The Young Adult Homeownership Crises in the US and Denmark: The Role of Innovation in the Housing Market

Abstrakt

This paper seeks to understand the causes of and potential remedies to the challenges facing young adults who are trying to become homeowners in the US and Denmark. On the housing demand side, it considers long-term national-level data in four categories: state influence, economic and financial indicators, labor market factors, and socio-demographic trends. These findings, which are similar for both countries, support existing studies that argue that young adults are increasingly unable to become homeowners. These trends persist through the years following the financial crash, indicating that young adults’ needs in the housing market are not being met. The growing population rates in metropolitan areas and regional house price variation suggest that the housing problems are magnified on regional and city levels. Interviews with representatives and experts from the housing and construction industries in both countries serve as the local perspectives and guide the supply-side discussion. On the supply side current innovations are discussed as potential solutions to address the growing shortage of affordable housing units. However, the benefits and wide-scale application of these technologies are disputed, primarily due to governments, financing restrictions, opposition from local communities, and the structure of the housing sector. Final recommendations to support young adults in becoming homeowners are given, which incorporate innovation and address the complexities of the current market landscape.