Today’s  New York Times featured an article that succinctly summarizes the daunting new challenges facing young people of modest means as they seek to enter the housing market. Here are some excerpts:

American home buyers are older, whiter and wealthier than at any time in recent memory, with first-time buyers accounting for the smallest share of the market in 41 years, the National Association of Realtors found in its annual profile of home buyers and sellers. White buyers accounted for 88 percent of home sales during the survey period, up from 82 percent during the same period a year earlier, reaching the highest level in 25 years, according to the association’s findings.

The new findings add weight to a hard truth that many young families have experienced as they struggle to save money to buy a home, competing in the most brutally competitive housing market in modern history: They have been elbowed out by buyers who have something they might never have — all cash.

The imbalance has made it nearly impossible for younger people with moderate and even middle incomes to own a home. The repercussions could be lasting, and deepen racial and generational disparities in homeownership. Without access to an investment that is usually a family’s biggest asset and a critical way to build generational wealth, a household may be shut out of one of the country’s best opportunities for upward mobility.

Homeownership offers another path to wealth, even if a home’s value remains flat: It provides the stability of a set, monthly mortgage payment that, as a person approaches retirement age, reduces to zero. While cash buyers have been insulated from the Federal Reserve’s moves to tamp down inflation by raising the federal funds rates, which indirectly impact home mortgages, first-time buyers are watching as what little buying power they had evaporates.

This is a feedback mechanism that can potentially supercharge wealth inequality in our economy,” said Austin Clemens, the director of economic measurement policy at the Washington Center for Equitable Growth, who studies housing inequities. “It’s hitting younger people, it’s hitting lower income people. And we also find that this is hitting Hispanic and Black households especially hard.”

Historically, first-time buyers made up about 40 percent of the market. But the share of first-time buyers fell to 26 percent during the 12-month survey period, from July 2021 through June 2022, plummeting to the lowest level since the trade association began tracking such data in 1981. The median age for first-time buyers was, at 36, the oldest it has ever been since 1981, as was the median age for repeat buyers, which rose to 59, during the survey period.

These hard realities are piling on top of a Newton market that has been trending upscale for decades. When I took an interest in housing a dozen years ago, I had a few clear goals in mind: to preserve or expand as much open space and parkland as possible; to protect the diminishing stock of affordable homes, usually modest Capes and ranch houses built after World War 2; and to limit the size of big developments while raising the percentage of affordable units in those developments. The teardown movement was gaining momentum, as was the influx of developers with big dreams and a host of requests for waivers of city ordinances in the name of “affordable housing.”

People like me, outgunned by realtors and developers, had no illusion we could halt the trends. We merely hoped to slow things down, to keep those developers honest, and to preserve what we could of the Garden City. We viewed socioeconomic, racial, ethnic, and generational diversity as a virtue . We lamented the ongoing gentrification of such mixed-income villages as Nonantum, Thompsonville, and Upper Falls. Even a dozen years ago, we knew we were fighting an uphill struggle. 

Minor victories and major setbacks came and went.The effort to halt tear-downs until Newton better grasped their full consequence failed utterly in the old Board of Aldermen. But several ill-conceived developments, in the face of determined opposition, never came to pass, and others like Northland and Austin Street were modified in hopeful ways, including larger numbers of affordable units. Note that most of the proposed developments do not offer ownership options or condominiums; rental units are now the coin of the realm. As a consequence, in line with the Times article, even families moving into “affordable” units forfeit the possibility of accumulating wealth and growing their assets as market prices rise. 

Sadly, almost all the vacant lots of Newton have been developed, usually becoming cookie-cutter homes either in the nouveau-barn style or Saint Tropez glass palace. Happily, in recent years Newton has expanded its green space, including the purchase of Webster Woods and the creation of the Upper Falls Greenway. Public-private partnerships have led to greater protection of natural environments like Cold Spring and Nahantan Park, Crystal Lake, and Bullough’s and Dolan’s Pond. Regrettably, no Landbank-style nonprofit has emerged to scoop up the remaining wooded lots and turn them into parks or protected forest habitat. Oh, well. 

Those purchasing McMansions must be affluent couples, probably two working adults employed in finance, the professions, or the computer and biotech worlds. I wonder if their demographics match the Times paradigm. Nothing sinful here: we live in a capitalist system, and our new residents have played the game fairly and accumulated the assets to purchase a home or rent a luxury apartment in our community. In the process, however, my idealism has faded as most of my goals have failed to materialize. When it comes to Newton’s changing demographics, I have become a realist, accepting that the Garden City, while remaining a wonderful place to live, will become ever wealthier and elite, and less diverse than ever.