I dislike the term "dropouts." It implies that these young people have failed the system. It's often more accurate to say that the system has failed them. If you were running a business and every year you lost a quarter or more of your customers, you might start to wonder if the real problem was them or your business.
The idea that people routinely emptied chamberpots out windows into the street is one of the images of the past that has been taught to generations of school children. It's usually said to have been done in the Middle Ages and it's an image that has stuck with many people, particularly because we find it so disgusting. Unfortunately, like many popular ideas about the Middle Ages, it's largely nonsense.
There are a great many people who would love to own a home still hesitating and staying on the sidelines. Some don't have the down payment, or they may have credit problems. However, credit is loosening up; down payment requirements are coming down as well. Many are more able to buy than they think.