I don’t think the majority of 20 somethings, even early 30-somethings have immediate plans to buy.
This demographic grew up with MTV, and will spend money on cars, clothes, and cell phones before saving for a down payment. Certainly not all, and probably none of us on these forums but I only know a small handful of people saving for a house.
It’s not necessarily that they don’t have the income, though many don’t, it’s more the mindset.
The idea of owning a home by the age of 30 in CA is fading IMO. People are pushing back marriage, kids, and home buying in favor of a comfortable lifestyle. They know homes are too expensive, so why try. Then there’s the issue of financial responsiblity. Those in this grouup that went to school are most likely in debt, and most if not all owe big time on credit cards.
All the more reason I think despite the quick correction we’re seeing, it will still drag on for a while.
I think there aren’t as many sideline sitters as the RE industry thinks. The few there are more than likely got out early-bubble to wait. First time buyers are few, and probably mid-30 dual income couples. You simply can’t afford an average CA home on an average mid-30’s single income.
