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Millennials Will Have A Hard Time Entering The Housing Market
Business Insider ^ | 12/12/2012 | Mandi Woodruff

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 today’s 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 they’re 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 ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: generationy; housing; millennials; obama; obamavoters; obamayouth

1 posted on 12/12/2012 12:17:24 PM PST by SeekAndFind
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To: SeekAndFind

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!


2 posted on 12/12/2012 12:21:55 PM PST by US Navy Vet (Go Packers! Go Rockies! Go Boston Bruins! See, I'm "Diverse"!)
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To: SeekAndFind

In Obamanation, buying a house is a bad decision, financially.


3 posted on 12/12/2012 12:21:55 PM PST by brownsfan (Behold, the power of government cheese.)
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To: SeekAndFind

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.


4 posted on 12/12/2012 12:25:51 PM PST by Buckeye McFrog
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To: SeekAndFind
'"Many [Millennials] think today’s 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 they’re ready to buy.” '

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.

Jobs--Jobs--Jobs

5 posted on 12/12/2012 12:27:34 PM PST by Theoria (Romney is a Pyrrhic victory.)
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To: US Navy Vet

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.


6 posted on 12/12/2012 12:27:43 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults.)
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To: Theoria

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.


7 posted on 12/12/2012 12:30:31 PM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: SeekAndFind
"Real estate tracker Trulia found more than 90 percent of millennial renters plan on buying a home in the next two years."

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.)

8 posted on 12/12/2012 12:40:20 PM PST by Sooth2222 ("Suppose you were an idiot. And suppose you were a member of congress. But I repeat myself." M.Twain)
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To: SeekAndFind

Housing is the least of their issues..... student loans in the 10s and 100s of thousands will doom them to 20+ years of mediocrity.


9 posted on 12/12/2012 12:42:56 PM PST by mike_9958
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To: SeekAndFind

All this stuff was being debated and questioned back in the 70’s during “stagflation”, etc. Then along came Reagan.


10 posted on 12/12/2012 12:45:00 PM PST by jeffc (The U.S. media are our enemy)
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To: US Navy Vet

“They should be in the APARTMENT Market. “

Seriously? I was in my second home and had 4 kids by the time I was 30....


11 posted on 12/12/2012 12:48:20 PM PST by mike_9958
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To: mike_9958

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.


12 posted on 12/12/2012 1:03:29 PM PST by RedMDer (Please support Toys for Tots this CHRISTmas season.)
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To: SeekAndFind

OK. So like Obama should like totally get me a house. Like I totally voted for him. Just sayin’.


13 posted on 12/12/2012 1:04:51 PM PST by Proud2BeRight
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To: US Navy Vet

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.


14 posted on 12/12/2012 1:05:34 PM PST by Renegade
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To: Renegade

They are SMART! They are the EXCEPTION! Most 18 to 35 Year Olds anymore can BARELY tie their own shoes much less ANYTHING Else!


15 posted on 12/12/2012 1:07:58 PM PST by US Navy Vet (Go Packers! Go Rockies! Go Boston Bruins! See, I'm "Diverse"!)
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To: SeekAndFind

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!


16 posted on 12/12/2012 1:10:08 PM PST by Son House (Romney Plan: Cap Spending At 20 Percent Of GDP.)
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To: SeekAndFind

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.


17 posted on 12/12/2012 1:16:55 PM PST by NEMDF
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To: US Navy Vet

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?


18 posted on 12/12/2012 1:20:15 PM PST by NEMDF
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To: SeekAndFind

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.


19 posted on 12/12/2012 3:12:27 PM PST by CARDINALRULES (Tough times never last -Tough people do. DK57 -- 6-22-02)
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To: mike_9958
Seriously? I was in my second home and had 4 kids by the time I was 30....

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.

20 posted on 12/12/2012 3:39:09 PM PST by Graybeard58 ("Civil rights” leader and MSNB-Hee Haw host Al Sharpton - Larry Elder)
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To: CARDINALRULES
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.

And it seems like they are all 30-years-old and looking for a house in the $500k range. What's up with that?

21 posted on 12/12/2012 3:43:27 PM PST by SVTCobra03 (You can never have enough friends, horsepower or ammunition.)
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To: NEMDF
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.

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.

22 posted on 12/12/2012 3:43:40 PM PST by Graybeard58 ("Civil rights” leader and MSNB-Hee Haw host Al Sharpton - Larry Elder)
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To: SeekAndFind

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.


23 posted on 12/12/2012 3:48:19 PM PST by Cyber Liberty (Obama considers the Third World morally superior to the United States.)
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To: SeekAndFind

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.


24 posted on 12/12/2012 3:49:14 PM PST by Tublecane
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To: US Navy Vet

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.


25 posted on 12/12/2012 3:50:16 PM PST by FreedomPoster (Islam delenda est)
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To: Graybeard58

“It definitely happens.”

Absolutely.. you just have to want it and work for it.

Unfortunately it’s getting harder now a days.


26 posted on 12/12/2012 4:34:51 PM PST by mike_9958
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To: RedMDer
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.

Likewise, at 26 during Carter years, our interest rate was 14 percent. Re-fi'd lower when Reagan took over.

27 posted on 12/12/2012 8:09:30 PM PST by roadcat
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To: roadcat

We Re-fi’d lower also after Reagan became POTUS and the rates went down.


28 posted on 12/12/2012 8:12:30 PM PST by RedMDer (Please support Toys for Tots this CHRISTmas season.)
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