Posted on 09/15/2014 12:32:49 PM PDT by Lorianne
This must be part of the explanation why home sales in the expensive parts of California, which is where most people live, are collapsing: according to a Harris Poll on behalf of electronic broker Redfin, 92% of millennials who don’t already own a home do not plan on buying one in the future. Ever.
These people, now between 25 and 34, are in their peak home-buying age. They’re the much sought-after first-time buyers. They’re the foundation of the market. But not this generation. Homeownership rate among them, according to the Commerce Department, already plunged from 41% in 2008 to 36% currently; as opposed to 65% for all Americans [Here’s the Chart that Shows Why the Housing Market Is Sick].
These folks are not “pent-up demand” accumulating on the sidelines, as the wishful thinkers have proclaimed.
“Millennials who flock straight from college to San Francisco and other expensive cities are making a choice to spend their income on quadruple-digit rents and eight-dollar gourmet hot dogs from trendy food trucks,” explained Redfin San Francisco agent Mark Colwell. “This means they’re not saving for a down payment, further removing them from the housing market.”
(Excerpt) Read more at wolfstreet.com ...
They don’t like to mow grass.................
They don’t have jobs.
Just wait until they grow up in a decade (yes. they’ll take longer) and have a baby and seriously engage in marriage. they will start thinking . . . hmmmm. maybe a house (or a condo) makes some sense.
Also, student loan debt is about to surpass most other forms of loan debt. Why would someone under water in student loan debt take on a home loan as well?
>> “Millennials who flock straight from college to San Francisco and other expensive cities
I sure hope they all stay there, too.
Do NOT move to the country, millennials! It’s a hard life.
Recommend you live, mate, spawn and die there in the Big City.
Won’t matter.
Who’d pay premium prices for a home where you’ll soon have to pay thousands for the walled fence, additional thousands for your armed guards and a hundreds per month for your Spanish to English translator?
Ditto.
In other words, the universities harvested them before the construction companies had a chance to.
What...they don’t want to sign up for an interest only mortgage or spend a million dollars on a postage stamp lot and a sugar shack?
Can you blame them...I sure don’t.
You're too late ... I done ex-caped! :O
-ditto-
I don’t have job, so I am renting.
Stay away from the cans. Buyers hate cans.
You’re one of us... that don’t count as “escaping”. :-)
Home ownership has lost a lot of its luster for many people,
and not just young people, and not just in California.
Renting makes for easier mobility; avoids the ups and downs of the market;
and avoids getting hit with any huge unexpected maintenance costs.
Many are happy to rent an apartment or condo,
or rent a house and hire someone to cut the grass,
and let the landlord worry about everything else.
Hell, I’m considering it my own self.
My knowledge of CA house prices is from watching “House Hunters” and the like.
Housing is ABSURD in most of CA.
$50K houses go for $1,000,000 and it’s not like they are sitting on the beach. Just endless suburbs.
It should crash.
Interesting
My daughter and her husband own six rental properties, flip three houses a year (last three years) plus own the one they live in....guess they are just a different breed
When homes cost so much that we can’t afford them, as well as finding it hard to find a good job.. you do the math.
I am in this age group.
Bingo. Two posts out of the chute, and one guy nailed it.
25% of our workforce out of work. 25% more making half what they did prior to 2008. New employees being paid less than past generations for the same work...
I tell you folks, this move to get goods and services more cheaply from overseas, has cost us in ways we never would have imagined.
Multiple trillions siphoned off our soil by foreign manufacturers. Illegals working for wages that will only support a person in poverty. U. S. Citizens having to compete here for jobs that can be done more cheaply other places...
You know, it all sounds so great until you watch what is happening to our society under these pressures.
We didn’t become the greatest nation on earth utilizing the policies we are today. As it continues to get worse, folks will speculate why. Most often they will miss it completely.
Our leaders have implemented the wrong policies, and some of us mistook support for the capitalist model, as the loyalist way to go, not realizing you can destroy yourself doing a good thing too.
Deflating our own nation to inflate another one is just comical to watch. People just can’t get over the fact that implementing these policies has contributed to destroying our nation.
What changed after 1992 folks? Any guesses?
Man I’ve seen some dense people, but this is just nothing more than national suicide.
It’s all about location...in my neck of the woods, a crappy tract home on about 1/4 acre will set you back about $150k...
Of course, it comes with all of the amenities of living in the high desert; wind, sun, sand, and heat.
Seriously though, I do agree that the prices as compared to somewhere else in the US are absurd...can’t wait to leave...soon.
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