Young Americans don’t care for home ownership

Do echo boomers have different attitudes towards home ownership than generations that came before them?

The lack of assets isn’t the only encumbrance to housing: Echo Boomers value education, people and leisure more than other American generations. Of the Echo Boomers I spoke with, 13% were homeowners, yet less than a third reported interest in owning a home someday (with female Echo Boomers wanting homes more than male Echo Boomers). They preferred graduate degrees, living in social areas (not suburbs) and freedom instead of homeownership. A few of these Echo Boomers will need a decade to pay off their student loans after which another large loan, like a mortgage, might lack appeal.

From Forbes.

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crabman
Guest

Goes to show why most people are bad investors! In 2006 everybody wanted to buy. Now that buying is cheaper than renting in much of the US they would rather rent.

Buy high, sell low!

patriotz
Member
"less than a third reported interest in owning a home someday (with female Echo Boomers wanting homes more than male Echo Boomers). They preferred graduate degrees, living in social areas (not suburbs) and freedom instead of homeownership." This is a false dichotomy and shows that Americans aren't getting the economic fundamentals of home ownership on the way down any more than they got it on the way up. If buying is more expensive than renting, you are going to give up something tangible in order to buy. If buying is cheaper than renting – as it is now in most US markets – you give up something tangible in order to rent. The one item they are right about of course is freedom, renting gives you more freedom than home ownership, and that's one reason why renting is supposed to… Read more »
registered
Member
registered

Not much value in a single ended analysis without a control group. Boomers don't have 'fun' places at their fingertips? No surprise, people in their 50's and 60's go out less. A valid analysis would compare answers across generations at the same age.

"Americans can learn to produce more with less. Americans can learn to value the things that come for free. Americans can learn to live with more people instead of fewer. And frankly, that’s what I see us Echo Boomers already doing."

The conclusion flatly contradicts the fun-loving, live for today, spendthrift nature argued in the article. At that age I already had the foundations of healthy RRSP socked away on low end wages.

Patiently Waiting
Member
Patiently Waiting
http://blogs.vancouversun.com/2011/12/15/police-s… Some insightful comments from a blog about the Jenny Vu murder: "YVRGOODTIMES says: December 20, 2011 at 2:11 am I don’t know Jenny or her husband so I wojump pretend to know all the facts. That said I won’t stick my head in the sand and pretend like this story sounds innocent. Jenny apparently was a ‘stay at home’ mom for the past years, spending her time at yoga; and her husband is a ‘businessman’. She apparently owned a home in Burnaby, and they bought $1.5 million dollars worth of real estate in one month. Credit is fairly cheap, but you would have to be earning quite the income to make those moves. Considering they were only on one income with 4 kids, the story tends to sound all too familiar. Pretty you’d girl; loves the good life. Enjoys… Read more »
jesse
Member

I'll try to dig up some data but I think the 25-35 home ownership rate increased over the past 30 years.

WhatProblem
Guest
WhatProblem

Great… A Nation of Renters.So I guess all these landlords are Saints and losing money every month because no one ever makes money in Real Estate right?

Tony
Guest
Tony

Thanks for responding to my previous post VHB!

McLovin
Guest
McLovin
More signs of HAM slowdown? Bloomberg reported on another indicator of China slowing down – its consumption of the world's best wines… Asian buyers have become unwilling to pay ever-higher auction records for First Growths such as Lafite, and they also balked at Bordeaux's ambitiously priced 2010 "en primeur" campaign. The benchmark Liv-ex 100 Fine Wine Index is down 11.4 percent this year. "It feels a lot more than that," Simon Staples, the Hong Kong-based head of sales and marketing at London wine broker Berry Bros & Rudd said in an interview. "Prices for some First Growths such as Lafite '08 have dropped off by more than 40 percent and haven't reached the bottom yet. Our clients are looking instead at Bordeaux Second Growths and the top 10 names in Burgundy." Last October, a case of 1982 Lafite-Rothschild sold at… Read more »
WFT?
Guest
WFT?

@WhatProblem:

IN America, where prices have fallen from the bubble peak, you can actually make a profit renting out a house that you buy today. Not so in Vancouver.

You should really be paying tuition to this blog.

jesse
Member

@jesse: Scratch that, it decreased: http://www.calculatedriskblog.com/2011/08/lawler-

US Homeownership by Age Group (Decennial Census)

1980 1990 2000 2010

15 to 24 years 22.1% 17.1% 17.9% 16.1%

25 to 34 years 51.6% 45.3% 45.6% 42.0%

35 to 44 years 71.2% 66.2% 66.2% 62.3%

45 to 54 years 77.0% 75.3% 74.9% 71.5%

55 to 64 years 77.6% 79.7% 79.8% 77.3%

65 years and over 70.1% 75.2% 78.1% 77.5%

Total 64.4% 64.2% 66.2% 65.1%

Alum
Guest
Alum

Given the current situation, rents have a clear direction. going UP !

Good luck renters. Wait to buy when prices are creeping up higher.

Another winning point for landlords

Anonymous
Guest
Anonymous

@WhatProblem: Thanks for continuing to stregthen the correlation between unintelligent/uninformed posts and Vancouver RE bullishness.

Jack
Guest
Jack

I know, real estate markets are local and "it's different in Vancouver", but…….

Home prices stall for second straight month

http://www.theprovince.com/business/Home+prices+s

jesse
Member

How about home ownership rates in Canada? http://www.theeconomicanalyst.com/sites/default/f

2011 census data aren't out but by all accounts home ownership rates are now higher across all age brackets. See? Canada is different!

M-
Member

@Alum: I'm sorry, but I don't understand… Could you explain your logic about rents clearly going up?

/dev/null
Member
/dev/null

@jesse: Remember that the 2011 "census" data isn't reliable (i.e. may have biases) thanks to our dear federal government. Unless the home-ownership question was on the short form, that is.

jesse
Member

@/dev/null: The 2011 census will have more margin of error but according to StatsCan officials will still have some reasonable degree of accuracy.

WFT?
Guest
WFT?

@Alum:

Sorry, but there is no data to suggest that prices are creeping higher or that rents are creeping higher. Someone below just posted a link to a story showing price declines for the second straight month (on a national basis).

patriotz
Member

@/dev/null:

Since all owner-occupiers complete the home owners grant application, the municipalities and provincial government can compute the home ownership rate quite accurately, but I don't know to what extent they do this or distribute the data.

WhatProblem
Guest
WhatProblem

So you guys have been saying the Crash is just around the corner for the last 5-6 years but you're geniuses everyone else who doesn't agree is an idiot?!….Too Funny. America is obviously the land of Milk and Honey to you guys..why not move there?

WFT?
Guest
WFT?

@WhatProblem:

You sound like a cry-baby.

Anonymous
Guest
Anonymous

@Alum: CPI numbers came out a couple days ago…the number was stable at 2.9%. Food was up and shelter (rents) were down.

Anonymous
Guest
Anonymous

@WhatProblem: I'd move to Cali in a second if they'd give me a green card.

WhatProblem
Guest
WhatProblem

Yeah..I'm the crybaby. How's "The Crash" working out for ya? Is it february now?…March?…Oh it's June now?…Ok It's obvious you guys will never Buy because prices will never be "Low enough"(See the United States) so I'm not sure why you expend so much energy on this quest. Seattle has had a pretty serious "correction"…Have rents decreased as well?…Doesn't look like it.
http://www.rentjungle.com/average-rent-in-seattle

registered
Member
registered

@24 WhatProblem:

Dear WhatProblem,

Thank you once again for yet another gift of insightful and concise analysis targeting the Vancouver housing market. Your continued use of American data without attempt to tie it locally demonstrates true mastery and confidence, laying to waste data showing real rent growth in Vancouver has been mostly negative for decades:

http://cuer.sauder.ubc.ca/cma/data/ResidentialRea

Your forthright determination and perseverance in the face of reality is a shining example for us all. Soldier on noble warrior,

Regards,

fixie guy

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