Skip to comments.Millennials Will Have A Hard Time Entering The Housing Market
Posted on 12/12/2012 12:17:16 PM PST by SeekAndFind
In this day and age, the 18- to 34-year-old crowd have lived up to their reputation as perpetual renters. Most blame the trend on the housing crisis, which led so many homeowners to downsize and stunted the home buying power of younger consumers.
But whatever trauma the Great Recession had on the minds of millennials, it hasn't stymied their hopes for owning a home of their own one day, a new study shows.
Real estate tracker Trulia found more than 90 pecent of millennial renters plan on buying a home in the next two years.
The question is whether they'll find what they're looking for. The housing inventory has been far from stellar lately, down 23 percent since last year and a whopping 43 percent since 2010, Trulia estimates.
"Many [Millennials] think todays low prices and low mortgage rates will last," says Jed Kolko, Trulia's Chief Economist. "They may be in for sticker shock if the cost of homeownership has returned to normal levels by the time theyre ready to buy.
Then there's the affordability factor to consider. People in their 30s saw their wealth diminished the most during the recession, a recent Pew study found, and the underemployment rate is estimated at more than 15 percent.
(Excerpt) Read more at businessinsider.com ...
The “18- to 34-year-old crowd” should NOT even BE in the “Housing””Market”. They should be in the APARTMENT Market. Dumbasses of the age are NOT OLD or Smart enough to buy a house YET!
In Obamanation, buying a house is a bad decision, financially.
Every time I see a story like this in the media I know they are just setting the stage for their guy Obama to step in and Save the Day.
Hahahaha. As if there will ever be a return to 'normal' anytime soon. And, the fact that 'normal' was not normal, but merely a artifical creation from Gov't intervention and largess.
The market will adjust and account for the Millenials.
However, baby boomers may not be happy with the adjustment they will have to make to sell their house to a Millenial.
There will be no economic recovery while democrats are in power.
As a matter of fact, there will be a collapse of the economy to the point that basic services will become scarce to non-existant.
Whenever 90% agree on anything, it's usually the wrong thing to do.
My daughter is in the 10%, has a master's degree, a "dream" job, an income more than twice the average Millennial Generation's, no debt, money in her bank and brokerage accounts, and she has not demonstrated any interest in doing anything but renting.
(I'm skeptical that with Millennial unemployment at 15%, 90% could possibly expect to buy a house.)
Housing is the least of their issues..... student loans in the 10s and 100s of thousands will doom them to 20+ years of mediocrity.
All this stuff was being debated and questioned back in the 70’s during “stagflation”, etc. Then along came Reagan.
“They should be in the APARTMENT Market. “
Seriously? I was in my second home and had 4 kids by the time I was 30....
I bought my first house at the age of 24 while Jimmah Carta was POTUS and the interest rates were nuts. It worked out very well for us.
OK. So like Obama should like totally get me a house. Like I totally voted for him. Just sayin’.
MY sons are 30 and 34 YOA. They both own their own homes. They both have jobs with large companies that still have pension plans and 401 plans..Guess they are not normal.The younger son is even doubling up the mortgage payments on his 15 yr. note.
They are SMART! They are the EXCEPTION! Most 18 to 35 Year Olds anymore can BARELY tie their own shoes much less ANYTHING Else!
First mandatory item for Millennials to budget for, the Affordable Care Act Bureaucracy, owning a house is a secondary luxury item most will never see. Car either. Thank a Democrat!
We have 4 offspring, who are 31 to 24 years old. All own homes (2 have mortgages, one is paid in full) except for the 24 year old.
3 of our 4 own homes, and the 24 yr old has LOTS of friends her age or within a couple years of her age, who also own homes. Perhaps it is more prevalent in the Midwest?
The problem is not so much they want to buy a house it is they want a much bigger house than they need or can afford with all the extras and upgrades like stainless steel, granite, huge walk-in closets, wood flooring, and huge bathrooms.
Just watch House Hunters and almost EVERY show they want these and usually want the houses in ready to move in condition and not want to do any work...sometimes not even simple stuff like painting or removing wall paper. Sadly it isn’t just the younger people.
One of my sons, a member here, got his first mortgage when he was 18 years old, no co-signer either, he has traded up twice since then and now lives in a beautiful home with acreage and it's almost paid for, he's 38 now.
It definitely happens.
And it seems like they are all 30-years-old and looking for a house in the $500k range. What's up with that?
Generally speaking, it's the children of liberals, in the 20-40 age group, who are living in their parent's basements.
(I said generally)
Children of conservatives have a much better chance of succeeding in life.
Screw them. It wasn’t easy for me, so why do they get a break? They can earn it as I did. Screw them again.
What is this “millenials” crape? Gen-x was worse, I suppose. But why di we have to have some stupid name for every generation? It’s annoying to people like me who fell between traditional dividing lines (technically I was a gen-xer because my parents were baby boomers, but they had me late and gen-xers were a little too old for me, though not a full generation older; on the other hand gen-yers, if that’s what they actually called whatever came between gen-x and the “millenials,” were a little to young) and so belonged to no official generation. More importantly, you could just as easily call them “the youth” or “young people.” We’ll know what that means.
Plenty are. We sure were when we were that age. We were 24 when we bought our first house.
It was amusing when we heard that one of the neighbors, in talking with another neighbor who we were friends with, commented that she hadn’t met us yet, but that she had seen the kids out working in the yard.
“It definitely happens.”
Absolutely.. you just have to want it and work for it.
Unfortunately it’s getting harder now a days.
Likewise, at 26 during Carter years, our interest rate was 14 percent. Re-fi'd lower when Reagan took over.
We Re-fi’d lower also after Reagan became POTUS and the rates went down.