Dr. Housing Bubble 01/27/14

[Crewleader]

Living at home generation: a modern day feudalism awaits young Americans as the prospect of homeownership falls out of grasp.

The prospect of homeownership for many young Americans seems so far out of reach that many are resigned to be renters for the rest of their lives. In places like San Francisco and New York even those with decent paying jobs will find it hard to own a piece of real estate. Obviously many investors with easy money from the Fed realized this end-game and dove into the landlord business with all the gusto in the world. Wages are weak for the children of baby boomers. Many in fact are back living at home. Homeownership seems like a massive pipedream when many don’t even have the income to support a rental. Of course in California, you have odd inter-family dynamics where some kids are just waiting until the parents keel over so they can inherit the Prop 13 protected World War II built property. What more do people expect from a narrow focus on the present while ignoring the challenges facing a new generation of Americans? This structural change has also created a big hit on new home sales. Unfortunately for many a modern day system of debt serfdom awaits. For those that have the chance to buy, it may require a massive leap into debt on top of the student debt many already carry.


Living at home is in fashion

http://www.doctorhousingbubble.com/living-at-home-generation-young-renters-young-american-home-buyers/

[democratisphere]

1. Indentured slaves to the banks; cradle to grave!

How YOU likin' this New World Order????

[Crewleader]

3. Savings

[democratisphere]

5. Sums it up beautifully, Crewleader!

Thanks!

[Warpy]

2. I wouldn't say it's in fashion, but the shame has gone

Most of my Gen Y and Millennial friends are desperate to move out. They just can't afford it while they're paying crippling student loan debt on wages that would barely support them if they had no debt. The parents are eager to see them go, too, since they'd rather downsize and move somewhere warmer.

If wages aren't raised across the board for labor, we're heading for a revolution.

Let's hope it's a peaceful one.

[Crewleader]

4. Let's hope Warpy

Peace