Vice has this crazy read about the current generation of British 20- and 3o-somethings, who just don’t and can’t stop partying and living like teenagers. Basically, for many of these people, life has gotten comfortable enough to the extent that people don’t have any meaningful purpose due to a lack of significant responsibilities like marriage, parenting and owning a home that our parents went through at the same age. As a result, a lot of people spent a lot of time partying and getting drunk and wasted, in other words, living like they did as teenagers and university students.
But it’s not all their fault because decent jobs are scarce while home prices have risen so much that most working- and middle-class young folks find it hard to buy their own home. I’m not British, and neither does my life resemble the worst parts of the article, but I can feel some sympathy. The problem is especially bad in London where a lot of “endies” – employed with no disposable income or savings – struggle to save money, especially to buy a home. Though one could wonder why young people in other parts of the Western world like the US, Canada or say, Western Europe aren’t engaging in the same kind of drunken antics frequently as well, despite facing similar problems of skyrocketing home prices, comfortable lives, and delayed marriages and birth rates.
The problems, socially though not behaviorally, exist in East Asia too, specifically Hong Kong and Taiwan with regards to the low levels of marriage (which includes myself as I’m single), births, and home ownership due to skyrocketing home prices. Japan also has this problem, and back in 2012, I came upon an FT article that described this problem with young people’s lack of ambition and chances.
In HK, the problem is especially acute because home prices are among the, if not the highest in the world and many of these homes are so tiny (and these aren’t even cheap). Affordable and public housing is sparse and a significant number of new developments are luxury apartments. A lot of young people are living with their parents, even young married couples working decent jobs like the couple mentioned in this article, incidentally about HKers escaping rising home prices by immigrating to Taiwan.
Yet home prices in Taiwan are not cheap for young Taiwanese either. The problem is especially serious in Taipei where rising home prices mean many young, middle-class people can’t afford homes and have been forced to rent or move out to surrounding areas. The recent local election saw the ruling KMT lose municipalities across Taiwan including Taipei due to problems like inequality and out-of-reach home prices (and what many perceive as a focus on boosting China economic ties that only benefit local tycoons while unable to benefit most people).
Incidentally I missed this news way back in August, but it’s an interesting development that mainlanders have been buying homes and property in Taiwan since 2002, mainly through Taiwanese middlemen or shell corporations set up in other places like Hong Kong. Hell, there’s even an apartment project in Tamsui that was built by a mainland developer (through its Singapore associate company). Allowing more mainland buyers in Taiwan to buy homes would also push prices up, or rather push developers to build more luxury apartments like Hong Kong, since these mainland buyers are mostly wealthy.
In Toronto, the biggest city in Canada, things are tough too when it comes to buying apartments (condominiums). So tough that for many 30-something couples, the main way they’re able to afford homes is the “Bank of Mom and Dad” – money from parents.
Frankly, this could be applied to Hong Kong, Taiwan and China. While I’ve yet to see articles that explicitly state this, I know from talking to people and family that many parents in East Asia pay for their children’s homes or at least pay off the deposit.
At the same time, it’s not as if young people can be spared all blame. There are other factors too such as that with the development of technology and materialism, there are so much more things to spend money on such as vacations, electronic devices and services. And as such, it’s harder to save up money and most young people don’t develop this habit.
In some countries like the US, this is exacerbated by a situation where things like say, health care and tuition are getting higher while clothes and electronic devices like TVs and computers are getting cheaper.
The problem is less so in East Asia, especially in Taiwan where health insurance is nationwide and extremely affordable.
This trend of home prices rising way beyond the reach of young, educated workers seems to be prevalent across the world, from the UK to Canada to East Asia to even China. And while it hardly gets mentioned, I’m certain housing markets and economies face a looming crisis down the road as societies age, birthrates drop, and 20- and 30-somethings are unable to continue buying homes at the same rate as their parents and grandparents.
Hopefully the future will not be as bleak for current 20- and 30-somethings in Asia like how the Vice article suggests it is in the UK.