Posted on 08/26/2014 11:37:43 AM PDT by Lorianne
Generation X homeowners are far more likely to be underwater on their mortgage than millennial and Baby Boomer homeowners, a generational block that could limit the market for years, according to the second quarter Zillow® Negative Equity Reporti. The overall national negative equity rate fell to 17 percent in the second quarter, with more than 8.7 million homeowners with a mortgage owing more than their home was worth.
Approximately 42.6 percent of Generation X homeowners (those aged from 35 to 49) are underwater on their mortgage, compared to 15.3 percent of millennial homeowners (20-34 years old) and 31.1 percent of Baby Boomers (50-64 years old). Because it is very difficult for an underwater homeowner to list their home for sale, the wide disparities among generations stand to have ripple effects throughout the housing market. Baby Boomers may not be able to find move-up buyers for their homes as Gen X remains stuck, and millennials can't move into the more affordable starter homes currently occupied by Gen X.
(Excerpt) Read more at seekingalpha.com ...
My house payment is less than your $600 dollar truck payment. Add taxes and insurance and I am still $400 below what it would cost to rent the same house here.
I don’t know how these people around here can afford to pay $1200 to rent a house. And that is for a small 12-1500 square foot house. Not top of the line houses.
And that $1200 would take the average worker here over 100 hours to earn before taxes.
” I don’t know why they go into debt for college.”
Then they realize that the degree in Visual Arts or Sociology or Female Studies doesn’t go far towards paying off that debt.
When my friend’s son was thinking about a major, he open the Employment pages in the metro paper and said “Pick something.”
I resemble that statement. My house is a big anchor that I’d love to get rid of. BUT stupidly I put a large down payment and have been paying my bills. When the market crashed the entire neighborhood was wiped out. If only I had a crystal ball I would have rented after I sold my first house.
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