dissertation on real estate ownership

Millennials and Real Estate Ownership 1

ADVERSE FINANCIAL EVENTS AND MILLENNIALS’ PERSPECTIVES ON REAL

ESTATE OWNERSHIP: A PHENOMENOLOGICAL STUDY

Author: LUTAO XIE

Professor: PAUL TAYLOR

University: Furtwangen University

City, State: Berlin

July 1, 22

Millennials and Real Estate Ownership 2

Many members of the Millennial generation came of age around the time of the 2008

financial crisis, which may have affected their professional and financial prospects as well as

their general outlook on the future. Millennials were also generally young adults when the

COVID-19 pandemic struck, potentially further destabilizing their life arcs. The act of

purchasing a home, long seen as a hallmark of mature adulthood, may have been affected by this

sequence of events. This document consists of a research proposal on the topic of adverse

financial events and Millennials’ perspectives on real estate ownership. The proposal will

provide background information on the topic, formulate research questions, delineate the

methodology of the study, and consider the timescale and resources needed for successful

implementation of the study.

Background

Homeownership has dropped sharply over the course of the last 15 years (Rosen et al.

2017, p. 4). The research literature suggests that Millennials face unique obstacles with respect to

buying a house that their parents, mostly in the Baby Boomer generation, did not need to

confront. According to Dickerson (2016, pp. 442-454), these obstacles include income

insecurity, unemployment and underemployment, income inequality, lack of savings, college and

student loan debt, and lack of family formation. The point regarding family formation suggests

that the factors at play in this situation are quite diverse. Manning et al. (2019, p. 327) note that

Millennials are getting married later in life than previous generations, if indeed they get married

at all, and that their expectations in this regard are such that cohabitation and the single life are

often considered to be legitimate alternatives to marriage. Family formation is usually connected

to the move of purchasing a house. It is somewhat unclear whether Millennials are delaying

Millennials and Real Estate Ownership 3

family formation due to financial precarity or whether their financial precarity is caused by their

delays in family formation, but the first of these options is the more likely one.

Millennials have had their financial prospects hamstrung since quite early in their

generational life arc. As Worth (2019, p. 441) observes, Many Millennials graduated from

college and found themselves in the midst of the immediate aftermath of the 2008 economic

crisis. This crisis, of course, was centred on the housing industry and was brought about

primarily as a result of the scandal of subprime loans and predatory lending (Foote et al. 2008, p.

291). This crisis may have affected Millennials’ perspectives regarding real estate ownership in

two main ways. Firstly, Millennials spent most or all of their young adulthood in the world

brought about by the economic crisis, which means that they may not have had the financial

security to even consider purchasing real estate at about the same time in their life arcs that

previous generations had done so. Secondly, given that the crisis specifically pertained to the

housing industry, Millennials may have also become suspicious in general of the relative merits

versus risks of purchasing real estate.

The COVID-19 pandemic emerged 12 years after the 2008 economic collapse and has

exacerbated the housing crises around the world (Rogers and Power 2021, p. 315). In order to

appreciate the economic significance of this event for Millennials, one should perhaps consider a

concrete example of a person who was born in the year 1986. This person would have been 22

years old during the 2008 crisis, which is to say that they would have just graduated from

university. It is extremely likely that they acquired student debt in the process, given that such

debt is a serious problem affecting the generation as a whole (Mountain et al. 2020, p. 5). Having

graduated into an economy plunging into recession, the Millennial under consideration may not

have been able to find the kind of work that would allow them to both pay off their debts and

Millennials and Real Estate Ownership 4

save money for the future purchase of a house. Then, over the course of the next decade, this

person would have struggled under such circumstances and perhaps made progress. Then, in

2020 when the person was 34, the COVID-19 pandemic emerged and wreaked havoc around the

world, forcing economic shutdowns as nations struggled to mitigate the spread of the virus

(Wilson 2021, para. 1). The Millennial, who may have finally begun to develop their career

prospects, was then forced to refrain from work. Now, in the aftermath of the pandemic, the

world is experiencing severe economic shocks, and it may well be at the precipice of yet another

recession (Foroni et al. 2022, p. 596).

When one considers this overall trajectory of the Millennial generation, it becomes rather

easy to imagine why Millennials may be delaying many of the key life transitions, such as

getting married and buying a house, that have generally been markers of adulthood (Thomson

2012, para. 2). The fact of the matter is that the economic events and circumstances that have

surrounded the young adulthood of Millennials has made it virtually impossible for many of

them to pursue the traditional journey toward adulthood that was typical of previous generations

such as the Baby Boomers (Xu et al. 2015, p. 201). In this context, it is surely worth

reconsidering stereotypes about how Millennials tend to be lazy or averse to hard work (Alico et

al. 2022, p. 1). The broader economic-historical picture that has been sketched above reveals that

Millennials have been extremely unfortunate in terms of the alignment between young adulthood

and economic crises. This generational life arc has objectively inhibited Millennials’ potentials

to achieve typical markers of adulthood such as homeownership. However, it is also true that this

streak of misfortune may have also led many Millennials to lose faith in traditional notions of

success or adulthood and to instead invest in areas of life that are less prone to failure. Indeed,

given their generational experiences, one could hardly blame Millennials if they were to wonder

Millennials and Real Estate Ownership 5

when the next crisis is going to strike and render all their hard work and aspirations null and

void.

Research Questions

The proposed research study will be informed by the following research questions.

1. How do Millennials feel about their prospects for achieving the traditional markers of

adulthood, especially real estate ownership?

2. What are Millennials’ perspectives regarding the ways in which the 2008 economic crisis

affected their views on real estate ownership?

3. What are Millennials’ perspectives regarding the ways in which the COVID-19 pandemic

affected their views on real estate ownership?

4. How do Millennials feel about their future prospects for real estate ownership in relation

to the relative likelihood of future adverse economic events?

These research questions will enable the researcher to delve into Millennials’ perspectives on

real estate ownership in connection with their generational experiences of adverse economic

events.

Methodology

The methodology for the proposed study will be qualitative and phenomenological in

nature. Qualitative methodology is appropriate for this research given that the purpose of the

study is to explore the perspectives of and experiences of the subjects of the study. Qualitative

research is well-suited to addressing research questions of this kind (Merriam and Tisdell 2015,

pp. 3-22). Moreover, the phenomenological approach is also appropriate because the research

questions of this study focus on the subjects’ experiences of a specific phenomenon, namely real

estate ownership in light of adverse economic events. Phenomenology calls attention to the ways

Millennials and Real Estate Ownership 6

in which people subjectively experience the world and events within the world (Cresswell and

Poth 2017, pp. 75-81; Moustakas 1994, pp. 43-67). As such, a good fit exists between the

research methodology for this study and the research questions of this study.

The researcher will recruit subjects for the study using the purposive sampling technique.

This technique entails the selection of subjects on the basis of the researcher’s personal

knowledge and awareness of the contributions that the subjects will be able to make to the study

and the extent to which the subjects’ responses will likely be representative of the views of the

broader population of interest (Battaglia 2022, para. 1). Purposive sampling is a non-random

form of sampling. However, non-random sampling is acceptable for the purposes of qualitative

research since the findings of the study will not be subjected to procedures of statistical

generalization as they would in the case of quantitative research. The researcher will require all

subjects to provide their informed consent for participation in the study, which is an essential

ethical requirement for any research involving human subjects (World Medical Association

2008).

Data for the study will be gathered through the use of the focus group technique. A focus

group is essentially a group interview, with the researcher formulating a semi-structured protocol

to guide the discussion but otherwise allowing the subjects to speak at length about any thoughts

they may have regarding the topic of interest (Jarvis and Barberena 2022, para. 1). A total of 7

subjects will be recruited for the study. This small number is appropriate for a qualitative study

since the purpose of the study is to produce depth of insight rather than statistically generalizable

data. The researcher will record the focus group using an audio device and carefully transcribe

all of the focus group data for the purposes of data analysis. Once the transcription has been

produced, the researcher will ask the subjects of the study to review the transcript to ensure that

Millennials and Real Estate Ownership 7

their thoughts have been conveyed in a complete and accurate manner. The researcher will

provide subjects with the opportunity to make revisions and additions to the transcript during this

process.

Data analysis will proceed through the constant comparative method, which involves the

researcher iteratively reading over the transcripts with the purpose of identifying key words and

themes that recur across the dataset (Merriam and Tisdell 2015, p. 32). The researcher will begin

by identifying key words and then organize those words into clusters of meanings. These clusters

will then be synthesized into themes, and those themes will constitute the main findings of the

study. The researcher will report these themes and accompany them with key quotations from the

dataset that illustrate and provide evidence for the validity of the themes. Finally, the researcher

will draw conclusions and implications from the themes produced through the data analysis

procedure.

Outline

The final research report will include the following sections:

1. Introduction

2. Literature Review

3. Methodology

4. Findings

5. Conclusion

The researcher can adapt the introduction, literature review, and methodology sections of the

final report from the present research proposal. The formulation of the findings and conclusion

sections, however, will first require the implementation of the study protocol.

Millennials and Real Estate Ownership 8

Timescale

The timescale for this project will be approximately 12 weeks. The following table

displays a projection of how the project will unfold across this period of time.

Week Activity

1 Formulate and approve research questions

2-3 Recruit the subjects and obtain informed consent

4 Conduct the focus group

5-6 Transcribe focus group data and check the transcript with the subjects

7-8 Conduct the data analysis

9-10 Assemble the key themes with supporting quotations

11-12 Write all sections of the final research report

Table 1. Projected timescale for research project.

Resources Needed

Minimal resources will be required for this research project since the project consists

primarily of the researcher speaking with subjects about their experiences. The researcher will

need an audio recording device, but a computer or smartphone should be able to adequately fulfil

this function. In addition, the researcher may also need to purchase software to assist with the

data analysis process. NVivo software may be appropriate for this function in light of the

qualitative nature of the project. The researcher will also need access to word processing

software such as Microsoft Word or Google Docs in order to write the final report, but this

resource is commonplace among researchers and college students and, indeed, was required to

produce this proposal in the first place.

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References

Alico, I.S., Lagumbay, J.V., Napoles, I.V. and Ranes, C.J.V., 2022. Understanding Millennials:

Indolent behavior of Millennial students. Scholares Journal, 1(1), pp. 1-18.

Battaglia, M.P., 2022. Purposive sample. [Online] (updated 2022) Available at:

<https://methods.sagepub.com/reference/encyclopedia-of-survey-research-

methods/n419.xml> [Accessed 25 June 2022].

Cresswell, J.W. and Poth, C.N., 2017. Qualitative inquiry and research design: Choosing among

five approaches. Thousand Oaks: SAGE.

Dickerson, A.M., 2016. Millennials, affordable housing, and the future of homeownership.

Journal of Affordable Housing & Community Development Law, 24(3), pp. 435-465.

Foote, C.L., Gerardi, K., Goette, L. and Willen, P.S., 2008. Just the facts: An initial analysis of

subprime’s role in the housing crisis. Journal of Housing Economics, 17, pp. 291-305.

Foroni, C., Marcellino, M. and Stevanovic, D., 2022. Forecasting the Covid-19 recession and

recovery: Lessons from the financial crisis. International Journal of Forecasting, 38(2),

pp. 596-612.

Jarvis, S.E. and Barberena, L., 2022. Focus group. [Online] (updated 2022) Available at:

<https://methods.sagepub.com/reference/encyclopedia-of-survey-research-

methods/n192.xml> [Accessed 25 June 2022].

Manning, W.D., Smock, P.J. and Fettro, M.N., 2019. Cohabitation and marital expectations

among single Millennials in the U.S. Research Policy Review, 38(3), pp. 327-346.

Merriam, S.B. and Tisdell, E.J., 2015. Qualitative research: A guide to design and

implementation. Hoboken: John Wiley & Sons.

Moustakas, C., 1994. Phenomenological research methods. Thousand Oaks: SAGE.

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Mountain, T.P., Cao, X., Kim, N. and Gutter, M.S., 2020. Millennials’ future homeownership

and the role of student debt. Family and Consumer Sciences Research Journal, 49(1), pp.

5-23.

Rogers, D. and Power, E.M., 2021. The global pandemic is accelerating housing crises.

International Journal of Housing Policy, 21(3), pp. 315-320.

Rosen, K.T., Bank, D., Eckstein, A., Stern, M. and Tcheau, M., 2017. Homeownership in crisis:

Where are we now? [Online] (updated 2017) Available at:

<https://escholarship.org/content/qt31q9h8m0/qt31q9h8m0.pdf> [Accessed 25 June

2022].

Thompson, D., 2012. Adulthood, delayed: What has the recession done to Millennials? [Online]

(updated 14 February 2012) Available at:

<https://www.theatlantic.com/business/archive/2012/02/adulthood-delayed-what-has-the-

recession-done-to-millennials/252913/> [Accessed 25 June 2022].

Wilson, N., 2021. Millennials and homeownership: Thwarted by Covid, Omicron adds a further

threat. [Online] (updated 15 December 2021) Available at:

<https://www.forbes.com/sites/nigelwilson/2021/12/15/millennials-and-home-ownership-

thwarted-by-covid-omicron-adds-a-further-threat/?sh=6d0add0022c8> [Accessed 25 June

2022].

World Medication Association, 2008. Declaration of Helsinki. [Online] (updated 2008)

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[Accessed 25 June 2022].

Worth, N., 2019. Making sense of precarity: Talking about economic insecurity with millennials

in Canada. Journal of Cultural Economy, 12(5), pp. 441-447.

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Xu, Y., Johnson, C., Bartholomae, S., O’Neill, B. and Gutter, M.S., 2015. Homeownership

among Millennials: The deferred American dream? Family and Consumer Sciences

Research Journal, 44(2), pp. 201-212.