It used to be that most parents would provide their kids with food and shelter until they left high school. Some would stick around home while attending higher education, but most would move out on their own and start taking responsibility for themselves.
Then a funny thing happened in the economy. Stuff changed. Incomes declined while the cost of living went up.
For the first time in modern history 18-34 year olds in the US are more likely living with their parents than on their own, with roommates or with a romantic partner.
A big reason is a decline in economic opportunities. As the cost of living has escalated and wages have stagnated, young people face mounting student debt and daunting barriers to renting or owning a home, creating obstacles to cohabitation and marriage.
The trend is led by young men, whose fortunes have been declining since the 1960s. While they have always lived with their parents in greater numbers than young women, this setup became the dominant living arrangement for them in 2009. In 2014 35 percent of young men lived with parents, while only 28 percent lived with a spouse or partner (for young women, the percentages are flipped: 29 and 35, respectively).
read the full article here.
It’s the end of another week and that means it’s Friday Free-for-all time!
This is our regular end of the week news round up and open topic discussion thread for the weekend. Here are a few recent links to kick off the chat:
–Ignorance not bliss?
–Conrad Black, renter
–Not a good renter
–500 imaginary sq. feet
–Fed keeps rate steady
–How FTBs are doing it
So what are you seeing out there? Post your news links, thoughts and anecdotes here and have an excellent weekend!
The Globe and Mail has an article about shifting perceptions on home ownership in Canada.
Based on a very small sample size, they are predicting that young people in Canada are becoming less willing and able to buy property.
“Last year, in a class of 29 students, a clear majority said they would buy,” Prof. Harris wrote me in an e-mail. “I was surprised because I had spent a lot of time speaking about the dangers of price bubbles, and about the opinion of most experts that the markets in many Canadian cities had moved, or were moving, into bubble territory.”
This year, only five of 23 said they’d buy and 18 chose to rent. “Although the assignment was the same and the content of my lectures pretty much the same, the pattern of response was very different,” Prof. Harris wrote.
Its certainly not what you’d call a wide ranging survey, so what do you think? Are attitudes towards home ownership changing in Canada or do all the kids still want real estate?
Pacifica Partners has released a new report on the housing market and there’s a write up over at the Globe and Mail.
Anyone still think the housing market’s going to snap back from the weakening trend that has taken hold in the past couple of months? It’s not, so act accordingly. Adjusting our expectations about housing won’t be easy because we’ve seen prices rise dramatically. Canadian Real Estate Association numbers show an average annual price gain of 7.7 per cent over the past 10 years on a national basis.
Aman Bhangu, Pacifica’s vice-president of research, said real estate has performed a lot like stocks did before the twin stock market crashes of the past decade. “At the end of the 1980s and 1990s, you had that mantra of ‘buy and hold, stock markets always go up, just get in there.’ It’s likewise with real estate – ‘real estate always goes up.’”
Mr. Bhangu said that taking a fresh look at the fundamentals supporting the real estate sector suggests prices are overvalued today by one-third, while other estimates call for a price decline of 10 to 25 per cent from current levels. Forecasts like these are educated guesses, whereas the demographic impact on housing is rooted in basic numbers.
It’s worth reading both the original report in full, there’s lots of interesting graphs there.
The middle class in Vancouver is shrinking.
A widening gulf between the rich and the poor makes for a marked shift in demographics over the last 40 years.
And there’s a fascinating difference between Toronto and Vancouver when it comes to distribution of these two classes:
In Toronto high income residents have centered around transit hubs, while in Vancouver the opposite has happened and poverty has spread along the skytrain line.
And numbers from 2010 income tax returns that Ley received this week show accelerated polarization between rich and poor, especially in the Downtown Eastside.
Vancouver’s experience is opposite of Toronto when it comes to transit, Ley said, as high income residents concentrate around transit in Hogtown.
It’s a phenomenon Martin Wyant, CEO of Tri-Cities social services organization the Share Society, can see simply by looking at the increase of residents that need Share’s food bank – a 59 per cent rise since 2007.
In the suburbs, new condo developments hide the poverty, he said, but most people are forced to commute for higher paying jobs.
I guess the question is this: will the recent push to build and sell condo towers at transit hubs shift this trend up or down?