Millennials and living at home: For the first time on record the most common living arrangement for

[jtuck004]

Millennials and living at home: For the first time on record the most common living arrangement for young adults is living with a parent.

The topic of young adults living at home is critical to the housing market since it will impact future home building, renting, buying, and purchasing behavior for the foreseeable future. It is interesting that Trump being the de facto candidate for one of our major parties is basically a real estate marketer/developer that pitches real estate that is “too great” for most Americans. On the other end, we have Sanders who is essentially the direct opposite of Trump (i.e., free college tuition, break up the banks, etc). The billionaire and the non-billionaire – interesting. At this point, you have 3 candidates left standing and in many households, this divide is playing out. You have Taco Tuesday baby boomers that essentially were fortunate to buy at a time when the housing playing field was easy. I even see this in neighborhoods I’m familiar with. These are people that bought and many don’t even have college degrees. In virtually every case, many would not be able to buy in their own hood today even if they took a time machine and came back with their similar educational training and inflation adjusted income to today’s hyper competitive arena. When a home goes for sale, it is bought by investors or by two working professionals (most common I have seen are tech couples made up of engineers and programmers). Parents may gripe but now many have their Millennial kids living at home. If it feels like a common trend it should be because this is now the most common living arraignment for young Americans.
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I thought everyone was putting in applications to buy? That is clearly not the case. The volume of mortgage applications is weak. Millennials are in their prime buying years and it is simply not happening. For the last five years or so that gap in buying has been made up by investors including domestic and foreign buyers. With minimal supply and prices set at the margin, this was enough to push housing prices sky high once again even with weak income growth. People ask about the foreclosure hit. It happened. Over 7 million Americans lost their homes via foreclosures. Many investors bought these up. That hand off happened so quick that people missed the addition of 10 million new renter households in the last decade.

http://www.doctorhousingbubble.com/millennials-and-living-at-home-millennial-buying-homes-trends-money-housing/#more-8714

I remember going to the lake on Memorial Day, everyone got together. But just this week I heard people discussing their plans, and it was how "to get away" from the people they live with.

Still, that has terrible implications for the future. People who own will control the lives of those coming behind, and that won't change in their lifetime or their kid's.They control the choices they have now.

[RKP5637]

1. I recall way back visiting my relatives and they had generational homes.

Typically the main house and then other houses attached for off-spring. They were quite nice and everyone seemed quite happy. Typically there was a passage way between the houses, especially for the cold harsh winters.

I imagine freedom of expression could be quite difficult if one did not adhere to the families rules, if any. But I was way too young then to understand such limitations and my visits were very brief.

[mopinko]

2. typical in chicago 2 flats.

folks on one floor, kids on the other.
i sort of think that is a perfectly good way to go, but i admit i dont get along all that perfectly w my kids.
bil and sil lived upstairs from hubs parents for a long time. it was tense sometimes, there was a lot of friction, but in the end, it let them save up enough to get a place of their own.

for a lot of people, tho, it works out great. especially when there are little kids w built in grandparents. i dont really see this as one of those "doom of civilizations" things.

[RKP5637]

4. I don't either see if as a "doom of civilizations" things. It works for some, but likely not for

others. From a survival perspective to me it makes sense. It's hard for a kid these days to be on their own, much less afford school, etc.

This society today is far different than when I was a kid, it's practically unaffordable to live in the US today in many/most areas. And the prices of things in stores is exorbitant. Every week in our grocery chain here the prices move upward. It's a given now. And then we have the phenomenal of "tiny houses." Developers must be lapping this up, low footprint on the land, and they can make zillions in real estate as the cost of "tiny houses' will rise on resale. And buyers will settle for less and less as prices rise.

[MillennialDem]

3. Millennial here who has her own house... work with a boomer colleague who has

two houses and had a huge undeveloped lot. They also have a lot in their retirement accounts (I don't work with the husband, just the wife) and they have two kids who live at home, one in her early 20s and the other in her late 20s.

Yeah I'm like "how the hell do you afford all that?"

I don't have any kids, though our earning potential is a bit down because my partner is still in school. But even after she's done I don't see how we'd ever have that much...

[RKP5637]

5. Sometimes there's generational income involved from family, etc. The wealth gap is so huge in this

country I'm surprised Americans are taking it like they are. One problem is the media is controlled in the US by a few people/corporations and MSM is often so biased in making it sound like it's someones fault they do not have tons of money. I really get so fed up with all of it.