Will the boomers be exiting at or about the same time?
Millennials aren’t buying homes in the same numbers as previous and older generations, but it’s not because they don’t want to. The vast majority of millennials do indeed aim to buy someday, or would even like to now if they could. Unfortunately, the numbers don’t look good.
New data from Apartment List shows that, although 80 percent of millennials would like to purchase real estate, very few are in a good position to buy, largely because they have nothing saved. According to the report, “68 percent of millennials said they have saved less than $1,000 for a down payment. Almost half, or 44 percent, of millennials said they have not saved anything for a down payment.”
Depending on where they are looking to buy, given their current savings rate, millennials are 10 years or more away from home ownership. Young residents of pricey San Jose, Calif., will have to be exceptionally patient: Odds are they won’t be in a good position to buy an apartment there for “almost 24 years,” or “until the year 2041.”
Apartment List reports that millennials in San Francisco, San Diego, Los Angeles, Austin and other major metro areas each “face a wait of at least 19 years”.
Chalk it up to the Educational Complex foisted on an unsuspecting general public. Students graduating form high school are not prepared for college resulting in many needing much more than four years to graduate college. Coupled with high interest rates and sky-high tuition, they are saddled with loan obligations you and I didn’t have to contend with. All my student loans were put into money market accounts having returns high enough were I could pay tuition, books and board and still have money to “experience” college life. And those loans were not that much.
“Coupled with high interest rates and sky-high tuition, they are saddled with loan obligations you and I didn’t have to contend with.”
Government intervention into markets warps markets.
Another thing, we’ve increased the potential uni student population considerably in the last 50 years, yet built hardly any new Ivy League level universities. We need a disruptor.
PS Speaking of which… funniest Trump moment of the week: