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Monday, August 17, 2015

Buying...Renting: Americans are putting off Home Ownership.

http://adambraun.com/social-consciousness/
http://adambraun.com/social-consciousness/
Ever since our last Real Estate fall out, the latest generation, The "Millennials" are delaying home owner ship by a few years.  This sounds great right...the new generation of money makers have learned a lesson and are now saving.  Well, that is not necessarily the case.  
Yes, many people want to be able to move where a new job opportunity presents its self but to many people are doing the same thing. As a result there are not enough rental units for this generations mentality.  As a result, residential rentals have gone up drastically. Not only does this make it difficult to live, pay bills and build a career, but now they are paying to high of a percentage of their income just to live.  That means they can not save enough to put a down payment on a home or condo.  
The share of the U.S. population who own homes has slid to 63.4 percent, a 48-year low, according to the Census Bureau.
In the 70's a starter home was 1.7 times income, today first-time home buyers are paying a median price of $140,238, which is nearly 2.6 times their income.  
The Millennials that would like to purchase a home are finding it difficult to save for the down payment and then qualifying for a mortgage.  
Currently 46 percent of renters ages 25 to 34  spend over 30 percent of their incomes on rent, up from 40 percent a decade earlier, according to a report by Harvard University's Joint Center of Housing Studies. (The housing industry generally regards a figure above 30 percent as financially burdensome.)
While most people would like to own, they must now delay until they can feel stable with a job, have enough for a down-payment, and a savings.  This in turn keeps the younger generation from attaching and becoming a part of the community.
Time will tell what will happen to the Millennials but the real estate market is hot.  It may not be ideal for the renters out there but it is a great investment.
For assistance with a property tax appeal, please contact us at www.PTAGflorida.com
To read more about this subject, please reference the an AP story through: http://www.floridarealtors.org/