenge for prospective home values, homeowners, and current property owners alike. The cost of insurance continues to escalate in response to factors such as climate change, natural disasters, and many individuals find themselves facing a financial prison. Simultaneously, the increasing home values further intensify the pressure on those entering the housing market, often inhibiting individuals from securing stable and sustainable living conditions.

In today’s fast-paced and competitive world, the burden of student debt has become a pressing issue for many young adults. This can put financial strain not only on their ability to thrive in their careers, but also plays a significant role in homeownership and starting a family. The average federal student loan debt is $39,075 per borrower, and it may take close to 20 years to pay off their student loans (Melanie Hanson, 2025). This economic struggle delays homeownership aspirations and also contributes to a broader housing crisis where young people struggle to find affordable options. In turn, it can leave many young individuals feeling trapped in this difficult situation.

The global housing crisis presents a challenge that significantly impacts young people's aspirations for homeownership and overall financial stability. The combination of soaring home prices, rising insurance costs, and burdensome student debt creates a perfect storm that leaves many feeling trapped and unsure of their future. Addressing these issues with urgency and foresight can pave the way for a more equitable housing market that not only supports the independence of young individuals but also fosters social stability for generations to come.

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Works Cited

Cook, M. (2025, August 14). The Long-Term Effects of Student Loans | ACE Blog. American College of Education. https://ace.edu/blog/the-long-term-effects-of-student-loans/

Hanson, M. (2024, August 16). Average Student Loan Debt. Education Data Initiative. https://educationdata.org/average-student-loan-debt

McAllister, R. (2025, April 10). Average Home Value Increase Per Year in the US, 5 Years, 10 Years - North American Community Hub. North American Community Hub. https://nchstats.com/average-home-value-increase-us/

U.S. Department of the Treasury. (2025, January 16). U.S. Department of the Treasury Report: Homeowners Insurance Costs Rising, Availability Declining as Climate-Related Events Take Their Toll. U.S. Department of the Treasury. https://home.treasury.gov/news/press-releases/jy2791

UN searches for solutions to global housing crisis. (2025, May 29). UN News. https://news.un.org/en/story/2025/05/1163851

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