Millennials Have No Hope Of Buying A Home In These 13 US Cities [See map]

Zero Hedge ^ | 06/08/2015 | Tyler Durden

[SeekAndFind]

In “This Is What Happens When A Millennial Tries To Get A Job,” we highlighted 1) high youth unemployment (U-6 at nearly 14%) and 2) the failure of America’s university system to prepare new entrants for the job market, on the way to painting a rather grim picture for America’s newly-minted college graduates. 

We’ve also been keen to emphasize the fact that the “strong” labor market is anything but, as wage growth is essentially non-existent and upside “surprises” benefit from the now ubiquitous “vanishing worker.” Given this, it’s no surprise that many of America’s best and brightest find themselves serving food and drinks after graduation even as they owe an average of $35,000 in student loans, debt which is curtailing homeownership — or at least delaying the process. 

Given the above, it’s not surprising that in many large US cities, buying a home is simply out of the question for most millennials, even assuming they have saved up 20% for a down payment. Bloomberg has more:

Millennials have been priced out of some of the biggest U.S. cities, with residential real estate prices rising even as wage growth remains elusive. 

 

The good news is that out of 50 metropolitan areas, 37 are actually affordable for the typical 18-34 year-old.

 

The bad news is that the areas that often most appeal to young adults are also the ones where homeownership is the most out of reach..

 

Bloomberg's calculations assume that millennials have already saved up the 20 percent they'd need for a down payment, which is a problem in itself. Families where the head of household was under 35 years old had a median net worth of $10,400 in 2013, according to the Federal Reserve's Survey of Consumer Finances.

 

Many millennials "don't have the money for a down payment or can't afford to buy where they want to buy," said Mark Vitner, senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina. "It's tougher to buy a home in the city."

 

That means millennials living in unaffordable markets will be forced to shell out money for ever-increasing rents, instead of building equity.

 

 

 

 

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We'll leave you with the following quote from Dan Smart, a 28-year old with a graduate degree who spoke to Bloomberg about what it's like for young professionals in New York:

"I'm making a good salary and I'm doing all these things that I'm supposed to be doing. But you're just not able to save enough to get to that number. Housing is so inflated."

[Texas Eagle]

Patience, young Millenials, patience. Those Libs can’t live forever. Plus, they’re not having children. In a few years, you’ll be able to pick up those properties for pennies on the dollar.

[Awgie]

Come to The TampaBay area. Moved here from Michigan 40 years ago. This is affordable paradise.

[Mouton]

Gee, let me look back a tad. I got out of college in 67...how many homes could I afford. The answer Alex is ZERO. After 3 years in the military and four years working, I was able to buy a small home, under the GI Bill. So then, I am so sorry the real estate industry has run its ship upon the shoals of inflated home prices. Alas, they can become rental agents now.

[Dagnabitt]

The California prices should ease once the state switches over to the Peso.

[Alex Murphy]

Patience, young Millenials, patience. Those Libs can’t live forever. Plus, they’re not having children. In a few years, you’ll be able to pick up those properties for pennies on the dollar.

Heard a man in church this weekend talk about his parents buying a house in Detroit in the 1950s, for $8,000. He went on to say that you can still buy a house in Detroit for $8,000 :D

[Responsibility2nd]

Well, there are plenty of affordable homes in Detroit. And now Baltimore.

So the problem is???

Seriously, unaffordable home prices will soon self correct. As prices go up, so do taxes, and then unemployment rates as jobs leave to more affordable locations.

[ScottinVA]

Take heart, Millennials. You can buy NOW in the lovely city of Chicago!

http://www.estately.com/real-estate/IL/Chicago/South_Side

[BunnySlippers]

Not gonna happen.

We have entered the “Manhattanization” of some cities. People are going to be forced out of living outside of their city of choice. Yes, living in the city is wildly desirable.

I own two homes in LA, not necessarily by choice. I had one home and decided i wanted something different. I moved in but never sold the first house I was living in.

I can’t be;eve how much it has appreciated! I’m putting it up for sale by the end of June ... but it is cheaper to buy than rent right now.

[SaxxonWoods]

Most young people shouldn’t buy homes today. The young are required to be too mobile in today’s America, and job security is low.

There’s nothing wrong with renting and it’s no impediment to building wealth.

Rent a place to live and invest in land or income property.

[King_Corey]

TEXAS still has good prices for homes, and jobs. Liberals need not apply or come here, your locations where like minded folks are around are the previously mentioned.... Chicago, and Detroit, where the elected officials are all DEMOCRATS. You live with your fellow Democrats in places that support more Democrats.

In TEXAS we have GUNS, MEN, and Christians...You don’t want to come here, it isn’t the place for anyone that doesn’t love Jesus and Beer, and Guns, and hot women. Pajama boys go to other places.

[freedumb2003]

If they think things are bad now, wait until this $15/hour minimum wage thing gets legs.

It is 100% certain to lower the cost of automation (McDonalds is already automating the ordering process in its stores, eliminating workers). We know there are machines that can create burgers. Once they and other similar low-skill jobs are replaced by robots, what happens.

Computer programming has been offshore for decades — it is a trade, not a career.

You need to be the one telling the robots what to do and the programmers what to write. That is the only value proposition available.

And millenials, celebrate! I plan on retiring the day after my 62nd birthday (a few years away). How you will replace 35 years of experience across the entire electronic landscape will be interesting.

[eyeamok]

What a bunch of greedy, snot nosed little pukes, who in the hell gives them the right to even think about Buying a Home, with the Student Debt they racked up thanks to TAXPAYERS like Me bankrolling their education, then when we add the $60 TRILLION in PUBLIC DEBT and UNFUNDED LIABILITIES, shouldn’t they be more worried about PAYING FOR OUR WANTS instead of Themselves?? Greedy, Selfish Punks./s

[Night Hides Not]

Shhhhhhhhhhhhh.....

[Aut Pax Aut Bellum]

TEXAS still has good prices for homes, and jobs. Liberals need not apply or come here, your locations where like minded folks are around are the previously mentioned.... Chicago, and Detroit, where the elected officials are all DEMOCRATS. You live with your fellow Democrats in places that support more Democrats. In TEXAS we have GUNS, MEN, and Christians...You don’t want to come here, it isn’t the place for anyone that doesn’t love Jesus and Beer, and Guns, and hot women. Pajama boys go to other places.
I though about moving there. But, it's really hot there in the summer, and I can barely speak spanish...

[Resolute Conservative]

Then how is it every house flipping show my wife watches the 28 year old millennials are buying houses in California and the NE for $650,000+ every show?

[Tax-chick]

For some reason, today I’m even more irritated than usual by the phrase “buy a home.” You don’t buy a home. You buy or rent a house or an apartment or a trailer ... and then you MAKE a home in it.

[Robert DeLong]

They may not be having children but, they support the importing of illegals by the thousands per day.

[Resolute Conservative]

The Mexicans here don’t speak it either ;/

[ForYourChildren]

"1) high youth unemployment (U-6 at nearly 14%)"