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Related: About this forumDr. Housing Bubble 11/30/14
The kids arent alright: A record percentage of young adults live with older Americans. The trend continues to renting.Higher home values for the sake of higher prices is not necessarily a good thing if future generations of Americans are being priced out of the market. There seems to be this movement that simply ignores the glaring plight of many Americans regarding stagnant incomes and the reality that we have gained 7 million renting households while facing a similar number in completed foreclosures since the Great Recession hit. The system in terms of organic supply and demand was artificially stunted as foreclosures lagged and banks auctioned off swaths of properties to large investors. With this trend backing off we are now left with higher prices but most regular families being priced out. In California you have over 2.3 million adults living with other adults because of financial challenges. Housing is an illiquid asset. At any point, you can buy a share of Google or Apple stock and sell it back practically in the same day. Not so for housing. At any given point only a short supply of total housing is on the market. Currently housing is priced for investors and not your typical family. Forget about younger Americans that are saddled with large levels of student debt and have lower incomes. When it comes to housing, the kids arent alright.
Highest percentage of young adults living at home
We currently have an incredibly high number of young adults living at home. This isnt some new found appreciation for mom and dad. During the early 2000s the young did have a desire to buy. They bought with toxic mortgages and leveraged every cent they had into real estate. And when the crash hit, much of that reversed. Today, many would like to buy but simply cannot because of household wages. The FHFA is likely going to loosen lending standards but incomes will still be verified.
This trend of adults living with adults is big:
http://www.doctorhousingbubble.com/young-americans-renting-first-time-buying-adults-living-with-parents/#more-7834
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Dr. Housing Bubble 11/30/14 (Original Post)
Crewleader
Dec 2014
OP
Warpy
(112,817 posts)1. No, the kids aren't all right, and neither are most of their parents.
Costs keep rising every single year but wages either haven't risen in absolute terms or have even declined, depending on what the job is.
99% of the working public are being systematically robbed every year they stay in the workforce. Kids who can't leave home are just one symptom. Pent up demand with a record number of empty houses is another symptom.
Something has to give and it can no longer be labor.
Crewleader
(17,005 posts)2. Well said Warpy!