Economy

Crewleader

(17,005 posts) Fri Oct 31, 2014, 11:28 PM Oct 2014

Dr. Housing Bubble 10/31/14

Blame the fall in homeownership on Generation X: Why did the homeownership rate fall so dramatically for those 35 to 44?

We’ve all heard about the broke Millennials living at home with mom and dad unable to move out into a very expensive rental. For years, we’ve been told that somehow this young group of people would represent some pent up demand to buy homes. This demand never materialized. Instead, you have tight inventory in certain markets being fought over by investors and those willing to pay current prices while stretching their budgets. Yet volume remains incredibly pathetic. The homeownership rate has fallen dramatically and some point the blame to the Millennials. But as it turns out, the big drop has come from those 35 to 44. Generation X overall has been a massive drag on the housing market. The young are simply not buying homes like they once did and many are opting into the rental market. So how big of a drag is Generation X on the housing market?

Generation X and housing

Since the housing market imploded, the homeownership rate in this country has been on a steady decline. Even with the blockbuster year in 2013 in terms of prices, the homeownership rate continues to remain weak. It is probably worth noting that some groups pulled back harder than others. Let us look at those 35 to 44:

http://www.doctorhousingbubble.com/blame-fall-in-homeownership-generation-x/

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Dr. Housing Bubble 10/31/14 (Original Post) Crewleader Oct 2014 OP

Another little thing we have seen Wellstone ruled Oct 2014 #1

Yes. We have several relatives and friends going the RV route. Also, even Nay Nov 2014 #3

They're not buying because their wages suck and they know Warpy Nov 2014 #2

Wellstone ruled

(34,661 posts)

1. Another little thing we have seen

Reply to Crewleader (Original post)

Fri Oct 31, 2014, 11:51 PM

Oct 2014

is the number of 65 and older people who have lost their homes or sold them for what ever they could get to pay medical bills. Many have gone to R/V living just to make ends meet. When you can get a R/V spot with full hook ups for 6 bills month,cheaper than owning a home. Tons if people out there with out housing because of dislocation and job loss. If you don't have a 700+credit score and can't do a 20%down you are pretty much screwed. Plus.you better be able to show proof you can pay ever mortgage payment for the length of the loan.

Nay

(12,051 posts)

3. Yes. We have several relatives and friends going the RV route. Also, even

Reply to Wellstone ruled (Reply #1)

Sat Nov 1, 2014, 12:49 PM

Nov 2014

if you have gold-plated credit numbers, it's still hard to get a house loan! Mr Nay and I wanted to buy a fixer-upper in the neighborhood for Sonny Nay and family to live in; we have amazing credit scores, no debt for anything except the final 5 years of our own mortgage, high incomes, and we had to pay off our own house (we had the cash to pay it off!) before we could get a loan!

I have no idea how anyone 40 or under is even qualifying for a loan on a shack.

Warpy

(111,282 posts)

2. They're not buying because their wages suck and they know

Reply to Crewleader (Original post)

Sat Nov 1, 2014, 12:22 AM

Nov 2014

they're going to have to move frequently to keep up with jobs.

Going to work in the factory, getting a good wage, and saving enough for a down payment by the early 30s and paying the place off at retirement just doesn't happen any more.

You can't look at any part of this failing economy without considering what WAGES have done over the past 40 years.

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