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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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Come to Detroit.
Ground hasn’t yet been broken on a new Red Wings Sports Complex and today I heard chatter about a new basketball stadium for the downtown area.
That’s right, Detroit went BK yet can afford new stadiums.
Yeah detroit is great if you like worrying about your personal safety at all times.
I hate that shit. How is that able to happen?
Of course Detriot can afford new stuff now that all of the old debt was BK'd. Why should a city be different than a person?
This is what I see tons of people do around me. Neighbors I had a few years ago just BK's a year earlier and had a new $65,000 diesel Ford and Taurus SHO sitting in the driveway. So BK your old debt and put $100K of news cars in the driveway. The 'Merican Dream. Rinse and repeat every 10 years.
The Millennials who re-elected Barack Obama have been introduced to a life-style they never paid for. And now they have greater opportunities for employment and housing than most past indigenous Americans.
When the world “millennials” is used now it must be remembered that the explosion in immigration from the Third World, legal and illegal, is a youthful tsunami sweeping into communities throughout the nation. In short, 43% of millennials are non-White. In short, therefore, this wealth-transfer government considers they are due massive support and subsidy from the taxpayers, e.g., ninja loans or unearned scholastic admission to America's unviersities.
Dr. Walter Brasch, a university professor and author, explains in “A Nation of Millennial Entitlements” (May 30, 2015):
“Our society is saturated with people with college degrees who complain they didn’t get the “A” they wanted, and now whine it isn’t their fault they have so much debt and no job.
“Many of our millennial children believe they are entitled to have what they believe their needs are. After all, the media skewer them with ads, photos, and stories of people who ‘have it all.’ Isn’t it just logical for teens and those in their 20s to hear the siren call from the media and want the bling that others have?
“When all the ephemera are stripped away, we are left with a college generation that believes they are entitled to that high grade, that job, that upscale lifestyle.”
http://www.marketoracle.co.uk/Article50897.html
@JR
Whites need to keep in mind that immigration, legal or illegal, is population replacement; non-whites replacing Whites.
teutonicate nailed it for me on ZH yesterday, Laddie, (emphasis mine):
America was created in large part by the industrious nature of white European immigrants that came from related (although not identical) European cultures.
Even if the immigration that we are currently experiencing were legal, it is the nature of that immigration, not its illegality that is the issue.
Most of the illegal immigration that is occurring in America now is of peoples that come from cultures that are completely unrelated (and in some cases hostile to) European cultures. Many of these immigrants have also not expressed any desire to assimilate into those European cultures - they are migrating for purely economic (or in some cases subversive political, e.g. La Raza) reasons.
For this reason, the nature of the immigration that we are currently experiencing in America is fundamentally different than the immigration that occurred in the past - which created an America that was a mix of fundamentally compatible European peoples.
People have a right to protect their culture. Wanting to protect your culture does not make you a hater, it makes you a realist.
JR that was a fabulous post thanks for sharing it with us!
There are natural laws. One of them is a species or individual for that matter, who is unable to fight back and defend him/herself against others who seriously intend harm will cease to exist. However, if someone is seriously out to harm you or deprive you of justice, you have an obligation to fight back.
This entitled boomer fresh out of the Army and back from Nam found no job(s) for me.This at a time when jobs were supposedly plentiful.
A: I was too young
B: Not qualified
C: No experience
D: Was a potential drug user as the BS spread about drug use in Vietnam.
E: I was a baby killer. Military was hated by more 'enlightened' boomers of the time. The same boomers whom now send their grandchildren off to be slaughtered as hero's.
After a couple of years I returned to the Service, only this time went into the Aviation Electronics field which provided me a decent living after discharge. At least until everything became throw away.
I have only recently become unemployable because most of my field has been given to foreign interests by government and it's corporations and because of age of course.
I have no regrets and I never expected anyone to take care of me. My family survived and I eventually ended up with a very modest home.
No publication(s) back then screaming about how I was mistreated. No screaming about me not being able to afford a McMansion or brand new Vette. No screaming about my meager $7 per hour as an apprentice electrician. And I never even thought of blaming my parents generation for my unsavory predicament. And yes, I even lived with parents for a couple of years. And no, back then getting a school loan was far more difficult. And no, I did not own my home until I was in my 50's.
You'll have to excuse me for not having much sympathy especially for those partying on governments school loans with no intention of paying it back.
No regrets? Come on, I hate it when people say that, I have a ton of regrets,
Sir,
I am sorry for what was done to you. This too is an injustice, as is what is happening to our veterans today, and as what is happening with the mass exploitation of this generation of millenials finacially.
When I am in office, These crimes will be addressed.
El Presidente'
vietnam was a crime against the american youth and vietnamese people by the mili-indus complex.
you had the unfortunate luck to be the tail end of boomers. the big brothers bought houses first, got too old to be drafted...while the 10-15 younger set, saw prices much higher and drafted. however, if you stuck with it, were patient, 10yrs after 1976 the bull was tearing up and houses went to the moon. you didnt do as well as your older brethren, but got a taste---but with much less room for error....thus the large divide between the first leg of boomers who retired with pensions 10 years ago and the end group here with a lower frequency of pensions and having been slapped by two stock crashes towards the end of their savings life....and another on the way.
Solution for millenials --
1. Buy gold
2. Wait a year or two or three for the housing bubble to collapse
3. Sell gold
4. Pay cash for nice house
That is my plan...just getting sick of waiting goddamnit.
I bought gold and silver. The rest of the Millenials bought Apple and Google stock, quadrupled their money, and are laughing at my losses.
So true, I'm done fighting that fight. Too late to get in on the exuberance now so I just hope my gold pans out.
(song: America; musical Broadway play: West Side Story)
Skyscrapers bloom in America.
Cadillacs zoom in America.
Industry boom in America.
Twelve in a room in America.
Unless millenials have rich parents, most are perpetually fucked.
First questions is: Do you really want to buy a home in one of those listed cities?
Question 2: And what the hell for?
Not to interrupt the Millennials schadenfreude (usually that's one of my favorite activities)... but aside from DIA and technically the IE, there's obviously a connection with these data points: water. (That and hipster overload). No one here would dismiss the Fed's and SLMA's primary role in all of this, etc. I just think that it's interesting that once the corrupt narco/foreign money washes ashore to help inflate these values, it's too lazy to leave the view of the biggest bathtubs of them all. I guess it's easier to launder your fiat when you can just walk down the street to do so in the water. If/when that hot money leaves, it will be interesting to see how markets adjust. And who is left holding the inflated RE bag and take the real bath. Millennials still won't have a pot to piss in, but I suspect a lot of yuppies will get cleaned out.
That's all the puns I could fit in one post.
Keep poking the millenials and making fun. It has been normal and typically managable to oppress minorities in this country. But when you take the largest subset of the population and pull out the rug from them, there will be consequences eventually. This financial oppression will change the psychology of this generation. In my opinion they will become cold, hard, and bitter. They will see what you had and how they were treated and when its your turn to be oppressed they will be all to happy to assist and your eventual raping. First they came for the minorites and I did nothing, because they were horrible, then they came for the millenials and we did nothing because they were kinda weird and addicted to selfies, then they will come for the boomers and nobody will be left to save the old spoiled bitches.
there are more millenials than boomers, once they learn how to vote regularly (local/state not just federal elections) and the boomers peak (about 8 years) the boomers that identify with millenials will be 'of age' for office. means testing for certain....but probably a whole lot of libertarian take-care-of-yourself legislation while the millenials start to make money (finally) and the gen xers hit peak earning (a shadow of boomers relative peak earnings).
both gen x and millenials will have experienced a life of lower expectations and borne the brunt of 'labors share of gdp' generational lows.
of those two groups, those who are prepared to pick up the pieces after this second 'great cleansing' (RE and stock collapse) will buy stocks and RE at multi-generational lows.....while the boomers attempt to liquidate said holdings to buy new knees. itll be about 15 years but the tables will be completely turned.
Not to interrupt the Millennials schadenfreude (usually that's one of my favorite activities)... but aside from DIA and technically the IE, there's obviously a connection with these data points: water. (That and hipster overload). No one here would dismiss the Fed's and SLMA's primary role in all of this, etc. I just think that it's interesting that once the corrupt narco/foreign money washes ashore to help inflate these values, it's too lazy to leave the view of the biggest bathtubs of them all. I guess it's easier to launder your fiat when you can just walk down the street to do so in the water. If/when that hot money leaves, it will be interesting to see how markets adjust. And who is left holding the inflated RE bag and take the real bath. Millennials still won't have a pot to piss in, but I suspect a lot of yuppies will get cleaned out.
That's all the puns I could fit in one post.
The markets are on the verge of collapse. It's better the millenials don't buy anything right now anyway...
http://www.globaldeflationnews.com/dow-jones-industrial-averageelliott-w...
houses are for the top 1%
the rest should live in shipping containers
"Microhouses." So Green and chic. Totally hip to live in a jail cell.
This is student hardship, 2015-style:
Students “loans” that cover rent, utilities, food expenses for commuter students, fees for athletics, health and counseling, technology, transportation, student union fees, textbooks, supplies such as notepads/paper/writing implements (pencils?)/folders, computers, printers, scientific calculators, microwaves, refrigerators, lamps, other dormitory necessities, travel to and from campus – including gas and maintenance on personal vehicles , funds to cover travel during school breaks, study abroad trips, child care for dependent children, clothing… and even cell phone plans.
In short, a banker doesn’t care if the students buy drugs with it, just a long as they take the loan money – all in the end guaranteed by the US taxpayer.
Nor do the university presidents. Front page San Francisco Chronicle today:
"As the rate of inflation fell to below 1% last year, pay for public university presidents soared by nearly 7%, the latest survey of executive compensation from the Chronicle of Higher Education reveals.
"Median pay for heads of the nation's public universities rose from $401,000 a year in 2013 to $428,000 in 2014..."
Correlates nicely with the Chinese and Russian money flows into the country.
In the case of Denver, it's their own damn fault.
Legalize pot and set off a gold rush of stoners to your city, who all need a place to put their couch and TV set.
Rents skyrocket.
More people rent thier houses out rather than flip them to a new owner.
Supply of used houses drops.
Nothing left to buy except new suburban dream homes affordably priced starting in the 400s.
But you can get high and pretend that life is good.
Until it isn't.
And then you can get higher to forget about it.
What's wrong with "stoners" who can afford to pay higher rents than the renters they are replacing? Seems iike a GREAT deal for current homeowners and business operators who have a low existing cost basis but suddenly are reaping the golden benefits of the Greenrush.
Or are you an aggrieved ex-renter or hopeful home-buyer who got priced out because of poor financial planning?
I'm someone who owns two houses outright.
So, to answer your question, I'm profiting handsomely but do not want a bunch of brainless immigrant Californians giving me orders in my own state.
"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."
Why does a kid (29 is a kid), masters degree or not (at 29?...you're not a master at anything yet), want a shack of their own anyway?
Oh yeah...it's an "investment".
Who knows what it could be flipped for in a couple of years...
Right...
Cry me a river.
m
Gee, the horror of working fast food whilst accruing student debt! the horror!
I am becoming more sympathetic to the bums in the park. They make no demands of me (well, there was that 99% things for awhile where you couldn't tell the bums apart, but that blew over).
I got the boomers baring their fangs over the million they are "owed" in Medicare and SS bennies, and I got the millenials whining about the bright and shiny future they are "owed" by virtue of their ability to fart fairy dust.
The bums in the park are more realistic than either of them.
...and what are you whining about?
@I got the boomers baring their fangs over the million they are "owed" in Medicare and SS bennies
People who are “owed” can rightly claim what they paid for. Throughout the land there is this campaign to limit the incomes of retirees and savers, transferring as much as possible to America’s bright shining new voters – the mob that reelected Barack Obama.
Where have you been? Do you have a job? Have you looked at your pay stub? Federal social insurance taxes are imposed on both you and your employer.
FYI from Wikipedia:
For 2014, the employee's share of the Social Security portion of the FICA tax is 6.2% of gross compensation up to a limit of $117,000 of gross compensation (resulting in a maximum Social Security tax of $7,254). … The employee's share of the Medicare portion of the tax is 1.45% of wages, with no limit on the amount of wages subject to the Medicare portion of the tax.
The employer is also liable for 6.2% Social Security and 1.45% Medicare taxes,[11] making the total Social Security tax 12.4% of wages and the total Medicare tax 2.9%. (Self-employed people are responsible for the entire FICA percentage of 15.3% (= 12.4% + 2.9%), since they are in a sense both the employer and the employed; however, see the section on self-employed people for more details.)
http://en.wikipedia.org/wiki/Federal_Insurance_Contributions_Act_tax
Hardy-freaking-har. What you "rightly paid for." Depending on your age, perhaps you will avoid a mugging. by reality. I have paid since 1986, and I have no such delusions.
Rightly paid for! Sound like a four-year -old . . .MINE!
Perhaps, JR, next time you see your reflection in an ATM machine, you will say a little prayer for me and others like me. That you can retrieve little pictures of dead people from the machine is because I put them there for you.
Take a looky at who will be loading the ATM for me. Expectations are low as to what I am "owed."
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.
Sounds like a market, imagine that.
"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"
There was an article last month in New York Times, may have been April, discussing Chinese immigrants buying up Brooklyn, as they are doing also in Manhattan.
In fact also New Jersey across the river from NYC, Indians also.
Not good if you are a White person, I can assure you.
the chinese, indians moreso, and many other cultures outside of anglo-america often pool their funds to buy homes and businesses...once the motel is up and running, they bring the next family over, refi the property buy another. from and anglo perspective they are very clique-ish, but its their culture. which then evolves up into the village/village leader then religious sect, and sometimes nationality...most stop with religious sect and leader though.
when immigrants came from europe, learning english was a priority, assimilating was a goal.....not so much anymore....there are so many spanish speakers they dont need to learn english to get along
Moronic race-baiting.
This has nothing to do with skin-color; it has to do with asset diversifcation/flight to safety on the part of international investors who--oh, the Humanity--happen to have different melanin levels. If you were Chinese (and had "yellow" skin) and had significant discretionary cash, would you not allocate some portion of your assets to the Capital of Capitalism, in both a state and nation that are nothing if not erected to protect the interests of the hard-asset class?
Surprised the entire State of New Jersey isn't on the list. NJ has the distinction of being #1 in both Property Taxes and Overall Taxes.
they are talking purchase not being able to keep it.
Woohoo!
We're #1!
We're #1!
We're #1!
We're #1!
WAIT A MINUTE:
"Millenials have no hope."
FULL STOP
What kind of bullshit statistics are those.
Absolute numbers please, what are the average millenial earnings or the average home mortgage, per area?
Yeah they might not have the dough ... but at least they can now change their genders like Caitlyn with total pride & support! Woohoo!
They should look at container housing...if that's still too expensive dumpsters will do too!
Wayyy more environmentally friendly than cardboard boxes!
The financial tragectory of the US will not be settled untill a substantial number of Gen-X and Millenial generations take control of the political system in this country. At present they have not shown the willingness or ability to do so.
The US has been holowed out since at least 1990 - politically, financially, legally and culturaly.
Young people have simply beocme the NEW long term victims.
Untill they wise up they will stay victims, especially with the Democratic Party desire to legalize all the Hispanics that are invading the US, unhindered.
And now comes Generation Z: Hispanics represent California's largest ethnic group. According to the California Department of Finance, among 15- to 19-year-olds in California, 49.4% are Hispanic, 29.2% are white, 10.9% are Asian and 6% are black.
Does Z mean we are running out of generations? Apparently, not. More babies now are born to non-Whites in America that to Whites. I AM VOTER, HEAR ME ROAR?
The next Genratation will be called/rated 'Za'
If California is giving Hispanics minority status, it is a fraud and this need to be addreed in court.
TeePees would be a more historically appropriate & socially sensitive choice anyway! Plus wayyy more transportable too!
And yet they'll keep voting left.
Uh, don't live in those cities.
We don't need no stinkin' house ....
They shud all live in the defunct Keystone XL pipeline!
Housing is not inflated in any of those markets; it is properly priced using an old rule: supply and demand. And so-called "good jobs" with "good salaries" obviously are not...if they do not enable you to afford a place to live.
So....move to Topeka; take a 30% pay cut; but a 500% life-style raise when you are able buy a house and build long-term equity.
Otherwise, stop bitching: you are not entitled to both a hip high-tech job and a house at below-market prices.
Two of 4 housing cities in the East on that map,(if I were a Millennial) I wouldn't want to live there anyways! Can you guess what these are? If you guessed Wash.DC and Miami-Lauderdale then you are correct. No need for Millennials to worry about that, they have mastered the use of cell phones to the extreme. They will be able to make a living off them soon enough, across the board, across the country. No wonder PC sales are dying a slow agonizing death.
I wouldn't live in those 2 hellholes, even if you paid me.
There are a LOT of great places to live in the US. Maybe overcrowded and hyper-expensive aren't right for everyone? Small(er) towns have their own mojo.
CAn't buy a home or rent in Dallas, Austin nor Houston .... Impossible
You now know where the Chinese have been buying in the US.