Posted on 07/28/2016 9:00:33 AM PDT by Rockitz
In hopes of promoting the narrative of a US housing recovery, one recurring thesis has been that as Millennials get older and start families, they will eventually leave their parents' basement and buy a house or shift from renting to owning. So far the facts have refused to corroborate this, and according to the latest "Housing Vacancies and Homeownership" report released on Thursday, the dream of owning a home just became even more distant. The reason: after staging a feeble rebound in late 2015, the US homeownership rate just tumbled from 63.5% to 62.9%, tied for the lowest print going back more than 50 years, to 1965.
As even the traditionally overoptimistic NAR has observed in recent months, as a result of soaring average home prices which have grown at a far faster pace than income or inflation, priced out first-time properties despite low mortgage rates amid a tight supply of listings. As reported yesterday, home prices buyers have been struggling to find affordable across the nation rose 5.2% in May from a year earlier per Case Shiller.
(Excerpt) Read more at zerohedge.com ...
More of Obamao’s “fundamental transformation” of America. One thing socialists really hate is private property (except their own, of course).
Wow, you mean having between 45 and 90 million able bodied people out of work might have some negative impacts on our society?
How can this be?????
Obama was going to fix all this inequality, .... home
prices are so low.
I am Shocked! A while back you could buy a home in
Detroit for around a Dollar.
This is certainly change alright, and it’s been over 7 and a half years in coming...............good job to all Obama voters. Haha!
YES WE CAN..................foreclose on your personal residence.
Why own a home, when if you lose your job, you have to spend a fortune getting rid of it to find new work out of state. It can be a huge liability.
You KNOW what’s coming next....
Pressure from politicians for banks to start lending again to homebuyers who can’t repay the loans.
It’s like predicting show in February.
Went over the cliff after Obama took over.
There was a tune when a large percentage of homes built were called “starter homes”. Expandable Capes and/or 5 or 5 room ranches. Bought by young couples who were well able to afford them as the family grew and it was time to move to a larger home.
Entire homes THEN sold for the price of USED cars today.
Further, are any SMALLER homes being built, at any price?
I do NOT believe the problem is a lack of desire, but a lack of ability.
You shovel money to those who, up front, can’t afford them, you end up with another bubble. SENSIBLE young people are watching their finances, and staying away.
“SENSIBLE young people are watching their finances, and staying away.”
Sensible people of all ages are watching finances and staying away.
“Further, are any SMALLER homes being built, at any price?”
=
Not that I can see—and you are so right about starter homes. They were a great way to get an affordable home.
.
but I thought I just heard last month housing starts were predicted to be at the highest level since 1985...
I remember hearing/seeing the story a few times, because I am a tradesman who has several friends who are bankers and we talk about this stuff regularly, and I almost fell out of my chair. I guess “predicted” as always was the disclaimer.
There are more houses being demo’d in my area than are going up, I guarantee you that.
1. Demographics as minorities become a larger and larger portion of the economy. The wealth gap between whites/asians and blacks/Hispanics is growing while the number of blacks and Hispanics is growing faster than non-Hispanic whites.
2. College students have amassed over $1 trillion of student debt. Repayment impacts the availability of money for discretionary items like houses.
3. Marriage and family formation are declining, especially among blacks and Hispanics, the segment of the population that is growing. There is less demand for family housing.
The longest lasting legacy of the Obama Administration will be the fact that financial numbers coming out of the Federal Government will have ZERO credibility going forward.
I recently downsized from 3,000 sq ft to an 1,100 3/2. I love it. Power bill under $100 most of the year. They’re hard to find. This was built in 1981. Only condos are being built this small here in Florida.
Eff’in Obola’s “Hope n Change” mission near accomplished...
RE: “But, but, but Obama says the economy is great....”
But ... but ... the liberals (and even Bush, but I repeat myself) said the Community Reinvestment Act would lead to record high levels of home ownership!
The data must be wrong!
As do all the financial wizards and pension funds managers.
Economy is FANTASTIC! Good time to INVEST!
The data he initially looked at, was wrong.
LOL
Small homes are outlawed in many areas by zoning. Even apartments in many areas have minimum square footages ... like 600 square feet for a studio apartment!
Many 3 bedroom homes were not much more than that, around 850 or 900 square feet in times past.
Zoning is what is keeping smaller houses or even affordable apartments from being built. If you lived in a smaller apartment that was affordable to build (and therefore affordable to rent) you could save up money for a down payment for a house. That’s what I did many moons ago. I think our first rental place was around 500 square feet.
Then we rented a 2 bedroom apartment that was around 800 square feet and we thought it was YUGE. We saved up to buy a 2BR house that was not much bigger than the 2BR apartment but it had a 1 car garage, which was a luxury at the time. It was on 1/4 acre so it felt even more spacious. This got us on the home ownership ladder and even if we had not moved “up” it was a nice place in a nice neighborhood ... and we could have added on easily.
In many areas you cannot build anything that small by zoning code. Minimum size for house in many areas is 1,500 square feet and usually other minimum requirements which push up the construction costs.
Habitat for Humanity cannot build in many communities because their houses, which are usually very well designed space-wise are around 1,200 square feet, are not allowed.
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