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.

57 Comments
newest
oldest most voted
Inline Feedbacks
View all comments
Anonymous
Anonymous
8 years ago

@DEFAULT NAME: ….“If you are given notice because the landlord is selling make sure you get the second month’s rent free”

If you find a place and move in the first month they have to pay you the second months rent. That can help with moving expenses. It’s what I’ve done before in that situation…..

Except that it's illegal for the landlord to give you notice because they're selling.

Anonymous
Anonymous
8 years ago

"If you are given notice because the landlord is selling make sure you get the second month’s rent free"

If you find a place and move in the first month they have to pay you the second months rent. That can help with moving expenses. It's what I've done before in that situation.

Devore
Devore
8 years ago

Anyways, all landlords and tenants should be very familiar with the Act, and particularly the 'ending a tenancy' section. It's not too heavy on legalese, although you will have to reference some of the terms they use (like what is "periodic tenancy").

http://www.bclaws.ca/EPLibraries/bclaws_new/docum

Devore
Devore
8 years ago

@DEFAULT NAME: It's one of the wrinkles in selling a tenanted property in BC. If the buyers want it for personal use, they cannot begin the process until they have possession. If a lease is in effect, they cannot end tenancy until the lease is done. For this reason, this limits your market if you are selling a tenanted property, because it introduces challenges for the buyers who probably want to move in immediately after closing (they can't).

If, as a renter, you want more stability, make sure you always have a lease, and renew it early, so you know if the landlord intends to evict you at the end of it.

rp1
rp1
8 years ago
Anonymous
Anonymous
8 years ago

@local observer: ….@ hovering – if a landlord wants to get rid of a month-to-month tenant he(she) must have cause – continual late rent payment, illegal activities etc.- or, failing that, just wants to sell or have a relative occupy the space two different rules come into effect. In the former, thirty days notice is enough, in the latter two months notice is required – the second month being rent free. If you are given notice because the landlord is selling make sure you get the second month’s rent free – most landlords are reluctant to ensure that this rule is followed…… Nonsense! The lease does not break simply because the landlord is selling – that's not a legitimate reason for breaking a lease. The new owner has to assume the lease. If the new owner wants to move in,… Read more »

local observer
local observer
8 years ago

@ hovering – if a landlord wants to get rid of a month-to-month tenant he(she) must have cause – continual late rent payment, illegal activities etc.- or, failing that, just wants to sell or have a relative occupy the space two different rules come into effect. In the former, thirty days notice is enough, in the latter two months notice is required – the second month being rent free. If you are given notice because the landlord is selling make sure you get the second month's rent free – most landlords are reluctant to ensure that this rule is followed.

Devore
Devore
8 years ago

@Hovering: There is no standard form which allows a landlord to terminate a month-to-month tenancy without cause. There is a form where both parties agree to break a lease, but that's not what we're talking about here.

If you know your landlord wants you to leave for some reason, for some people that might be enough to start looking for a new place, and avoid future headaches and tensions, but there is no legal reason to leave.

Hovering
Hovering
8 years ago

sorry off topic again

the other day i asked the blog how a landlord could give notice to a tenant on a month to month lease where the rent was faithfully paid and the landlord was not moving in.

some thought i was a landlord trying to screw someone.

my bad.

actually i know of someone who was given notice to leave their rental in this situation and did. It seems to me they deserve damages of some sort but thought I'd ask around here first

i myself am happily renting for at least the next few years

thanks

paulb.
paulb.
8 years ago

New Listings 44

Price Changes 22

Sold Listings 88

http://www.laurenandpaul.ca

Anonymous
Anonymous
8 years ago

@WhatProblem: …Feel free to vote down this post as well. …

Glad to help.

patriotz
8 years ago

@WhatProblem:

"Sounds like you would spend whatever it takes to live in the City…."

Which is about the same as what it takes to own in Abbotsford.

WhatProblem
WhatProblem
8 years ago

I don't live in Metrotown just using it as an example.Sounds like you would spend whatever it takes to live in the City….just like many others.Imagine that.

DaMann
DaMann
8 years ago

@WhatProblem:

No offence but Metrotown is a shithole. I would never in a million years pay half a million for a condo in a place like that. Honestly, what's the point in living in the lower mainland if that's the case. May as well move cities for a fraction of the cost. Maybe some people like malls and faceless monolith neighbourhoods, to me they go against everything I enjoy about living in this city.

Anonymous
Anonymous
8 years ago

Here is a song for the season which I think all of you will enjoy. It is called "Economy Xmas (I Owe, I Owe, I Owe)" and sung by a Vancouver band.

http://radio3.cbc.ca/play/band/Jeremy-Fisher/Econ

WhatProblem
WhatProblem
8 years ago

@Default Name…Why drive a newer BMW when you can drive a 10 year old Corolla for way less? A $1000.00 a month for 30 years is $360,000..If someone chooses to spend more to have more space or more bedrooms why would you possibly care.When I was renting I bought more Starbucks more Take-out.. now I don't.I will agree and say Vancouver has some crazy prices but a $900,000 place in Vancouver costs $400,000 by Metrotown and I for one see little difference in lifestyle when you could be down at Kits beach in 20 Minutes.$400,000 Mortgage over 30 years at 2.25% is $1600.00 a month.Yes yes Strata tacks on a couple more hundred bucks a month and property taxes are $2000.00 a year but I still seem to have as much extra cash as I ever did.Feel free to vote… Read more »

Anonymous
Anonymous
8 years ago

@WhatProblem: why should people buy in a flat market when it costs more to own that rent?

jesse
8 years ago

And speaking of population statistics: http://www.bcstats.gov.bc.ca/pubs/pop/pop113h.pdf

trash crash alert
trash crash alert
8 years ago

One major key component for real estate price level is the cost of money. The cost of money has been steadily declining for almost 30 years. A year ago, best 5 year closed mortgages going for 3.75%, now it is 3.25%. That is a huge drop in the cost of money to support the price level. The question is, will 5 year mortgage rates continue to fall in 2012?

Over the last few months, there has been a dramatic increase in short-term mortgage rates which is the first major dagger in the heart of this market. Even if rates stay steady, this will be the death knell as consumers can't refi at lower rates from the year previous – be the first time in 3 decades.

jesse
8 years ago

@fixie guy: And slight correction: rents in Vancouver City increasing just under 3%. 2010 they increased just over 3%. This is still above inflation.

Region-wide rents are increasing at a pace slower than inflation.

jesse
8 years ago
fixie guy
fixie guy
8 years ago

33 jesse Says:"Yes but… rents in Vancouver proper are increasing faster than inflation, just above 3% or so."

Data? Your link doesn't appear to mention rents anywhere. Why is Sauder wrong?

Anonymouse
Anonymouse
8 years ago

@YLTN @ Work:

"If $160/month in tolls is too much for a family to absorb with their mortgage"

It could be $320/month if both members of the household are crossing the bridge each day. That's not an insignificant amount of money to try and eliminate from a family budget. Personally I'd rather buy somewhere in a better area and put that $320 towards a mortgage than waste it on transport, especially if public transit isn't a viable option.

jesse
8 years ago

@DEFAULT NAMEe: Yes but… rents in Vancouver proper are increasing faster than inflation, just above 3% or so. This is roughly in-line with a drop in completions. In other words dwelling formation compared to housing supply formation is tighter. This will most likely change in 2012 as completions start increasing again. (Starts are increasing now.)

http://housing-analysis.blogspot.com/2011/10/augu

The real stat to watch is population growth. The data I have are lagging by about 4 months unfortunately but if 2011 continues to see lackluster population growth, 2012 will be all the more difficult for sellers in addition to what is looking like a tighter credit environment.