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Millennials Have No Hope Of Buying A Home In These 13 US Cities
In “This Is What Happens When A Millennial Tries To Get A Job,” we highlighted 1) high youth unemployment (U-6 at nearly 14%) and 2) the failure of America’s university system to prepare new entrants for the job market, on the way to painting a rather grim picture for America’s newly-minted college graduates.
We’ve also been keen to emphasize the fact that the “strong” labor market is anything but, as wage growth is essentially non-existent and upside “surprises” benefit from the now ubiquitous “vanishing worker.” Given this, it’s no surprise that many of America’s best and brightest find themselves serving food and drinks after graduation even as they owe an average of $35,000 in student loans, debt which is curtailing homeownership — or at least delaying the process.
Given the above, it’s not surprising that in many large US cities, buying a home is simply out of the question for most millennials, even assuming they have saved up 20% for a down payment. Bloomberg has more:
Millennials have been priced out of some of the biggest U.S. cities, with residential real estate prices rising even as wage growth remains elusive.
The good news is that out of 50 metropolitan areas, 37 are actually affordable for the typical 18-34 year-old.
The bad news is that the areas that often most appeal to young adults are also the ones where homeownership is the most out of reach..
Bloomberg's calculations assume that millennials have already saved up the 20 percent they'd need for a down payment, which is a problem in itself. Families where the head of household was under 35 years old had a median net worth of $10,400 in 2013, according to the Federal Reserve's Survey of Consumer Finances.
Many millennials "don't have the money for a down payment or can't afford to buy where they want to buy," said Mark Vitner, senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina. "It's tougher to buy a home in the city."
That means millennials living in unaffordable markets will be forced to shell out money for ever-increasing rents, instead of building equity.
* * *
We'll leave you with the following quote from Dan Smart, a 28-year old with a graduate degree who spoke to Bloomberg about what it's like for young professionals in New York:
"I'm making a good salary and I'm doing all these things that I'm supposed to be doing. But you're just not able to save enough to get to that number. Housing is so inflated."
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What is Mr. Smart's graduate degree in? That seems like a meaningful detail.
Rentier studies.
Let's see where the prices of homes go if the Banks were forced to put all their underwater homes on the market
work harder you millenial putzes
Who would want to live in a city? If you plan on raising a family free from the crime and negative social influences characteristic of the big liberal cities, you best move out. I really dislike the forver young 30 year olds who just have to be near the action and entertainment of the city while trying to raise a family.
I hear Baltimore is nice. And housing is more affordable than ever there.
the house hasn't changed, the fed has devalued the money for that same house.
the house price has not inflated the currency has become more worthless,
the house is not the problem the currency is.
Throw in the Job Situation, then you have most states
Layoff List: http://www.dailyjobcuts.com
-
Face it ... American's are getting priced out of everything by the government.
When all the new Disney H1B visa-holders finally get their training from the workers here (who are getting fired), and they start getting paid a quarter of what the displaced workers USED to get, I'd be looking at riots in Orlando and Anaheim (because it will take 30 of them to rent a one-bedroom apartment). I hear that Miley Cyrus is in the process of training a dot-headed short fat brown girl in the finer arts of 'twerking'...
SAY, is that 'failure to Obamacare' fine going up AGAIN?
'Millennials Have No Hope Of buying A Home In These 13 US Cities' can be shortened considerably. The headline should ONLY include the first four words.
@Four chan
It's not "just" the devaluing of the currency. Housing Bubble 2.0 has outpaced the devaluation as that easy money has gone dis proportionally to specuvestor activity in the Major Metro areas. However since in these areas prices are so disconnected from fundamentals (20% down leaves you several hundred to $1000 OVER rental parity) it is no safe haven for FEDbucks. The correction has already started in my area (Suburbs of LA and the Inland Empire)
As for the young professional quoted above, perhaps the clogan should be:
Housing Bubble 2.0. It's the reason you can't have beef for dinner...
the "expensive" areas reflect the true devaluation of the currency,
the already destroyed areas like detroit are suppressed with fear, they do not
show the effect of the feds criminal debasement...yet.
True, bit this can never be a linear path in our mixed economy. Being that we aren't fully communist and subject to market forces, IE wages are still set mostly on the open market, you get severe misallocations like the 2008 and current Housing Bubbles. So it's all good until there comes a point where your "asset" inevitably becomes marked to market. So instead of a linear trajectory to inevitable inplosion, we get wild swings with ever disparate peaks and valleys. Real Estate in my home area of Southern California is a perfect example. 3 major corrections since Nixon and a few other small spikes and troughs.
It's how they've kept power for so long. Unlike the Soviets they allow just enough freedom of the market place to prevent the total collapse that the manipulation of currency and credit ultimately brings to an economy. We'll see how much longer they can play the game...
The Fed and CBs are still worried sick about the economy and that's why rates will not rise in my lifetime. The Fed [and most other CBs] forcing people out of their savings into riksy sectors -- like overpriced houses -- with their near-zero yields on savings accounts and other threats such as 'bail-ins.'
It doesn't look good for the Frugal Hard-Working Private Sector Crowd.
They have to raise rates so they can lower them later. FED has almost zero credibility left. If they fail to raise by early next year at the latest the bond market will start the correction for them. Any further QE could really destroy the dollar, or at least consumers ability to spend on anything. If they trigger that, yours and my lifetimes may be shorter than we both realize.
Yeah, serously my wife just bought skirt steak from Stop and Shop, 13.99 a pound, I almost puked. Did all the cattle die? I hear that ranchers can't make money on beef right now, how is that possible with those prices? Someone or thing is making a bucket load of cash on beef right now. If its not the farmers than who?
Ranchers are too busy fighting gummint over nuked turtles in the Nevada Desert?
About three years ago, there was a large culling of cattle due to the drought in the midwest, and the insane cost of feed.
http://www.reuters.com/article/2012/07/13/us-usa-drought-cattle-idUSBRE8...
A friend of mine was able to pick up live calves for two dollars each then, and has her own small herd of about twenty head now.
skirt steak from Stop and Shop, 13.99 a pound,
maybe you need to find another store...
try this: $5.99 lb. USDA Choice Beef New York Steaks
http://albertsons.mywebgrocer.com/Circular/San-Diego-14th-and-Market/03E...
MMMM....Mystery Meat.
RIPS
If you're paying that much just pick up the filet mignon from Costco at 16.99 per pound. The stuff at the supermarkets is absolute overpriced garbage. At least you'll be eating some decent beef.
Costco Beef Recall:
http://www.huffingtonpost.ca/2013/10/17/costo-beef-recall-kirkland_n_411...
TWO WORDS:
BUNDY RANCH.
From Farmer Dave
"Question: How much money does a cow cost? Lisa - Buchanan SchoolAnswer: One (commercial) pregnant cow in Alberta today would cost about $800.00. Cattle prices can vary significantly from year to year depending on market conditions. A purebred cow can cost significantly more, as these animals are used to improve your herd."
If you have some real estate ( or if you're near a public park), you might be able to raise a few cows and sell them off for a profit at that Px/Lb.
Community Ranches (and Dairies). That's the ticket... You'll just have to explain to any children (including your own) as to why the Cows suddenly "disappear" once in awhile...
If the Fed and banksters' "Credit Dollar" (bank debt) was properly valued in 'Legal Tender Dollars', the "Credit Dollar" would be worth about $0.04.
This means that a house priced at $400,000 in 'credit dollars' would sell for $16,000 in Legal Tender Cash.
Apply that standard economy wide and things could get interesting really fast, like the realization that there is a very tiny supply of 'actual money' (legal tender) in the economy.
There is a difference between Money and Credit.
Don't forget to click on the "Home" button at the end.....
excellent post
So If I am paid with a check (promise to pay) from my employer and I deposit the check so that my account is credited with Promises to pay me in my bank account. How have I ever gotten any income to be taxed on by the IRS, the IRS says themselves that Credit is not taxable as income?
How have I ever gotten any income to be taxed on by the IRS...
Because the say it's income and they have the authority to imprison you if you disagree :-)
The Supreme Court, in several decisions in the Teens, Twenties, and Thirties, along with IRS Code ITSELF, state emphatically that trading labor for time is a BARTER agreement, and therefore is not 'PROFIT' (the IRS defines 'PROFIT' as 'INCOME').
If you make a 'PROFIT' from someone else's LABOR in your BARTER AGREEMENT, you are liable for the TAX. If you SELL SOMETHING which yields a CAPITAL GAIN ('profit'), you are liable for a TAX. If you WORK and trade TIME for MONEY in BARTER, you are NOT liable for a 'TAX'.
FILING a 'TAX RETURN' is VOLUNTARY.
AHH...
AND THAT'S WHY they want to outlaw 'cash transactions'...
If you are EMPLOYED, and your EMPLOYER chooses to pay you in CASH, you are NOT LIABLE, and therefore UNTAXABLE...
And the AUTHORITY to imprison the one who states the TRUTH is NOT RECOGNIZED here.
San Jose - nailed it. Millennial techies around here make $60K - $100K. Perhaps 100K+ if you're working for bigCorp, but small business workers who are not in the website and phone/tablet application development pamperstry (VC-pampered industry) certainly do not. Yep - a millennial would need to make twice its current salary here just to be able to qualify for a loan on the shittiest house in East San Jose. Doesn't help that foreign Chinese money, local Chinese and Indians, and a bubblicious mentality have created $1M shacks...
Dionne Warwick: 'Do You Know The Way To San Jose?':
https://www.youtube.com/watch?v=jqWt49o7R-k
It's all gone, now.
FUCKING GONE.
The world moves on, I suppose, 'Skateboarder'. DEVOLUTION is the NEW REALITY.
Say, is that supposed to be a pic of Gandalf in your avatar?
Interns at places like Facebook, Google and Twitter make $70k+, live in company-provided housing near the campus, get free meals anytime they want on campus, can borrow bikes for free, etc.
For example, Facebook comes with coffee shops, a hair salon/barber shop, various cafeterias, restaurants and shops, car repair and detailing, bike repair shop, free vending machines that dispense batteries and various computer-related items like USB adapters, keyboards, and headphones. Facebook has two main eateries to feed its staff — Epic Cafe and Cafe 18 — which can seat hundreds of the young, T-shirt-clad, smart and pretty people, most of whom are under 30. All food is free, day and night. Facebook snagged Google's executive chef, Josef Desimone, to run the kitchens. Desimone's kitchens serve up 7,200 meals a day to the 2,400 Menlo Park employees. "We make all our own bread on campus, except for bagels," he says. There are shiny communal bicycles available for rides along the adjacent wetlands trails, or anywhere else you desire. Other perks include yoga, massages, on-site doctor's office and dentist office, on-site gym, arcade games and XBox, Playstation and Nintendo gaming stations, on-site daycare and free rental cars available for running errands. Free wash-and-fold laundry services, hair cuts and dry cleaning (which is located onsite) are available along with concierge services. Facebook pays 100% of medical, dental and vision benefits. Plus, it gives $4,000 in "baby cash" for those having children and reimbursement for day care and adoption fees. The work spaces are all open with small desks that look like you kid's homework station, and lots of lounge chairs and sofas. No offices or cubicles. Facebook's mini-downtown-Palo-Alto-replica-campus has walls. Unlike the Googleplex, curious people can’t wander onto campus as they please. The walls separate Facebook from the Baylands, the commuters stuck in traffic over the Dumbarton Bridge and from East Palo Alto and East Menlo Park, two of the Peninsula's most violent areas. The graffiti artist, who painted the interior, asked for his payment in the form of stock options. This happened well before the IPO. So now those options are worth $200 million.
After it's IPO, Facebook announced it will be spending several billion dollars building a new 2,800 employee "Hacker" campus and hired the most expensive architect in the world, Frank Gehry, to design it. It recently received approval from the City, will be built across the street from the existing headquarters and will include a connecting tunnel under the road. It is basically one large, 435,000 sq ft open space (the largest in the world) and will feature a green roof, including trees, a long walking trail, barbeque areas and restaurants. The entire space will be built on pillars, above a massive ground-level parking lot. I am not sure I would want to be in this building during a large earthquake.
And I am sure you have heard about the $5 billion, 2.8 billion sq. ft., 4-story Apple Spaceship (which Wall Street has nicknamed the "Death Star") in Cupertino which is under construction now and will house up to 12,000 employees. It will use 40-foot wide curved glass windows all the way around the building. Most of the parking will be underground and 80% of the land will be landscaped like a park with 6,000 trees. It will also include a 3,000-seat cafe. They will have their own electric power plant ("energy center") and will use the grid as the backup.
If they included small cities in their article, Cupertino and Palo Alto would easily outstrip San Jose.
BTW, should a U.S. employee pass away while under the employ of Google, their surviving spouse or domestic partner will receive a check for 50% of their salary every year for the next decade. Even more surprising, a Google spokesperson confirms that there’s “no tenure requirement.” In addition to the 10-year pay package, surviving spouses will see all stocks vested immediately and any children will receive a $1,000 monthly payment from the company until they reach the age of 19 (or 23 if the child is a full-time student). Google also has many of the same perks at Facebook, including free meals.
Welcome to Silicon Valley!!!
Check out some photos:
http://www.forbes.com/sites/meghancasserly/2012/08/08/heres-what-happens-to-google-employees-when-they-die/
Facebook Headquarters Photos: http://www.businessinsider.com/photo-tour-of-facebook-headquarters-2014-4?op=1
Photos of Hacker Campus: http://www.dailymail.co.uk/sciencetech/article-2584738/Now-THATS-open-plan-office-New-pictures-reveal-Facebooks-hacker-campus-house-10-000-workers-ONE-room.html Apple Spaceship: http://www.businessweek.com/articles/2014-09-02/construction-on-apples-new-headquarters-revealed-by-camera-drone http://www.businessweek.com/articles/2014-09-02/construction-on-apples-new-headquarters-revealed-by-camera-drone Video of Steve Job's presentation to Cupertino City Council GooglePlex Headquarters: http://www.vanityfair.com/online/daily/2013/02/exclusive-preview-googleplex Amazon BioDomes: http://archpaper.com/news/articles.asp?id=6879#.VCthMVdFs8s http://www.theverge.com/2013/10/24/5023454/amazon-giant-biodome-design-board-approval IRS-No More Free meals: http://www.bizjournals.com/sanjose/news/2014/09/02/free-meals-at-tech-companies-will-be-taxed-if-the.htmlI can't breathe, motheffucker
Don't TAZE me, bro.
I logged in to say the same. America's cities are nightmarish hellholes full of gun wielding "vibrants" along with illiterate sexual predators from all over Mexico and Central America.
Anyone trying to buy a home in an American city is a moron. Anyone trying to raise white children in an American city and send their kids to public school is an abusive parent.
"Anyone trying to raise white children in an American city and send their kids to public school is an abusive parent."
But just think of all the "cultural enrichment" they will get.
Just wait until California completes its tranformation into a third world hellhole. Real Estate there is going to drop like a fucking rock...
Nah, they'll just make the third worlders move father inland... to Nevada and such.
Except for exclusive coastal communities, most of California is already a third world shithole and so is Nevada and such.
'Red Hot Chili Peppers': "Californication":
https://www.youtube.com/watch?v=JQYJRw4R4-Q
MISSION: IMPOSSIBLE. ACCOMPLISHED!
https://www.youtube.com/watch?v=zk3A6WgifJo
NO, the REAL ESTATE will continue to CLIMB and CLIMB, like the closed signs at the end of a dead-end road that leads to the precipice of a 10,000 foot DROP.
HINT: If you want to sell your cock, pussy, or asshole for a few bucks, go to Chatsworth (before the white kike movie producers of 'world-class porn' finally leave for their 'island in the sun' over in Haifa or Tel Aviv).
This type of program will help turn us towards a more perfect balance!
http://eagnews.org/update-more-school-districts-report-chaos-after-white...
+++
'Restorative justice'...
The 'zeitgeist' of our time and the cultural norm since even before our Lord & Savior was elected (Thank you Jamie Fox) And it's all gonna end in a freakin' maelstrom like no one's ever seen. After this cat leaves office, there won't be another black elected to the presidency for at least a generation - and that's being generous.
Barbara Lerner Spectre has you on her list now...
hmm San Jose is one of the safest cities in the US so not sure WTF are you taking about..
You're correct, right up to the point where it gets overrun by less entitled and enlightened denizens of the neighbouring communities. The bay area is a big place and San Hosey would need a 50 foot wall to keep out the free shit zombies...
;-D
"hmm San Jose is one of the safest cities in the US so not sure WTF are you taking about.."
Not anymore...
San Jose Mercury Headline: San Jose crime rate surpasses U.S. average, arrests plummet
http://www.mercurynews.com/pensions/ci_24737175/san-jose-crime-rate-surp...
The criminals have figured out it is better to rob the nicer neighborhoods so the crime is migrating west in Silicon Valley. While still safer than most large cities, it has declines significantly in the past 10 years.
@Thick Willy
"America's cities are nightmarish hellholes full of gun wielding "vibrants" along with illiterate sexual predators from all over Mexico and Central America."
Tsk, tsk, the TRUTH is HATE don't you know?
Three El Salvadorean MS-13 gang members arrested for 'brutal, heinous' attack after they 'snatched 16-year-old in Long Island and raped her on golf course'
White Woman Beaten to Death in Front of 4-Year-Old by Black Ex-Boyfriend, KHOU
There is a video of the rally at the article link.
South Philadelphia Neighborhood Rallies to Stop Attacks
Dann Cuellar, ABC 6, June 2, 2015
Tell me. Is there anything illegal aliens can NOT get?
Oh wait - I know... Deported...
IRS Finally Admits Illegals Can Get Back Taxes Under Obama Amnesty
Stephen Dinan, Washington Times, June 3, 2015
Sick of it yet? I know I have had just about enough of it. Seriously for this to be the state of affairs today, people must of been working on this for some time now. What year did immigration policies change dramatically, they must of? Does anyone know when? The Black family unit didn't die on its own, it was helped along the way.
'Gun Control' means being able to hit what you aim at.
Lyndon Johnson ended 'immigration laws' (for all practical purposes). He ALSO ACTIVELY promoted; and made funds available; for the idea of 'NEW SOCIETY' ('WELFARE', for those not quite up to speed), which began the disintegration of the so-called 'black family unit'. Your post denies the poor of other racial make-ups, though, and the poverty which ensued crosses ALL barriers to this day. Wasn't HE the 'president' that Kennedy had so-called 'appointed' and 'annointed to be his V.P.? It started in November, 1963...
RAND is NOT his Dad. He supports the use of drones to kill 'suspected' (NOT CONVICTED BY A JURY OF PEERS) criminals within the CONUS; and is an avowed 'Israel-Firster', as well. MORE OF THE SAME is like choosing between the 'LESSER OF TWO EVILS'.
Your questions are viable and honest in the asking. Your ignorance in these matters is totally understandable and quite refreshing to see (those who ask questions and are seeking honest answers are far more intelligent; and indeed MORE HUMAN; that those who refuse to ask of things they know nothing of; due to arrogance).
I am loathe to admit that I directly donated funds to Randy's 2012 Senate campaign.
You are one hundred % right buddy, I am saving to purchase a home up in Maine or New Hampshire. The demographics are just right. I will not be subjecting my children to growing under fear or having thier education constantly disrupted by un-disciplined people.
Anyones who says "Anyone trying to buy a home in an American city is a moron. Anyone trying to raise white children in an American city and send their kids to public school is an abusive parent." a self-righteous asshole.
Lordylord,
I had to log in to upvote you, good comment.
"Building equity," pfffff. More like being an obedient serf paying tens of thousands of dollars in interest to the banks for money they worked so hard to create out of thin air.
Why should I commit to a house for 30 years when I can't guarantee my job will be there tomorrow in this globalized mind f*ck of a corporatocracy? So the finance industry can skim several percent off the top of the transaction when I move?
With renting, there's no replacing of appliances when they break, no soaring property taxes, and the freedom to move when a situation changes.
Sounds more like jumping off the consumerism debt treadmill than "not building equity" buying high in the housing bubble 2 only to be underwater on your loan a few years from now.
Suckers!!!! Move to Texas!!! Buy a nice home and pay $1,372 per/month in taxes.....
Building equity......what a load of crap!!! Home ownerahip had become a tool for tax entrapment
Bumpo has this.
Let the people who think they are rich, get a dose of reality (I say this knowing it might affect some of my small nest egg). Suspending reality is hurting people that should not be hurt. Again, intervention, picking winners and losers. And if you thought that was okay to do, you are still picking the wrong winners.
People who can afford houses will want goods and services for those houses. That might, oh my gosh, get some of the economy moving again.
This bubble finally bursting will be a lot like an enema, truly, the shit will hit the fan and splatter big.
Really does boil down to suspension of consequences, doesn't it. All the way up the ladder really. Again and again. And the only way that this is made possible is redistribution (other people taking the hit). Can't go on forever. But it sure can go on for a surprisingly long time.
Can you say a 50% drop? Can't have that though, the NAR Cabal will not allow it!
Bingo!
Had the FED not decided to prop up the market by basically giving Blackstone and other cash at 0% to buy up all the starter homes in America, housing would be affordable.
Rents in around the NYC area in NJ are averaging around $1500 a month for a 1 bdrm. Who can afford this nonsense?
$1500 for a one bedroom? Try $4000. Unless you mean to include shithole areas like Trenton and the South Bronx.
Submersibles?
"Let's see where the prices of homes go if the Banks were forced to put all their underwater homes on the market"
That's really it. I am not sure how its being done now but back in the hey-day the home would first go up for auction with all the loans attached (1st, 2nd, 3rd mortgage..). If it didn't sell they wiped off the last one, so in the case of it having 3 mortgages on it it would go back up to the auction block with the 1st and 2nd, after that the 2nd would be wiped off and it would go up with only the 1st. If it still didn't sell then the 1st would be wiped and bidding would start at zero and whatever it sold for, it sold for. How is this no longer happening? Did a rule change? How can they just sit on the property? At the town I live in the local municipality is starting to bull doze them because some houses have sat so long they are structurally unsafe. I am in Suffolk County in a pretty decent area so can only imagine how this is in the rest of the country.
It would have been better if Blackrock did not create all of those buy to rent funds so that they could bail out the banks.
Exactly! Put all the shadow inventory on the market all at once. Fiction, Kabuki, Bullshit Circus Side Show.
"Let's see where the prices of homes go if the Banks were forced to put all their underwater homes on the market."
Or better yet, simply remove the force that allows them not to liquidate????
I hear Detroit real estate is cheap...
odd how most of the states are Democrat governed.
Have the three white people left in Baltimore moved out yet? Or still packing?
F em. They voted for Obola in these areas. F Millenials and F their Baby Boomer parents.
The self absorption and stupidity was passed from the parents to their helicopter children.
Blaming the victims. Divide and conquer in play.
The victim is not always blameless. If I clime into the lion enclosure at the zoo, who would you blame if I were eaten? The lion, the "victim", or the zoo keeper?
stupid analogy
Who do you think has been making the decisions and directing the country these last 50+ years? Who designed the school system? Who decided to off-shore domestic manufacturing? Answer these and you're half way there.
I wasn't consulted and I doubt you were either. Who runs/owns the show?
Soros and his ilk...
;-D
So you consider Soros "liberal" ?? Nigga, please....
.
Hey Ignatius,
I consider Soros to be greedy, evil, and self serving. Is that the same thing?
;-D
Reminds me of the youngish liberal woman in the TV entertainment industry. She took a trip to Africa in one of those drive through safari parks.
She rolled down the window to get a better picture of a lioness. The lioness killed her in seconds. She won The Darwin Award.
I think she was a Millenial. I bet her baby boomer parents never said no or never said - don't do that because it is stupid.
freddie, you're retarded.
it doesn't matter who they voted for, obama or anyone else.
you really think how people vote determines the course for the country?
if so, i have a bridge in new york to sell you.
Yes, she was 29, an older millenial. Her friends said, and I quote, "she was a 5 foot 9, 90 pound woman who thought she was and acted like a 6 foot 4 250 pound man."
Anyone raising a daughter with that mentality is going to be presiding over her early funeral. Either raped and murdered while she goes gallivanting around the city at night by herself drunk, or, less likely, killed by a lion.
Femynism has raised a generation of utterly naive women that are like lambs thrown to a pack of hungry.....Lions.
Sort of hoping you do Lordy.
Working and "doing everything he's supposed to"----?? According to whon ? According to Reason and his own thinking ? NO. He's pining away for a chance to buy something which is obviously overpriced, which means what ? It's price will be coming down. The thing he's not doing is living in a cheap studio apartment and putting his savings in Silver Bullion; but then only geviuses do that; not people who "do what they're supposed to".
Negative, sonny, let's look at SOME REAL DETAILS:
The Dismantling of Amerika
Seattle is a perfect microcosm of their overall leveraged buyout/pump and dump of America by Wall Street.
Today, over 40% of the homes costing over $400,000 are purchased by mainland Chinese.
Back in the early '00s, the Seattle Chamber of Commerce, together with its affiliated Trade Alliance, gave seminars to locally based corporations on the most efficient way to offshore as many jobs as possible.
Now with all those jobs offshored to China, money flows back to Seattle and environs to pump up the real estate prices, including investments in local buildings for more condos downtown stemming from EB-5 investments (EB-5 is the visa aimed at rich Chinese, from those offshored jobs and investment and technology, which are paid for with investment in local real estate development).
Going by official government statistics and data, of the 280,000 jobs created last month, only 1,000 went to people born in America, with 279,000 going to foreign visa workers and undocumented workers, and although the data doesn't distinguish between the two groups, external data strongly suggests the majority goes to foreign visa workers, which have been flooded into this country since 2008, although their numbers have been steadily increasing over the past several decades!
As far as undocumented workers, they are hired, then frequently arrested and deported, with their jobs recycled again and again as "new jobs."
That's the process, that's the plan.
Beginning to understand now how the middle-class has been whittled down to next to nothing?
Interesting points. The number of jobs going to those born in the US is not something I have seen before. Where is that found or do you have to back into it with number crunching?
Let me help...
http://www.zerohedge.com/news/2015-06-06/illegal-immigrant-recovery-pres...
We are outsourcing/insourcing all of our jobs to India....Americans need not apply.
Millenials should not be affording "median house price" prices yet. Try starter homes.
If Fed let prices correct "affording" a house would not be a problem. That was not allowed to happen, but those who think that their house is worth more then the rotting boards and plastic plumming are in for a suprise.
They don't build starter homes any more. No profit in it. But your point is well taken. Old houses are the new starter homes. Bring your toolbox.
"Your Dad DID teach you how to fix things, right? Oh, that's too bad. Well, good luck. You're gonna need it."
Renovations still require money.
Yes, but they also require back-breaking labor.
Restored a Victorian house. Took 11 years. By myself. BTDT.
And?
Hard mode: finding an affordable home that has a few acres. People are being packed in like rats.
Many people I run across are rats.
The baby boomers created a generation raised by women when they left the family to seek more exciting things like cocaine, motorcycles and drinking. So no, most of them weren't taught to fix things.
"The baby boomers created a generation raised by women"
NO. The baby boomers created a generation raised by the State and the TV because the women left to find a more meaningful life in an office building. Without the woman/wife/mother, the family unit breaks down. Apparently, that was an acceptable sacrifice for women to make.
I guess inflation had nothing to do with a man not being able to support a family on one check with your broad swath of paint.
How quick we are to condemn and ignore other facets of the same problem.
Feminism is a whole nuther issue.
Yup. Duct tape, vice grips, WD-40.
Hold on Tort, unless those starter homes come with granite, 2 1/2 baths, and a 3 car garage I couldn't even think of moving in. Well unless it is a completely renovated condo that has exposed brick and stainless appliances. That brick is just tits man.
Don't forget the nuke bomb shelter below with the Jacuzzi!
Hold on Tort, unless those starter homes come with granite, 2 1/2 baths, and a 3 car garage I couldn't even think of moving in. Well unless it is a completely renovated condo that has exposed brick and stainless appliances. That brick is just tits man.
If you were as quick to analyze the data as you are at shooting from the hip, you would've noticed that the home prices (for all homes) have outpaced incomes for Millenials as well as for older demographics.
E.g., back in the 90s, when I had a few years of experience under my belt, I was able to buy a $450k home in CA that was 3x my salary. Since then, the same home (now older, with more wear and tear) is double the price. I can assure you that the same job, or even a job two levels up does NOT pay you $300k/yr.
Math is math and stats are stats, and the author is absolutely correct that homes are less affordable these days. The more salient question would be Why?
A: the FIRE* industry, that feeds off commissions, and needs people to sell every few years, rather than stay put. Each time a person sells, they will seek to offset realtor fees (6%) and make a profit on top of that. It is that combination and short ownership cycles that drive up prices. And when the Fed dropped interest rates, well, it was Christmas for the FIRE* industry. With lower financing costs, Realtors and Mortgage providers had the means to drive up costs -- since the sales pitch was (and always is) "Affordability" of monthly payments: "How much can you afford to pay per month?"
This is yet another example of the inherent Need of the fiat currency + FRB Ponzi scheme, and a declining Ability of people (the Bottom 80%) to keep up with said Need For Growth.
Unless you suffer from Stockholm Syndrome, or are still stuck on pre-1971 monetary paradigms, the Big Picture seems really plain to see.
* Finance, Insurance, Real Estate.
To Kirk; Yes. For all the people searching for the "inflation"; look in the house prices; because they are your most direct connection to the Big Banks, Big Payouts, "Free Money"; world. Inlfation is the most obvious and the most consistently ignored, and mis-understood phenomenon of our time. Very, very few people actually understand what it's doing to their savings.
What starter homes? Blackstone and other Wall St firms paid cash to buy up hundreds of thousands of starter homes with 0% loans from the FED. There are no "starter homes" available in most areas of the country.
I challenge you to find a starter home in NJ, CT, or downstate NY for under $350K thats not in Camden, Newark, or some other crime infested shit hole.
Both Camden and Newark used to be centers of American productivity and prosperity, before the politicians sold our jobs to China; and the mobs of rapidly reproducing tribal sub-normals moved in.
Riverside - you got to be kidding me.
who would want to live in Riverside - ?
but but but... it's the "Inland Empire"!
some folks enjoy breathing air they can see.
You guys have obviously been there.
Riverside - the bedroom community to - - San Bernadino ! Whoo Hoo
Actually it's more a bedroom community to the OC. Priced out residents commuting from the 91 to the 241 and the 55.
Riverside - shake and bake.
Meth heads
The fucking Fed inflated the housing market again. They are destoying our purchasing power even as we speak and its affecting every man woman and child in the U.S.
Yup. tha t's right. Better get your share of the world's real wealth; Silver. Because it turns out there isn't gong to be a share for everyone.
Thanks, IAB, you've said it all.
And each and every time the Fed does that, they do it in conjunction with their bankster bosses who pump out those credit derivatives, then purchase the CDSes against them!
Someone should tell all these millenials "look, sorry but we sold your asses down the river generations ago. Now get back to work! "
They're getting gouged so bad for tuition price hikes that universities ought to give 'em a nice place to live.
Oh, the universities do give 'em nice places to live. That's one reason why, when the little darlings graduate and go forth into the world, they expect top-quality, super-hip everything provided instantly, no working or waiting required.
It's not that I've been here at ZeroHedge 4.5 years reading this theft that continues. It's that I was awake 4.5 years before that. I just realized That's a long fucking time for middle class to be raped and not stop it.
Amd the Moral of the Story is...?
Hint: [baah, baah]
Well, when the "middle class" goes from 70% down to 4%, the numbers don't fare well, as power tends to go hand-in-hand with the majority, which has shown itself pretty fucking stupid these last three decades, just awaiting another Bush or Reagan or Nixon to elect.
What we need are higher taxes, moar regulation, swifter job losses, and zero yield on savings.
... oh, wait a sec ....
An Obama 3rd Term would fix everything. He just needs more time
You just have to be the right color.
FUCK YOU, MILLENIALS!! BASTARDS!!!!!!!!!!!!!!!!!
Hey now, 61% of Americans say that a woman raising a child by herself is okay. Get with the program and go knock up some sluts and make little bastards.
Microaggression.
Maybe they should buy a house in Detroit... I hear properties are pretty cheap there.
Looks like it's Suffragette City for the Millennials then!
except for San diego and portland why would you ive in any of these cities anyway
"They are destroying our purchasing power even as we speak..."
The banksters do NOT destroy purchasing power. They steal it.
The banksters "print" counterfeit money, and then they, and their cronies, get first dibs at using this counterfeit in the economy. Their purchases utilizing their counterfeit leaves fewer goods and services for the actual producers of the goods and services, and so the producers suffer increasing prices at the stores. The said same counterfeit also steal returns on capital and labor, and so economic opportunities are stolen as well--shipped overseas to ostensibly make cheaper goods for the masses, but really to serve the banksters and cronies with slave labor production.
I.e. the banksters, and by extension, their Zionist owners, have stolen our purchasing power, and not destroyed it--It literally resides in their pockets, lavish condos, and private jets.
Liberty is a demand. Tyranny is submission..
Travel to Europe, where even an apt is out of range, never mind an actual house
PS That's where we are headed, Europe is just a couple years ahead
This is true. European housing is absurdly expensive compared to what workers actually take home after they pay 55% in taxes so their governments can bring in millions of Africans and Muslims to replace the native population of Europe.
Oh you can borrow 600K Euro at 1% interest. But the mortgage term is 50 years and the interest rate resets every 10 years.
Euro gov also believe they own all property
They probably do. I mean, it's already at that point in the U.S. so I haven't even bothered researching the details in Europe. I'm sure if they want your apartment building to house Algerian refugees then you just have to give it to them. And of course no home schooling, after all, your might anti-social(ist) people. Your children belong to the government too.
In France if squatters order a pizza, they have a right to stay
http://www.reuters.com/article/2013/06/11/us-france-squat-specialreport-...
True
Free and clear title
A lot of countries lack even this basic tenet of property
It's all 50 year or 100 year leases, to be "automatically" renewed by the state
Just don't ask for that promise in writing
In Europe you see way more multi-generational households. Often times, the only way to afford a house is if the grandparents, parents and grown children live under the same roof.
Watched my parents spend my childhood fixing up a "fixer upper" took them 15 years....fuck that I'll rent for life before I spend it painting, spackling, and cussing every weekend.
We need to rethink the "american dream".
Just so you know, rent will keep increasing until you buy or die.
What's wrong with the Beav', June?
You have to enjoy doing it. Some see it as work. Drudgery.
Others, whom Thoreau described as "artists of life," see a dilapidated shack as a blank canvas.
So do taxes and inflation on home repair materials, my labor is more expensive as I get older as well, not really sure what your point is. However, I've lived in the same rental home for 4 years, had very miniscule amount of rent increase, basically none.
When you factor in the amount of interest you pay on a mortgage, maintenance, repairs, taxes, insurance, etc...there's little monetary upside to buying a home.
The only upside to buying a home is you now rent it from the government/bank and therefore you have a bit more freedom to make permanent changes/etc. I don't really see buying a home as a monetary decision because you're almost never better off buying.
This whole housing price inflation game bullshit is a shame. White people annoy the fuck out of me. Most of us are to lazy or stupid to be worth a fuck, so we put stupid crap like house values, insurance, and funny money on a pedestal next to Sophia Loren in her 20's, fire, and the wheel.
I don't understand what your comment is supposed to mean. White people think housing prices are of revolutionary significance like fire and the wheel? Other people don't? High housing prices or low housing prices or changes in housing prices? The concept of housing prices? What?
This whole housing price inflation game bullshit is a shame. White people annoy the fuck out of me. Most of us are to lazy or stupid to be worth a fuck, so we put stupid crap like house values, insurance, and funny money on a pedestal next to Sophia Loren in her 20's, fire, and the wheel.
If they want to live in a City they are stupid to start with.
I can't take $10,000 out of my checking account without being treated like a criminal due to the nonsense AML laws.
Yet, we've allowed the Chinese and Russians to use our real estate market to launder their ill-begotten gains for the past 5+ years without batting an eye.
If the rent rates are not noticeably cheaper than the housing prices then it is hard to say that housing is unsustainable. If the millenials can afford rent, and rent is in keeping with housing, I'm not sure how they can not afford to buy.
It's the kids of the millenials that are going to be really screwed.
I think the cornicopia of white races will adapt and overcome. A compacency had developed and the ideals and organizations that help up a strong white civic culture and community had been destroyed. This has happened before, their will be a renaissance. Necessity is the mother of invention, boomers sat around in an idiotic compacency after eating the bad acid and smoking pot and watching too much tv. The shit will get hairy for millenials, but this is where the new leaders will rise from. Mexicans are nothing to worry about, there just like italians except they work harder and eat tacos instead of meatballs.
See but I have this all figured out. Move to Europe, claim refugee status, get free housing, cars, cell phones, internet, TV, clothing, food - plus all the white girls you can rape!
Oh, this only works if you're not white.