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re: What do you think is causing the housing slump?
Posted on 6/5/19 at 9:39 am to DeltaHog
Posted on 6/5/19 at 9:39 am to DeltaHog
quote:The US had a $14 Trillion economy during the worst part of the last recession, and you can't figure out a way to extract, say, $50k-$100k per yr out of it? That's 0.000000007% if you like percentages.
If the weak US economic recovery hindered prosperity for those entering the workforce at the time of the economic collapse would those people not be considered victims of a poor economy and recovery?
Shitty economies happen to every generation. The next recession has all the macro signs of being worse than the last, BTW. Prepare your anus, Generation Z.
0
Posted on 6/5/19 at 9:40 am to Geauxgurt
quote:
Well the market is still overpriced and people are in general less willing to take on risks. Add in that student debt has gone through the roof because people were naive and stupid when taking on those loans and you get the current environment.
And, can I point out that while the people pointing out current student debt are definitely correct that it affects economic decisions, people need to stop acting like this shite was imposed on people or something.
People in the 70s and early 80s didn't have student debt largely because A LOT fewer of them went to college!
And before someone says, "well that's cause you could get a decent job without a degree", might I point out that you have the cart before the horse.
Our genius govt decided throwing money around willy nilly to let basically ANYONE with a pulse go to college was genius. The argument was, "people with degrees make more" which, typical of govt, reflected the ignorance that this was because people with degrees were MORE RARE!
Basically, the govt created a massive debt crisis by throwing this money around and simultaneously, completely watered down the value of the thing they were funding by making it NOT rare.
And, on this front, I'd have tons of sympathy with younger folks if THEY would recognize this problem but nooooooo! If you suggest reducing federal subsidization of higher education in the form of loans........young people will basically threaten to burn the place to the ground.
I'm not going to sympathize with your house being on fire if you demanding more gasoline to throw on it!
Posted on 6/5/19 at 9:40 am to BulldogXero
quote:This is not unique to millennials. I paid off 138,000k over ten years from 2000-2010 after deferring 4 years while in post grad.
did they graduate with debt that would take 10 years to pay off?
Posted on 6/5/19 at 9:41 am to Jake88
quote:
Also, compare the mortgage interest rates of the late 1970s to those around 2010-2015.
Oh. I know.
Basically, if one is seriously going to argue that economic drivers are the primary reason for lower ownership, then the late 70s were on giant fricking stinker. Hell, my parents bought a home in the early 80s at around 13%!
Posted on 6/5/19 at 9:41 am to trinidadtiger
quote:
What do you think is causing the housing slump?
Prices way too high.
Posted on 6/5/19 at 9:42 am to BulldogXero
quote:
I don't know that much about the 1970s. Job prospects may have been worse, but was the cost of living really as high? And for those who were able to attend college, did they graduate with debt that would take 10 years to pay off?
See my later post a few up
Posted on 6/5/19 at 9:42 am to trinidadtiger
The fact that the federal highway system has been underfunded by like $1T over the last 30 years has had a lot to do with it (this means commute times are like 3x as long as they were 30 years ago meaning people want to live a lot closer to where they work which is creating a housing shortage)
This post was edited on 6/5/19 at 9:43 am
Posted on 6/5/19 at 9:42 am to TigerFanInSouthland
quote:
Y’all motherfrickers sure do like to generalize about an entire age group
And you frickers sure do take offense about things that a large portion of your age group has done and is doing.
Sure not EVERY one of you do that, but a large portion of you do.
Posted on 6/5/19 at 9:44 am to boogiewoogie1978
quote:Depends on where you are. In my area, Mandeville/Madisonville, La. new construction seems to be keeping my home's value from growing as I had hoped.
Prices way too high.
Posted on 6/5/19 at 9:45 am to trinidadtiger
quote:
Maybe this generation is more "Italian" in nature, where they are perfectly fine, as are their peers and the people they date, with living at home til 30, having mom cook their meals, and spending their money on cars, clothes, and dating.
Im 58 and my parents instilled upon me once I got out of school to buy a home, maybe the culture has changed.
My point is, maybe it has as much to do with culture as it does affordability, and the fed reducing rates isnt going to fix it.
It's 95% cost, maybe 5% culture.
Posted on 6/5/19 at 9:46 am to Jake88
quote:
This is not unique to millennials. I paid off 138,000k over ten years from 2000-2010 after deferring 4 years while in post grad.
And this is just a standard 4 year degree?
Posted on 6/5/19 at 9:46 am to Jake88
quote:
Also, compare the mortgage interest rates of the late 1970s to those around 2010-2015.
I'll add just so people get a real feel for this.
The average mortgage in 1979 went at 11.2%. On a 150K home, that's a mortgage of $1,451
Right now, the average rate is 4.54%.
At that rate, you can buy a $285K home for the 1979 payment!
And I'm being kind because for the last several years, the rate has been LOWER than 4.54%
This post was edited on 6/5/19 at 9:48 am
Posted on 6/5/19 at 9:46 am to ShortyRob
quote:
Actually, 70s was a crack before my homeowner time. I graduated in 85. So, nice try. Stop being lazy in your argument. The late 70s was definitively a worse economy.........BY FAR.........than anything you've lived through. It's not even really close
Lazy in my argument? I defended the fact that millennials were victims of a weak economy and recovery when entering the workforce. I never mentioned the 70s one time during any of my post. I never compared or even bitched about my own situation or others. I even said I don’t defend a large portion of my generation that do blame others for their standard of living.
My only argument Is how you come to bitch and complain about millennials bitching and complaining. And then you bring up how bad it was for everyone in 70s...pretty much echoing exactly what millennials today are preaching.
Posted on 6/5/19 at 9:48 am to DeltaHog
Here is one cause, the high price of autombiles which you have to have is contributing to slow housing market. It is one of a few things.
Posted on 6/5/19 at 9:49 am to ShortyRob
quote:
I'll add just so people get a real feel for this. The average mortgage in 1979 went at 11.2%. On a 150K home, that's a mortgage of $1,451 Right now, the average rate is 4.54%. At that rate, you can buy a $285K home for the 1979 payment! And I'm being kind because for the last several years, the rate has been LOWER than 4.54%
And salaries are 3 times higher than in 1979
Posted on 6/5/19 at 9:50 am to Loserman
quote:
And salaries are 3 times higher than in 1979
$100,000 in 2019 has the same purchasing power as $25,943 in 1979.
3x higher with way less purchasing power
This post was edited on 6/5/19 at 9:51 am
Posted on 6/5/19 at 9:51 am to bmy
quote:
Boomers arent retiring and millenials are making less because of it
Jesus
Posted on 6/5/19 at 9:52 am to DeltaHog
quote:Yes
Lazy in my argument? I
quote:
I defended the fact that millennials were victims of a weak economy and recovery when entering the workforce. I never mentioned the 70s one time during any of my post
You argued that lower ownership was due to a poor economy. Hence, if your argument was correct, ownership should have been even WORSE in the late 70s early 80s.
But it wasn't.
quote:
My only argument Is how you come to bitch and complain about millennials bitching and complaining. And then you bring up how bad it was for everyone in 70s...pretty much echoing exactly what millennials today are preaching.
It wasn't a complaint. It was a factual observation that if your assertion were true, then it should have been true THEN too. But, it wasn't.
It's not an old timer vs young person thing. The POINT is, CLEARLY, economic drivers aren't the reason because if they were, then BOTH the 70s and now would have stunk with the 70s stinking WORSE.
Bottom line. You can't fix a problem until you correctly diagnose it. That said, I'm not even 100% sure there's a problem.
I agree with someone else in the thread who said that young people on the whole prefer a different lifestyle to the one people pushed as I was growing up. And, I make ZERO value judgements on that. In fact, I think there's an argument to be made in FAVOR of the preference current young people have.
THAT is why you are being lazy. You just assume my opinion is shaded by my age. But frankly, I think on some fronts, young people's preferences are BETTER in this area.
Posted on 6/5/19 at 9:53 am to BulldogXero
quote:No. But taking on that much for a four year undergrad degree is a choice made by an individual. You will not owe 138,000K going to LSU, Alabama, A&M, MSU, etc. as an instate student.
And this is just a standard 4 year degree?
Posted on 6/5/19 at 9:53 am to Loserman
quote:
And salaries are 3 times higher than in 1979
Adjusting for inflation, home prices have risen faster than incomes
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