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 ...
I thought about building closer to the road, but I like it better back here. You can’t even see my house from the road, mow the lawn naked if ya want.
My driveway is just long enough for my evil, gas guzzling pickup truck to fit in...hell, it can’t even fit in the garage.
Postage stamp is what it is...
Sounds like you’re living in my kind of location even if it’s not in the mountains...green and with trees...
Just wait when he water is off due to the drought.
I certainly don’t blame them, I spent nearly a year in the middle of San Francisco Bay fifty two years ago. The city had some attractions then but nothing to make me want to go back after I left the Navy. To live the way I live now anywhere in that area and I mean living as close as possible to EXACTLY the same way in all respects would require a very high six figure annual income and probably a seven figure annual income. That is assuming that you could find eight acres on a small river within a fifteen minute drive of a major medical center, shopping and a university and easily accessible to two interstate highways within ten minutes drive. I would bet that you could not find such a place and even if you could it would not be for sale and certainly not for less than several million dollars. Yes, there are other attractions there that do not exist where I live but nothing that I cannot easily live without. I only wish I could sell my property for what it would be priced at in that area.
You take your pleasure where you can get it. It’s sort of like when people used to spend all their money on the movies during the depression.
Down here in FL I am amazed at the poor rednecks who spend hundreds on fireworks during the 3th of July. Excuse me, thousands.
I have 40 acres and lease another 20 on the back side. I only mow about 5 acres. Hunt right out the window, fish and swim in the pond.
Sounds more like a cover story for people don’t want home owner ties so they can leave the state to me. You’ll notice it’s never the ever over reaching governments fault. Same government which was over-regulated and over-taxed every single aspect of life to death.
Taking out a mortgage with a small down-payment is taking out a bet that your income stream will be uninterrupted, and be increasing (to keep up with inflation) for the life of the loan.
For the last 20 years, incomes have been dropping, and in the last 7 years, jobs have been vanishing faster than new jobs are created.
But, a real estate neighbor of mine says 5% or less downstroke can get you in that dream house today!
I think the coming generations will not "seriously engage in marriage" for the most part. Why should they? Our culture has told young women that marriage is bad for them, has no societal value other than as a social contract between two people, and exists solely to put women in a position subservient to men. It has also told young men that they are unnecessary except as sperm donors and cash cows for their ex-wives, and if they do stick around to try to help raise the kids, they can expect to be treated as clueless idiots, potential abusers and rapists, and little else.
No doubt about it. Colleges and universities need to see a consumer revolt forcing them to change or close down and that includes Ivy League. The non essential {indoctrination} classes need to be ended and education focused once again on career training. IOW cut out the P.C. make some tenured idiot liberal agenda professors a career crap.
Envy is a sin.
Envy is a sin.
Envy is a sin.
Envy is a sin.
Envy is a sin.
Envy is a sin.
Envy is a sin.
Envy is a sin.
Envy is a sin.
Envy is a sin.
Not working, I envy you...;^)
Renting is very expensive in Los Angeles. And there are a shortage of units.
It’s cheaper to buy ... but that is not cheap at all.
Millennials etc don’t need cars for dates either, They have smartfones-iPhones instead
$9.00 for one with bermuda onions
Wow, in the same article, the fantasy of home sellers, and the reality of potential home buyers.
1) The fantasy: “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.”
2) The reality: “Many millennials, burdened like no other generation before them with student loans and making less money than their predecessors, are coming to grips with something important: they’re locked out of the American dream of homeownership for years to come.”
The bottom line: Hopelessly overpriced, but mediocre quality, homes that fewer and fewer people want, and potential buyers who are going to have to scrimp and save for years, *not* for a home down payment, but *just* to pay off their staggering debts.
For years, home sellers have been pretending that their just stupidly inflated market is going to “recover”, because they have been snorting too much unicorn powder. But eventually the bottom is going to drop out of the market, and speculative home sellers are going to lose their shirts.
Because the buyers will *still* not be there.
My first house looked much like the one on Green Acres except one side was log. It came with some land the family had purchased. Second home was a single wide my wife brought into our marriage. Third and final home is a double-wide 1200 sq ft sitting on same land as cabin was with a great view. It was paid off within about 8 years. Smartest move money wise I ever did. Four years into payments I was disabled.
I realize one thing now as I've gotten older if something happened to our home I could live in an even smaller and more simple dwelling. My Mom lives in about a 3600 sq ft two story home and is alone after dad passed. The home has high maintenance, has a wooden bridge on the driveway to maintain, and is far more house than she needs. But she can't afford to take a loss on it. She and dad paid it off back in the mid 1970's.
I have a 12'X12' storage building beside my house. If it were just myself I could live OK in it and be comfortable. The ones the article is aimed at? They have good sense if they know not to get suckered into Cali's over inflated housing market especially in these economic times.
Prices in Colorado have skyrocketed again.
Interesting side note: We were told that Gen/Y-Me were not interested in large homes or anything not approved by their liberal friends, however, every single new home community in Colorado seems to be 2,000 square feet or larger and $300k+.
“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.”
Not really. It was posted here on FR for years. We knew. The ignorant masses refused to believe it.
They have to pack two or three families into a home or rental unit your way! Driving through neighborhoods in LA and Silicon Valley in the mornings is a risk as there are too many vehicles in the driveways and roadways. I saw someone open their garage and it looked like a bunkbed factory!!
Also, foreign buyers scarf up expensive townhomes and condos and use them a month a year. Chinese have had lots of cash to do so.
Deport millions and millions of illegals and you have places to buy and live!!
Supply and demand - the market is telling you something. Houses are still overpriced. So are property taxes.
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