Why Aren't Millennials Buying Houses?
Cuz they are young and therefore mostly poor.
Also checked.
Stop making excuses and cherry-picking.
Too busy subsidizing boomers' mortgage interest to shlomo, el salvador's EBT, chiquita's clutch, and locking money away into the s&p 500 for 40 years like the money show tells me to. I'm doing my part. What do you want?
Nope they're 30 now gen z is young
>Trying to make a life in California
There's literally no reason to settle down in California. If you make a shitload of money, they'll steal all of your money in taxes. If you buy a house, you'll pay 10x more than it's actually worth. If you're poor, you literally can't make a decent life for yourself because everything is overpriced. If you go to an "affordable" area, you'll have to walk around with your head on a swivel and pray you don't get raped, stabbed, robbed, or jumped by Jamal or Jose.
But hey, how about that great California weather? lmao.
>900 sq ft
I could have a literal mansion in the midwest for that amount of money
yea but then you'd have to live in the midwest
God forbid i have to live in a 90 percent white state instead of cuckfornia
quit living in retarded areas you can get a 3000sqft in the suburbs here with a newer model home for 200k
hey if it works for you, that's great. for me, it's horrible
The housing bubble is looking to correct. I want to buy low.
What you do put in your time, say 10 years or so living in a shithole lib city making 200-300k then retire in your 30s in some rural area with no state income tax and low property tax.
DESU this is the way to do it and it makes your appreciate the simple things.
cant wait for bag holders to get fucked on properties like this
It feels like 2006-2007 all over again doesn't it?
I'm not sure what exactly is propping these prices up, is it the west coast tech bubble doing it? Or is it boomer house flippers who keep flipping the hot potato until someone gets left holding the bag?
I just don't understand who the fuck would buy a house like that at that price with the end goal of living in it themselves.
Is that supposed to be a good example? Something like that would be $300,000 at MOST here in Texas, and that's a high estimate that assumes that the area that house is in is some white people paradise
Several factors. Unlike 2008, this is not fueled by easy money from loose lending standard.
Immigration. Both legal and illegal. All of them requires housing.
The vast majority of the US economy is now service based. All you need for that are office spaces. So all of them are now concentrated in large cities, where it has the biggest talent pool to hire from.
Combine the two above, you have immigrants on H1B visa pouring into the cities, where the majority of the jobs are now focused, and you end up with extremely high housing price.
I think we are past the point of no return. It is unlikely that property prices in cities will ever be affordable again.
Imagine being a high school dropout who sleep-walks through life, takes a random well-paying job at the local factory, buys a $20,000 house and pays off the mortgage in five years, and retires with a net worth of $5,000,000 just from that house. Just imagine.
Because we live in late state capitalism.
If there's another dot com crash it might reverse the trend. There have already been several hiccups for the FAANG companies last year, so we might have started crashing already.
What's your short positions?
Millineals need to increase the supply of cities in burgerland instead of buying from boomers
OP's joke was the house being expensive
I don't think I will ever move out of my mother's house any time soon. All I've done now is carry on making pre-payments on the home mortgage. It really hurts when you can't afford to move out and most of your friends are still living at home.
this. mass immigration. its not good for the economy. imfrastructure can not keep up
you fat retards would move there in a second if the US collapsed. Those red hats are far too tight user.
>being this bigoted against undocumented americans trying to partake in the american dream
Many experts have concluded that house prices are driven by the availability of credit - the number of loans, and the size of loans, and the rate of new loans being written. When more people have more money in the form of bigger loans, and more people with loans to compete for something, it pushes the prices up.
housing has become financialized and treated like a speculative asset, rather than a place to live, or commodity you consume - ie live in... and much like 2006 and 2007 repeated, the market has become an asset bubble
What underlies bubbles is psychology, people see gains are to be had, and people want to dive in - think of the crypto bubble - it's psychology of fomo.
Cheap and easy money - interest rates were lowered to "emergency" levels in 2008, and have barely risen since. That means repayments are cheap, meaning more people qualify for larger loans.
Banks and bankers are incentivized on multiple fronts to write as large a loan as possible, to as many people as possible - the guy in the suit has KPI targets linking size and number of loans to his salary bonus. At a bank ownership/stockholder level, because of capital adequacy rules, housing is treated as the safest weighted asset class, so banks can have a larger portfolio of these assets on their books - mortgaged residential properties with a safe return - interest repayments from borrowers.
Banks create money when writing a loan. Banks today don't hold your cash as a deposit in a vault. Today when someone buys a house, an asset is written on the books - the loan, and then funds are paid out to the previous owner's bank - which appear as a credit - more numbers on a screen, in the seller's bank account. The books have expanded without any physical money changing hands - money was created. The actual funds to underpin this transaction are found later through money markets after the fact.
China - the chinese are net savers, and consider housing to be a safe haven asset for their savings, especially housing in foreign countries where their government couldn't easily. In addition to that, chinese banks are also creating money to lend, in a debt fuelled bubble to try and deliver returns and economic growth under the Chinese government's direction.
Many borrowers have figured out a game where they can remove this created chinese money from the country, and purchase housing assets in other foreign cities like LA and SF, but also countries around the world including Canada, Australia, the UK, Hong Kong
Governments incentivizing ownership and a "wealth effect." Public/private housing mortgage guarantee corporations like Fanny Mae and Freddie Mac guaranteed loans in the early 2000s to "help" poorer borrowers get loans at lower interest rates than they could otherwise. We all saw what happened post 2008 after borrowers started defaulting, these corporations had to be rescued.
In Australia and the UK, there are tax incentives to encourage "investment" - buying multiple homes as a form of financial investment to rent.
Generally seeing housing as a form of asset, and not a place to live.
why the fuck would the US collapsing make someone want to move to California you fucking absolute retard
All true. This is why I really think loans / credit for purchases depreciating assets (yes, houses are depreciating, they only increase in value due to inflation or increase in credit availability) shouldn't exist, as they don't increase economic production in any way. Especially for assets which are primarily valued based on scarcity and not because they are used to produce anything. The availability of mortgages for example does zero to make houses more affordable for people. It just jacks up the price of houses. The world would be far better off without mortgages because houses would be 1/10th the cost and no one would have to pay bankers interest (payment to people who do nothing productive).
And boomers wonder why we are mad at them
I haven't bought a house because I want to short the boomers. I'm buying their bags from them at the bottom.
>not fueled by easy money
>federal funds rate and global interest rates generally at the lowest level in all of recorded human history
Uhh
This is happening in the Southeast, right now. SC, GA and AL coastal areas are getting flooded with Boomers from the Northeast.
And none of which are easily accessible by the average joe blow, due to the strict underwriting standard. High interest means jack shit when mortgages are approved to anyone vaguely resembling a human.
I’m not saying it’s the only factor, but people who already had assets that got boosted by low rates are contributing to driving prices up by buying more assets in the form of real estate.
It's like buying LINK for less than a 30 cents. Then the singularity hits and every no linker/millenial will regret it
Must be annoying dealing with them. American Democrats are like locusts.
>millenials
>buying anything at all
The economy is fucked you retard. My zoomer ass knows the US will go through civil war in the near future due to a number of reasons
>race tensions
>automation and AI putting people out of a job
>the demographic time bomb
>political extremism rising
Good luck making it to 2030 before the US bursts into flames you monkeys
Lazy fucks are afraid of grass and wrenches
Negative interest rates are up next to resolve this. Not sure what'll be next after that.
To add onto this. 36% of the us economy is service based. Truck drivers, cashier's, and customer service reps. All of which are facing automation. You know what happens when truck drivers, making $50k a year are out of the job? Cashiers n service reps making 20k - 30k a year. Truck drivers no longer spreading their money throughout the us with their needs for restrooms, products and services.
Just think about that.
this, economy is facing a massive shitshow soon.
millennials are buying cheap chink shit IF even that.
local businesses are so fucked in the next 3 years.
the fed will run out of tools (interest rate cuts and QE or buying assets) to solve the next bubble bursting, and the US will probably be looking at decades of lost growth like Japan after its real estate crash in 1990
So what is it now? Do immigrants steal our well paid jobs or do they sleeze away from our social securities and rape our women?
excuse me but the assumption of infinite growth means that economists can never be wrong and you are dumb for thinking that there might be human costs to our wonderful achievements
we will grow our way out
Who would be so stupid to willingly go into debt to finance a house with such shit pay in the market?
You would be working ten years+ and still had not paid it off.
Not to mention the fact that once you bought in, you risk losing 80%+ of your investment permanently (Buying the top).
oh no, it's "good" for the economy in the short term (which is of marginal benefit to you) but absolute SHIT for quality of life in the long term.
that's the big bait & switch they pull on you -- a conflation of "economy" being synonomous with "quality of life"
The weather is unironically great, and the beautiful women everywhere are a real nice free boost of testosterone.
But rent payments are a fucking nightmare, and living with my parents is terrible.
This is what life was like for literal baby boomers, and they have the nerve to complain about millennials.
>automation and AI putting people out of a job
AI is still very dumb. We're nowhere near automating jobs beyond very specific tasks. Until we develop some new form of computing technology (like organic computers), AI would remain mostly a novelty.
>Generally seeing housing as a form of asset, and not a place to live.
This. And shit will be fucked for as long as this continues. Honestly, I'm never buying until I can get the exact house I want.
>inb4 rent to Goldberg
idgaf, if I don't like the situation I leave and they're left holding the bag.
>we will grow our way out
But they unironically believe that.
The real world quality of life impact though will be negligible.
I would love to see the average and median ROI of Chinese investors versus the rest of the world
Just as a hunch they speculate way too much and overpay for everything
.
We couldn't do it though because raysis
Ok, I've seen this line too much already, it needs to be added:
>How can I get an Asian qtpie like this?
>Is marriage a good investment?
>Imagine the smell
>If you don't have 500k by age 21, you are never going to make it
>How much for a girl like this?
>Why aren't millennials buying houses
braaappp
Surely this data exists for other countries
China would just fake their numbers though
>China would just fake their numbers though
Exactly.
Shit, they just lie and flood everything. Look at education. Supposedly they have some of the best scores and outcomes in the world.
Then you try to teach them irl.
They are literally a hive with a few kings at the top making decisions.
Why are mobile homes so shit tier?
Homes are so expensive, because in a world where everything is made by machines, be it your watch or your kraft dinner, hikes are one of the few things made by hand. The obvious solution is take the auto assembly line and turn it into something people can live in
But instead of mobile homes being something young people live in before they can afford a home, young people split on one bedroom apartments.
Why aren't they making better mobile homes?
cause young people are still living in/near cities and need land and land is expensive
yeah shit quality of life because mixing cultures doesn't work. multiculturalism is a fairy tale that boomers cling to.
stop beating around the bush
>Buying a house when you could buy a business.
Sage this
>Until we develop some new form of computing technology (like organic computers), AI would remain mostly a novelty.
Not true. At all. A good chunk of the shit you buy from a grocery store is manufactured completely by automation. I work in the auto industry and the automating technology for cars is 90% complete, it's just there are legal and insurance problems that emerge from shifting the driving responsibility from a human to a machine
>Immigration. Both legal and illegal. All of them requires housing.
How do you buy property as an illegal alien? What's the total surplus in population excluding native births? You do realize emigration also exists, although at a lower rate than immigration?
>The vast majority of the US economy is now service based. All you need for that are office spaces. So all of them are now concentrated in large cities, where it has the biggest talent pool to hire from.
What's 'vast majority'...? A service industry could be physically space demanding or not, different case by case.
>Combine the two above, you have immigrants on H1B visa pouring into the cities, where the majority of the jobs are now focused, and you end up with extremely high housing price.
Congress set a mandatory cap of 65,000 for h1b visas in 2019. There are ten times as many more college graduates entering the job market each year. So how is that number of lower-middle class immigrants going to fuck up the housing market...? Trumpers are so stupid...
Yes.
>buying a house at the housing market top
>instead of buying LTC at the LTC bottom
COPE, you bagholding retard. Boomers are going to die off and they didn't have kids. China already has 50 MILLION empty homes. Houses aren't going to be worth jack shit beyond their utility value in a few years.
>talking about utility value
>directly after shilling litecoin
It's a simple issue really
>Population explodes
>Private builders don't want to build cheap shoeboxes, just luxury apartments
>Government bankrupt so zero social crack dens
>Employers hodl property folios so have zero interest in raising wages or lowering rent
Enjoy hell zoomers
>How do you buy property as an illegal alien?
You can't be this dumb
>says right in the listing that the lot is zoned for multiple units
it's a little more complicated in this case than "wow. many berries for small cave"
Oh fuck off no way
Everything becomes cheaper.
And the US can't get shittier overall than it already is.
Americans are idiots. Most low IQ population in the planet.
Collapse
yes this is unlike 2008
it's bigger
the crash will be harder
think 40 years price rollback
When?
>muh housing bubble
>muh uaffordability
ITT: Retads
you're probably not living in the US. From Europe it looks like a nice cheap house. In reality it's located in one of the most dangerous hood in the US. There is a reason it's that cheap.
>youngstown
the meth capital of america. sounds like a great place to live around all the meth'd up white trash.
>neighbor across the street is literally an old white lady hanging flowers
yea real dangerous user
No that's Missouri.
wtf im gonna live in a shithole now
I'm not going to question your knowledge on AI but it is used in all of the Google search engine which does the best job (although it does track the shit out of you). Every major company uses it for logistics, most mining companies use image recognition on their equipment to judge wear and they use it on the rocks to judge metal content and guess what: image recognition uses neural networks which is AI.
It may not be at the "front" of the industry right now but it is certainly being used and saving companies millions. It is cutting things like annual maintenance on machines down and is cutting down time on machines because they are being constantly monitored and people know when they will break. This stuff is difficult to measure.
AI is used everywhere and you need to understand that
>AI
>Just if/then statements
>AI
I left sodom and Gomorrah last year it just got to the point where you can’t walk in the streets without smelling piss everywhere and getting looks from spics and niggers all because you’re white not to mention the women are literally the sluttiest of the sluts
Moved to Utah and haven’t had problems ever again
I'm not saying that immigration is bad. There are upsides to it. But this is one of the consequences of increasing population on an limited area of land. Increased housing cost in those areas.
I'm a landlord myself, in one of the biggest cities in the US. So I'm benefiting from it. My real estate friends are also making banks from this. So are many employers, who now have access to lower cost labor.
There are many ways to solve this problem, without directly cutting off all immigration. But I don't ever see this being solved, because there are simply too much money involved.
>In a few years
Keep renting for 30-50years like a good goy
Never. But somehow zoomers have to cope, because they are poor as fuck and are looking forward to any doomsday chance
Have you been huffing paint? No one would want to be in California if things collapsed. The food stamp riots would burn down the cities.
I saw that house on flip or flip
They bought it for $270k and fixed it up. Kek
You'll never own a house, zoomies. Go get your shine box