US millennials will not 'save the housing market' due to debt

Despite the notion that the 2.3 million adults living with their parents are saving money for a property, a new survey shows that 50% of millennials have less than $1,000 of savings, in addition to being burdened with student debt. Foreign money, investor dominance and high prices for properties in desirable areas are contributing to what this commentator calls ‘rental Armageddon,’ concluding that millennials are in no position to save the housing market. 





doctorhousingbubble.com / Dec 12, 2015

Contrary to anecdotal Taco Tuesday baby boomer nonsense, Millennials are not in any position to save the housing market. Millennials have differing priorities some based on generational trends but some being driven by economic necessity. The vast majority of the $1.3 trillion in student debt is being carried by younger Americans, not older baby boomers who went to college when state schools were nearly free and private institutions were dirt cheap that you could work at a fast food joint and pay for your annual tuition. It was also a time when buying a home wasn’t some giant global speculative gamble. Today we have markets where investors dominate, foreign money is king, and flippers are house humping their way into leased cars and plastic surgery. In California, 2.3 million adults live with their parents. As things improved, some went out and formed new households as renters. Some pundits think that many of these people were saving big bucks living at home with their parents but the latest survey shows the exact opposite. 50 percent of Millennials have less than $1,000 in savings. And these are the people that will buy $700,000 crap shacks that were built during the Great Depression?

Millennials will not save housing

Millennials are not going to save the housing market. Will they buy homes in other parts of the country where the typical home costs something like $230,000? Maybe. But that is a stretch for someone that is barely scraping buy. That is why we are facing rental Armageddon. But in areas where prices are looking very frothy, Millennials have no chance whatsoever to compete against investors and all cashforeign money. The few that have a chance to compete are high earning professionals that still need to leverage into giant mortgages. The idea that these adults are living at home with Taco Tuesday parents to save hundreds of thousands of dollars goes against actual data.

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Source: http://silveristhenew.com/2015/12/12/millennials-will-not-save-the-housing-market-50-percent-of-millennials-have-less-than-1000-in-savings-a-large-number-are-mired-in-student-debt/