Likely Culprit: Exploding Student Debt “Economists believe younger Americans now are much more likely to rent for longer periods than did earlier generations ” due not only to the rising home prices and high credit standards but also the high student debt levels and elevated levels of underemployment.” —Wall Street Journal (5/23/2014) With the caveat that...Read More
Older, More Cautious First-Time Buyers “Low interest rates and relatively low prices can take the housing market only so far. For the market to truly heal, the economy must also heal.” –“Who Wants to Buy a House“; The New York Times (9/28/2013) My clients know that I regard the housing market as a dependent variable,...Read More
First-Time? Yes. Buyers? Not Exactly When is an uptick in new household formation BAD for home sales? When it’s the non-human kind. According to a wildlife contractor I’m working with now, Fall is when juvenile squirrels, mice, and raccoons look to establish their own “new households.” Unfortunately, their preferred real estate is often attics, crawl...Read More
Put-Upon (Grand)Parents According to the Census Bureau, what percentage of young adults aged 25 to 34 are currently living in their parents’ home? A. 6.5% B. 14.2% C. 22.3% D. 41.9% Answer: B Gauging from the headlines or even an informal poll of your friends, you’d certainly guess that that number was much higher. And...Read More
Where are the First-Time Home Buyers? Living With Their Parents, Unemployed, & in Debt Hey Chel you know it’s kinda funny Texas always seems so big But you know you’re in the largest state in the Union When you’re anchored down in Anchorage –Michelle Shocked; lyrics, “Anchored Down in Anchorage” Is there a connection between...Read More
Alternative Theory: Weighed Down by Debt One of the most overlooked factors driving the housing market is the rate of household formation. When people graduate from renting apartments to buying homes, get married and start families, etc., housing demand strengthens; when the number of households contract — as happens in recessions — housing demand weakens....Read More
