will the Millenials ruin the housing market?

[patb]

http://www.forbes.com/sites/peterjreilly/2011/12/17/attitudes-of-young-americans-bode-ill-for-housing-recovery/

http://www.forbes.com/sites/peterjreilly/2011/12/17/attitudes-of-young-americans-bode-ill-for-housing-recovery/

” Echo Boomers value education, people and leisure more than other American generations. Of the Echo Boomers I spoke with, 13% were homeowners, yet less than a third reported interest in owning a home someday (with female Echo Boomers wanting homes more than male Echo Boomers). ”

This article speaks truth…

[Anonymous]

Lots of young people think that they will never own a house.

Then life happens.

[scaredyclassic]

I thought I’d live in a van.

[svelte]

Her young face was like that of an angel
Her long legs were tanned and brown
Better keep your eyes on the road, son
Better slow this vehicle down

Cause like a princess she was layin there
Moonlight dancin off her hair
She woke up and took me by the hand
We made love in my Chevy van
And that’s all right with me.

– Sammy Johns

[patientrenter]

The title is very telling. Apparently a lower demand for owner occupied housing – in other words, lower house prices – is considered “ruin” for the housing market.

In reality, the more affordable housing becomes, the better for the economy and for society at large. Would we cheer for higher oil prices? Or for higher bread prices? Housing is just a simple consumer good, and cheaper (for the same quality) is better.

[scaredyclassic]

Actually I would cheer for higher oil prices.

Not the right example.

I wouldn’t cheer for higher Olympic weight bar prices. Even if price is oil related

[tdelamater]

As the old adage says “you can’t take it with you.” The older generations (55+) have a majority of the wealth and I would expect to see a major shift in wealth distribution between the older generations to the younger generations in the next 10 years or so.

http://www.usatoday.com/news/nation/2007-05-20-cover-generation-wealth_N.htm

•Ages 55-59: Median net worth — the middle point for all households — rose 97% over 15 years to $249,700 in 2004, the most recent year for which data is available. Median income rose 52%.

•Ages 35-39: Median household net worth fell 28% to $48,940. Median income fell 10%

Now I know these stats are dated, and I would be very interested in the effect the housing bust has had since then, but this supports the gist of what I am trying to say.

There are a finite number of resources in the world. Valuing those resources is the function of markets, but like it or not those resources will be transfered from one generation to the next.

Yes, millinials are not planners or savers. But they’ll get theirs one way or another. Unfortuately that “another” might just be natural matriculation.

[(former)FormerSanDiegan]

As someone who was born in that lull between the boomers and echo boomers, this is great news. We can buy houses from downsizing Boomers to rent out to the echo boomers (for the rest of their lives, evidently). That’s the kind of major shift in wealth distribution I’m looking for.

[Coronita]

Millenials work?

That’s news to me. In between the ones that majored in something like underwater basket weaving, and the other ones that would rather attend OWS protests, the remaining ones with any shred of work ethics all want to be managers fresh out of school with no experience because they feel they are entitled to….

So I think wanting to buy a home is the last thing to worry about that generation

[an]

[quote=flu]Millenials work?

That’s news to me. In between the ones that majored in something like underwater basket weaving, and the other ones that would rather attend OWS protests, the remaining ones with any shred of work ethics all want to be managers fresh out of school with no experience because they feel they are entitled to….

So I think wanting to buy a home is the last thing to worry about that generation[/quote]
Talking like a true X’er looking down on us Millenials. I guess the circle I’m running with are the minority. Us Millenials are holding titles anywhere between Sr. S/W or H/W Engineer and Engineering manager, optometrist, doctor, pharmacist, etc. Most of us actually own our house and some are looking for rentals.

I totally agree with FSD though. If this article is true, it would be great for people who are looking for rentals right now.

[Coronita]

[quote=AN][quote=flu]Millenials work?

That’s news to me. In between the ones that majored in something like underwater basket weaving, and the other ones that would rather attend OWS protests, the remaining ones with any shred of work ethics all want to be managers fresh out of school with no experience because they feel they are entitled to….

So I think wanting to buy a home is the last thing to worry about that generation[/quote]
Talking like a true X’er looking down on us Millenials. I guess the circle I’m running with are the minority. Us Millenials are holding titles anywhere between Sr. S/W or H/W Engineer and Engineering manager, optometrist, doctor, pharmacist, etc. Most of us actually own our house and some are looking for rentals.

I totally agree with FSD though. If this article is true, it would be great for people who are looking for rentals right now.[/quote]

I didn’t say generation X’ers were much better. In a lot of ways, they’re worse.

[an]

[quote=flu]I didn’t say generation X’ers were much better. In a lot of ways, they’re worse.[/quote]
My bad. Didn’t know you were that cynical. I personally don’t think they’re that bad.

[poorgradstudent]

A lot of Millenials are working crappy jobs below their education level (if employed at all) and are saddled with huge college debts. Many of them have *never* enjoyed a good economy in their working lives.

Attitudes will improve as the economy does. Millenials are going to buy a lot later than their parents did, but they will buy eventually.

[flyer]

From my perspective, I agree that anything that increases the demand for rentals is great. We were able to retire early because of our rentals.

[(former)FormerSanDiegan]

It’s funny how the boomers were lazy/freeloader/protesters in the late 60’s/ early 70’s, then the entitled greedy “me” generation in the 80’s, and are now the hardworking wise generation.

Seems to me that the Gen-X’ers and the Gen-Y “millenials” are on similar arcs.

[Author]

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