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 ...
$8 for gourmet hot dogs from trendy food trucks??? Really??? This is what yuppies do??, for a freaking hot dog???
They don't have jobs that are stable enough to assume they'll be in an area long enough to make home ownership worthwhile. They know the housing market is imperfect and if they have to sell in order to move they could get stuck with a loss. Besides that, their lifestyles have for most of them never involved mowing the lawn or doing household chores.
And then there's that "trendy" situation, Starbucks and microbreweries and all that.
Around here, some of the houses (older and good bargains, established neighborhood) have been purchased by millenials. I find that encouraging that some of them are thinking things through.
Exactly.
Location Location Location.
Take the house on Green Acres for example. Transplant it to Bel Air. Then it becomes worth millions.
The fun part is when one of the idiots is transferred and moves to the real world. You can gouge them on home prices and they think it is so cheap they have to snap it up quick before they miss out.
Homes you can buy for $100K here sell for $500K where they were, so $250K is a deal too good to pass up.
Wait until the liberal morons go to sell it when they are transferred again.
Sub-thousand dollar rents are becoming a thing of the past.
And there is no equity from it.
I remember looking around different parts of the country, when I bought my very first house in 1993. Los Angeles was just coming out of a severe price crash, and average price was the same as the one I bought here in NC. Today, that same house in LA is over $500K. Mine hasn’t broken $200K. Given the overall cost of living differential, unemployment and the fact that average compensation is not sufficient to make up the difference, I’d say that residential real estate is still overinflated there. But, supply is artificially constrained by municipal, county and state regulations, not to mention environmental, so it could well be that demand is higher for a constrained supply. Supply is not constrained here, so appreciation tends to roughly track inflation overall.
I've done my homework...if I could sell my house for ~$200k here...I could get what I really want in another much nicer location and with some acreage to boot...
I'm not looking at this house so much as an investment but more like temporary lodging...if I end up on the plus side, I win...if not, oh well.
But I am not staying in this socialist cesspool for any longer than absolutely necessary.
I’ve had people on FR call me old fashioned, stuck in the mud, and out of touch when I point out that hipster foodies are paying entirely too much for hot dogs and hamburgers prepared on a food truck.
The $12 hamburgers just aren’t worth it.
I wouldn’t live in a liberal craphole city if they gave me free housing. Life is too short to live packed in like rats in a corn crib.
That's a steal!
/sarc
1) Student loan debt
2) Uncertain job prospects/not sure where they will be living long term
3) The recent (and, I would argue, ongoing) economic & housing collapse
Me either!
I live in the high desert...
But I want to retire to and live in the forested mountain regions of the US...Blue Ridge or Rockies...doesn’t matter as long as it’s not CA or some other socialist craphole...
Yes, what you said. They are not paying quadruple-digit rents and spending all of their take-home pay on fancy hot dogs. More than likely, they are living with their parents, trying to find a job of any kind.
How will a house make sense? The median price of a house in San Francisco is now several times what the projected LIFETIME earnings for a high school graduate was projected to be in 1962, the year I finished high school. Bear in mind that studies now say that a current bachelor degree is worth considerably LESS in real terms in the labor market than a high school diploma was worth in the sixties. Just to rent a home in San Francisco costs what used to be a high level executive salary in my youth.
For perspective let me add that I spent almost a year on the old Navy training base on Treasure Island in San Francisco bay in 1962 and 1963 going to electronics school. My pay then was less than one hundred dollars a MONTH, let that soak in, that is NOT a typo. On that pay I had many a good time in the city. Mixed drinks at Lefty’s were fifty cents each. A ride on the cable car was maybe a quarter, I am not sure it even cost that much. Two of my schoolmates who earned only slightly more than I did (because they had more time in grade) rented a two bedroom apartment in Frisco to have a place to party with girlfriends on the weekend. You could have lived a year in Frisco back then on what a couple of months rent would be now. At some point this absurd California real estate bubble has to burst, it is as certain as the sunrise. If drought conditions persist long term there WILL BE a massive exodus from the state. In that case houses will be available for free to snakes and scorpions.
And they have huge student loans, thanks to the government/educrat complex.
I’m in southern Michigan, right in the middle of a hardwood forest. My driveway is 1/4 mile long.
Can I enter the room? My driveway is only 400 feet!
They smoke it instead.
-PJ
My sympathies.j/k
My smartphone can do that, but I just read that I have to let people steal it from me if they try, otherwise they might get shamed at school for getting caught.
-PJ
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