What sort of fucking recovery is this? How can the market be at new, fresh, record highs, but home ownership sucking the dick off 1965 levels, a time and place that was both reprehensible and disgusting in American history?
For Q2, ownership dropped to 62.9%, matching levels not seen since 1965. When the economy was running hot and the housing boom was upon us, ownership was at 69.2%.
The reason for this fuckery?
Millennials.
Apparently, we are hamstrung by a generation of fucktards who don’t invest in stocks, buy homes, deodorant, or even have jobs. They just like to ‘feel the BERN’ and walk around all day in Donald Trump masks, texting on their Obama phones.
“While the millennial homeownership rate continues to decline, it’s important to note that the decrease could be just as likely due to new renter household formation as it is their ability to buy homes,” wrote Ralph McLaughlin, chief economist at Trulia. “Certainly low inventory and affordability isn’t helping their efforts to own, but moving out of their parents’ basement and into a rental unit is also a good sign for the housing market.”
“Broadly speaking, the falling homeownership rate is a sign that renting isn’t only for those just starting out or making a transition, but is becoming an increasingly viable longer-term option for many households,” noted Svenja Gudell, chief economist at Zillow. “It also means incomes are not yet rising quickly enough to broadly support new homeownership, and that inventory remains too tight to allow for meaningful access to affordable housing.”
The tight supply of homes for sale, combined with higher home prices, may have been behind the Federal Reserve’s silent warning in its latest statement Wednesday. It removed a line from its previous statement, which said, “The housing sector has continued to improve.”
What ever happened to the men who aspired to become monied property owners, builders of wealth and prosperity?
We’re fucked.
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It should be noted, Fly, the Fed funds rate was around 4% back then as opposed to ~0% now. So people were willing to pay a lot more interest back for those 1960s homeownership levels.
+1. Adds to the fuckery
They’ll probably come up with something like flash mob camping to replace home ownership.
Donated $25 to The Clinton Fund today. I’d rather give my money to charity than spend it on mortgage payments. I understand that most people aren’t so selfless though.
My God, of all places to donate.
Please say you didn’t. Idiot.
2 words: Student Loans
For some yes but there’s quite a few without loans that are living back at home. Unable to ever figure out how to network in college and so when they get a degree, it’s back home they go as if that 4 years was just an extended high school.
1 yep they are trapped between student loans and playing Pokeman
+1 they have delayed my purchase by at least 8 years. Should’ve been an electrician/welder/machinist with no debt. Households forming later too.
Not only are we “parents” FTK’ed but the kids who live at home are clueless as to why they are in the situation they are in and feverishly wish for a 3rd Obama term. Many of them don’t even understand how they arrived back home and are totally clueless how to manage money or ever get out of their childhood bedroom. Furthermore, at some point they give up and just blame society, Bush and the theme I hear is Capitalism for screwing them over.
Probably too late on posting this but: Go fuck yourself you have no idea what you’re talking about.
It’s not like homes are sitting around un-owned. What are 2nd home ownership rates these days? Higher than in the 60s I bet.
There’s more people than ever and less decent jobs, especially jobs outside of cities where homes might still be affordable.
I know… It’s so hard.
I am amazed that executives at some companies I work with are so focused on appealing to millenials. Not only as customers but as employees, believing they must bend to their will for some reason. One example, allowing them to work from home even though daily observation of these same individuals in actual places of business shows they barely work at all. If anything, the generation could benefit from a firmer hand not a lax one givign out free Obama phones.
Pussies. Just know, Le Fly will never bend to the caprices of millennials. I’d kill them first.
But Le Fly. Democrats are all over the television set saying how great things are in America…
400 K for a depressing piece of crap in a lower class neighborhood 40 miles from the city? Where does that go? After you leave you will be landlord of tenants in an area that has reverted to the mean, awaiting a market that brings the next fool.
You regularly espouse “the market” has become a casino with its inflated asset prices and wonder why millennials don’t invest in real estate? This ain’t 1978 when any asshole out of college could get a mortgage that represented less than 20% of their single earner income… and I’m certainly being hyperbolic.
But now housing is more “perfectly priced”… meaning sellers, via agents/banks, know exactly how much they can squeeze (50%+)from a potential buyer’s income. My guess is you didn’t sit at the dining room table of the first house you purchased eating Ramen noodles for dinner. How about you take median income levels for a major metropolitan area, subtract the 30 year mortgage payment for the average house price for that area… divide by 4, and tell me if you could live off that amount of cash for a week. Or multiply by two for a married couple… the answer may be a little better…
So yeah… I’ll rent at 20% of my post-tax income for the time being and squirrel away my cash (i still eat Ramen for dinner) for the impending market implosion that will leave housing prices at a more reasonable level.
You greedy-babyboomers outpriced your younger relatives with the rebubbling of housing. Not you muchacho. Rebubbled a bubble that’s quite a legacy.
I like your style. I too was a poor ramen eater not long ago.
The real difference between 1978 and now is that kids did not go to college to get a degree in “what they like to do”. College was a path to professionalism, that is as a means to get a profession… ie, doctor, lawyer, nurse, banker, accountant, engineer, etc. Pray tell me the people that are graduating with these types of degrees today have any trouble getting a mortgage and a fair wage. I didn’t think so.
The issue is that people these days view college as a way to broaden their knowledge, get a well-rounded education, and, more generally, for the “college experience”. The fuck outta here with that. We have too many liberal arts degree’d idiots that thought they were going to make $70k a year with their history or english degrees. Do you think graphic design is a legitimate major because you think its cool? Think again.
Muchacho80- Two paycheck per month family or person will use up one of the paychecks every month for the mortgage.
America has been completely sold out to foreigners and the rich. Someone owns all the housing. This is what we have become. A nation of plantation zombies. 25% own it all. I know. Part of that group. Rents are rocking higher.
It is very easy to comment on a situation when you aren’t living it. Im a millenial. I have my BSc in Engineering from Georgia Tech and I haven’t been able to get a job in my field for the last nine months, I have been applying almost daily to jobs….proly well over the 250 mark by now. No, I am not just sitting at home and getting hand outs….Im delivering pizza with my four year degree…..How am I suppose to pay a mortgage on that salary? Not only that if I do get a job in this current climate Id be very hesitant about purchasing a home because I may unemployed again in a few years.
You must be a complete social deviant if you can’t land a job with an engineering degree from Georgia Tech. Either that or your “engineering” degree is in something useless lake sanitation engineering or petroleum engineering.
Im not. See, thats the exact thinking of people not in the situation. Its easy to judge when youre not in it. Its in Civil.
And I also know of millenials that were or are in my situation with that O so wonderful engineering degree from Georgia Tech.
I own multiple homes and properties, but none of them are in the US.