Many Americans fixed 30-year deals when rates were between 2 and 3 percent - effectively trapping them in their current home.
In the US today young people are facing one of the most volatile property markets in recent memory thanks to soaring mortgage rates. He added: 'Twenty-two dollars several times a week could go towards a deposit on a house.' The concept is thought to have started from a 2016 opinion piece in The Australian written by demographer Bernard Salt who observed: 'I have seen young people order smashed avocado with crumbled feta on five-grain toasted bread at $22 a pop and more.' Many commentators have noted that younger generations are more likely to splurge on niceties such as avocado toast brunches rather than save for a home - hence Whitney's nickname. Similarly Census data reveals only 10 percent of homeowners are under the age of 35. 'What is incredible is that 70 percent of US residential real estate is owned by folks over 50,' she said.įigures from the National Association of Realtors show that the average age of a first-time homebuyer is now at a record-high of 36 years old. Whitney noted that there are now also more younger people living at home with their parents than there has been historically - although this trend has decreased somewhat since the Covid-19 pandemic. Meredith Whitney, who was dubbed the 'Oracle of Wall Street', has warned how not owning homes hurts the 'avocado toast generation.'
