Posted on 04/13/2017 1:32:06 PM PDT by SeekAndFind
While 86 percent of Americans between the ages of 18 and 24 see owning a house as more affordable than renting —and 68 percent view their first house as a "stepping stone" to a dream home — just one in five think they can make a down payment, according to a new report released Wednesday by Bank of America. (The bank, it should be noted, made an unusually low $960 million in consumer mortgage banking income last year.)
Millennials, the generation that last year, for the first time in the modern era, became more likely to live with their parents than in any other housing situation, have homeownership rates of below 35 percent—nearly 10 percent lower than the age group’s rate in the early 2000s.
That may be a result of another factor defining the generation: mounting college debt. While fewer millennials in the Bank of America report—just under a third—put off home-buying because of debt, compared to 43 percent of Generation X respondents, the total aggregate student debt owed in the U.S. has nearly tripled over the past decade, to more than $1.4 trillion. Among Americans who have some education-related debt outstanding, the average student loan debt stood at more than $30,000.
The current student debt amount is rising at a rate of $2,665.2 per second. This number is estimated by calculating the per second change in student debt from Q1 2006 to Q4 2016 using debt data from the Federal Reserve (not seasonally adjusted).
And there’s a correlation between how much debt a student has and how likely he or she is to own a home, according to another recent report, released April 3 by the Federal Reserve Bank of New York.
(Excerpt) Read more at ibtimes.com ...
Stupid auto correct! Lol
Single wide.
Probably a good idea. (In a single wide mobile home, it's hard to hide that second wife for long.)
I working out-of-town, so the celebration will have to wait a little bit.
The truth is that whatever your economic level, you get used to it quickly and take it for granted. You’re rich? “Damn, my limo is late again.” You’re poor? “Damn, hamburger just went up 10 cents a pound”.
Oh I agree. My daughter and her husband live in Georgia so housing prices are reasonable. They have selected a nice community but not a rich one. They are getting bang for the buck. They chose to go to a state school to keep costs down. They both have full time jobs. He is an IT manager and she an ICU nurse.
They chose to stay in Heorhia rather than go to California where she grew up precisely because of cost of living. That and they both love Georgia. She has friends who left California in order to be able to buy a home.
There are good ones out there but not all are
Cost of living in the south is great, although starter home prices and rents are going up a lot. Which is good for me as I own a few starter homes as rentals.
In the area I am at then the answer is no. $500,000 for a fixer it upper. Whereas in my home state they have many $70,000 to $250,000 homes in move in condition by a lake, river, creek. The only drawback is I work in California and I am not moving anytime soon due to work.
Too funny.
We’ve come a long way since that single wide. Sitting on my 40 ft sailboat after launching the kayaks for my granddaughter and her friend. Life is good.
In my neck of the woods, folks can afford the home, but not the property taxes.
I live in Miami now. Good luck finding ANYTHING for under $300,000, much less anything that is in any way appealing. Tiny little 1000 sq ft homes here are going for $350K, $375K, even up to $600K in the right neighborhoods. We looked in Doral, where a new townhome (very nice) can be had for about $450K. In Homestead, a beautiful 4BR/2.5BA will run you $360K, very well equipped, but the commute to downtown is hell.
If we could afford the down payment in Doral, it would be a no-brainer, as the monthly cost with insurance, HOA, and taxes would be $600 or so less than we’re paying for a tiny condo downtown that we get no tax benefit from.
Buy a house based on the husband’s income only, and, don’t buy the biggest house on the street. Also don’t buy on a lot where they say, “they’ll never widen this road”. If you follow these three things, 99% of the time you’ll do fine.
Buy a house based on the husband’s income only, and, don’t buy the biggest house on the street. Also don’t buy on a lot where they say, “they’ll never widen this road”. If you follow these three things, 99% of the time you’ll do fine.
This new generation should really thank the socialist professors, 0bama, and their less than stellar education for their status. 0bamascam costs are skyrocketing so you can pay for 0bama’s welfare recipients, which is a very socialistic thing to do taught to you by your adoring professors while forsaking your education so you can play with crayons and play dough because Trump won the election, for you outsourced jobs. That about sums it up.
If rents which cost more than a home are affordable then a home is affordable.
Seems a real estate investor just wants people to rent.
Nice birthday gift for St.Ronnie!
I'm shocked it's even 1 in 5.
If you consider the starter home to cost -- let's round it out -- 100k, where does a 20-something get 20k for the 10% deposit? And never mind when the bank mulls it over for months and then says they want 20%.
Where is the milly going to get the credit rating to borrow from a bank, with student loans hanging over his head?
They're thinking in conventional terms. Banks, mortgages, credit.
They ought to try fsbo's, flippers and foreclosures.
Tell your dad you need 1k for bail. Let it sink in. Then when you can see his wallet, tell him you really want it for a house going cheap at a sheriff's sale. He will be so thrilled and relieved, additional funds may fly out of his pocket. Buy the house, clean it up a little, put it on craigslist and finance the buyer who has 2k or more deposit. Pay dad back. Lather rinse repeat. Do it enough times and the bank will come to you.
Never go into debt for more than you're worth in bail! :)
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