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?
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.
Stay away from the cans. Buyers hate cans.
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.
$8 for gourmet hot dogs from trendy food trucks??? Really??? This is what yuppies do??, for a freaking hot dog???
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.
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
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.
Millennials etc don’t need cars for dates either, They have smartfones-iPhones instead
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.