promoearn: The Daily Money: Are we becoming a nation of renters?

ALL THE MONEY NEWS YOU NEED TO KNOW

Thursday, June 23

Good morning and happy Thursday, Daily Money readers. It's Jayme Deerwester, back with you. We're almost to the weekend! But I'm afraid the good news kinda stops there.

President Joe Biden's proposed three-month federal gas tax holiday was a big topic of discussion Wednesday, but will it really help Americans? Even if passed by Congress – which is a big if – experts see such a move as only providing mild temporary relief, if any, for consumers.

First of all, it's up to individual gas stations how much of of the 18-cent-per-gallon savings will be passed on to consumers, says AAA spokesperson Andrew Gross. And states may not be willing to give up revenue by suspending their own taxes.

Furthermore, a three-month holiday doesn't allow much time to increase supply, which would lower costs. And then there's the issue of limited refinery capacity to supply more.

"Unless the U.S. government is able to find a refinery it can help restart or ramp up production in the next few months, the Biden administration will be left with few good options," Natasha Kaneva, JPMorgan's head of global commodities research, wrote in a report.

So on that cheerful note, let's get to the rest of today's consumer news.

Are we becoming a nation of renters?

Homeownership is at the core of the American dream. A home is the most valuable asset many of us will ever own, a pool of equity that can be tapped to pay a child's tuition or cushion our retirement. And the central role homeownership plays in our financial security is perhaps never more clear than when we see so many struggle to make it a reality.

"I definitely think more first-time home buyers are being priced out of the real estate market,'' says Taylor Marr, deputy chief economist with the real estate brokerage Redfin. "That's pretty troubling because that's the number one way to build wealth.''

So, are we potentially becoming a nation of renters?

"In the last year or two, we have seen ... the number of renter households going up,'' says Kate Reynolds, a principal policy associate with the Urban Institute. By the first quarter of this year, there were over 1 million more renter households than two years earlier, the group says.

The uptick "is pretty significant,'' says Reynolds, and "mostly driven by the fact that many renters, especially higher-income renters who would otherwise look at buying, are probably not ... because of the high prices.''

Apprenticeships, certificates offer low-cost alternative to college

While educators believe they're doing well preparing their students for work, youths and companies are less impressed. Forty-two percent of employers and 45% of youth believed new graduates were adequately prepared for entry-level jobs compared with 72% of education providers, according to a 2013 global study by McKinsey.

"The education-to-employment system fails for most employers and young people," it said. "Examples of positive outcomes in education to employment are the exception rather than the rule."

That's leading more people to question the value of a college education, especially in the face of soaring costs. A recent Gallup poll showed that 46% of parents said they would prefer their child pursue something other than a bachelor's degree, and more than one-third cited finances as an obstacle . Meanwhile, just 56% of adults under age 30 who went to college said the benefits of their education outweighed the costs, according to a Federal Reserve study released last month.

That's leading more young people to consider alternate educational paths such as apprenticeships and employer-operated certification programs. These routes not only cost far less than a four-year degree – some are free or even pay students.

🎵 Mood music 🎵

Kenny Chesney's 2016 track "Rich and Miserable" neatly sums up the frustration of doing all the things one is supposed to do in order to climb the economic ladder, only to be told they have even further to go.

"We're too young until we're too old. We're all lost on the yellow brick road. We climb the ladder but the ladder just grows."

About The Daily Money

Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you. It even comes with its own Spotify playlist a listen. It features every song quoted here.

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