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 ...
The real estate industry will crank up the lobbying for Student Loan Forgiveness to 11. Bank on it.
Besides the college loan debt, another big difference today is that so many young people expect to be able to buy a 4 bedroom house, 2500 sq feet, less than 15 years old, nice suburb area, with all new flooring, new appliances, granite countertops, etc.
In our area, there are plenty of 2 bedroom bungalows available for 1/3 the price, which more closely resemble the “starter” homes of a generation or two ago.
It’s not very affordable when your government mandated health insurance premium is more than your mortgage payment might be.
Become familiar with housing prices in Trump Country.
Thanks to the Federal Reserve, their soviet-style central planning, their 8 years of zero interest rates, and their $4.7 Trilion balance sheet
there’s a lot of money chasing certain sectors of assets
Forget it. My wife’s Beemer won’t even fit in the garage of that 60 year-old bungalow, let alone my F-250. /s
Yep, and I forgot the 2 sinks in Master EnSuite and walk-in closets with built-in shoe racks... gotta have ‘em.
Our first home was a mobile home. All we could afford. 5 years later moved up to a small 1200 square foot house. I hated that house but stayed in it 10 years til we could finally afford what I wanted. Bought an older 2000 sq ft Spanish style on 1/3 acre with a pool and spa. Still in it even though we could afford to move up long ago. It’s paid for now.
My daughter and her husband are having that house built for them....though it’s actually 3200sq ft. But then they have a single car payment with six months left on it. Went to while working and paid off student loans within five yrsbout of college. Saved up for a down and are so excited they can hardly stand it. A great accomplishment for two very focused hard working millenials
Yep and the washer and dryer that each cost more than my first NEW car.
These house-hunting shows on HGTV must drive you nuts then.
Some young couple looking for a house in some ridiculously expensive place like Vancouver or Honolulu are shown 3 homes. Then the obnoxiously snotty 30-ish wife nitpicks the hell out of all three of them. “I didn’t like the shape of the door handles in that second one, and the bathroom tile in the third is just totally the wrong shade of salmon...”
Hello......you’re 30 yrs. old and HAVE ENOUGH MONEY TO BUY A HOUSE IN HONOLULU! Why not act like you’re happy and grateful for a change?
I think that is great, that they have worked hard and earned what is needed to achieve their dream.
I guess my comments are more aimed at the snowflake-types, who act like, if only we would forgive their loans, they could buy a house...instead of working 2 jobs or whatever it takes to get their loans paid off - or - BETTER YET - dumb people should not take huge student loans to get degrees that will never pay off in career/income rewards.
There is that liberal mindset that thinks everyone should have equal everything, and fails to consider the varying levels of effort, risk, and sacrifice involved.
Our first house was 1009 square feet. Could plug in the vacuum cleaner once, and clean the whole house.
Nope they don’t bother me at all. Have never watched them, not once.
Paid off our second house today (On StRonnie’s birthday!): 3100 sq feet, four bedroom, three bath.
WOO HOO Congratulations! What a great feeling, right?
Are you going to celebrate?
Obama’s fake out to gen X - yea, go to college, we’ll make federal loans so cheap you all can afford it - not that you’ll graduate, nor even that you’ll get a job that can pay the loan back, but then you’ll be right where I want you - begging for a socialist government takeover of everything.
Our mobile home was a single wife. 14 x 60 2 bedroom 1 bath.
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