Millennials happy about housing

From CNBC:

Millennials drive housing confidence higher, despite red-hot prices

Both buyers and sellers alike are feeling very good about the housing market this spring, even as home values hit new highs and mortgage rates move up.

A monthly sentiment index from Fannie Mae rose to the highest level since 2011, when the survey began, thanks to a surprising surge from millennials.

“Millennials showed especially strong increases in job confidence and income gains, a necessary precursor for increased housing demand from first-time homebuyers,” said Doug Duncan, senior vice president and chief economist at Fannie Mae.

Millennials are moving out of their parents’ basements and forming new households at a faster rate, according to Fannie Mae research, but they are still overwhelmingly forced to rent.

“Continued slow supply growth implies continued strong price appreciation and affordability constraints facing millennials and first-time buyers in many markets,” Duncan added.

The leading edge of the millennial generation is, however, entering the housing market in larger numbers today, with some venturing out of their desired urban cores to more affordable suburbs. Millennials delayed both marriage and parenthood, but that is now changing.

Nearly half of millennial buyers had at least one child, according to the 2017 Home Buyer and Seller Generational report just released by the National Association of Realtors. That is up from 45 percent last year and 43 percent two years ago. Children are the primary driver of homeownership, which is now sitting near a record low. Just 15 percent of millennial buyers chose an urban area, which is down from 17 percent last year and 21 percent two years ago.

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76 Responses to Millennials happy about housing

  1. Mike says:

    Good morning New Jersey

  2. Grab them by the puzzy says:

    @kurteichenwald

    If ur a middle-class ACA opponent and these REAL numbers scare you,
    congrats: Ur bill is coming due 4 ur refusal to learn medical economics.

    @kurteichenwald

    Estimate by AARP: Premiums for people age 50-64 will go up as much as $8,500 for less coverage under GOP plan. Make America Sick Again,

    @kurteichenwald

    1st thing put in place by GOP health care plan: Huge tax cuts 4 wealthy. No death panels, no govnt takeover. Lies were bout getting tax cuts

  3. Fast Eddie says:

    Puzzy,

    But can I keep my doctor if I like my doctor?

  4. Grim says:

    Healthcare industry screaming bloody murder over the new bill?

    Isn’t that how you know you are on the right track?

  5. The Great Pumpkin says:

    Any questions?

    “The leading edge of the millennial generation is, however, entering the housing market in larger numbers today, with some venturing out of their desired urban cores to more affordable suburbs. Millennials delayed both marriage and parenthood, but that is now changing.

    Nearly half of millennial buyers had at least one child, according to the 2017 Home Buyer and Seller Generational report just released by the National Association of Realtors. That is up from 45 percent last year and 43 percent two years ago. Children are the primary driver of homeownership, which is now sitting near a record low. Just 15 percent of millennial buyers chose an urban area, which is down from 17 percent last year and 21 percent two years ago.”

  6. Bagholder says:

    ‘Healthcare industry screaming bloody murder over the new bill?

    Isn’t that how you know you are on the right track?’

    Has anyone come out in favor of it? Americans for Prosperity, Heritage, Freedom Works, Club for Growth, etc, are all against it.

  7. Ottoman says:

    You mean the healthcare industry that secretly spent $100 million in advertising according to Forbes to block Obamacare? That one?

    Grim says:
    March 9, 2017 at 8:41 am
    Healthcare industry screaming bloody murder over the new bill?

    Isn’t that how you know you are on the right track?

  8. Ottoman says:

    You must be one of those dummies that thinks those catastrophic plans where you’re only covered if your face is ripped off by a gorilla with a tire iron at Buffalo Wild Wings and there’s still a $50k deductible is good coverage.

    Fast Eddie says:
    March 9, 2017 at 8:15 am
    Puzzy,

    But can I keep my doctor if I like my doctor?

  9. Bystander says:

    Main article- Another propaganda piece intended to puff up home buying. It is “inventory” issue driving up prices. In other words, pay what seller wants and don’t mind rates creeping up as they are still historically low. Millenial couple, making 200k combined, think they are uppity elite so they buy 700k home and then start a family. After the mothers FMLA runs out, they find that $2000/mo. daycare does not mean freedom to work as they will call you at any sniffle. Meanwhile, they get pregnant again and realize they can’t afford $4000/mo. daycare so they try a cheap illegal nanny..oh no Trump has sent them all back to South America. The mother stays at home and loss of income now puts pressure on Dad to find $200k base job…oh no they don’t exist anymore. He can only find $150k. With student loans, cars, insurance, home repairs, cable, never ending property tax increases and health care costs, they realize have to live in debt to survive. Welcome to world, millenials.

  10. The Great American Pussinator Machine says:

    Grim,

    There have been a lot of failed non-profit hospitals that were bought by for-profit operators and new hospital investors and if Obama care goes down, they go down.

    There would be massive rearrangement of medical care in NJ. Either the State of NJ would have to step-in and guarantee Medicaid/Charity care like was done from late -80’s till Obamacare start. Or the State/County would have to go back to some sort of public institution (Jersey City MC, Bergen Pines, Essex County Hospital,etc – pre late 80’s) to take care of the poor/charity care patients – just look at University Hospital in Newark.

    Look the big question will be answered soon enough. Either everyone gets care (Medicare for all) or the Geezers get it, because no one is going to pay for the geezers if they themselves can’t afford a Tylenol for their themselves and kids. And the geezers are the one causing the expenses to go up.

    Just in NJ -top of my head:

    -Carepoint Health – Hoboken UMC, Bayonne MC, Christ Hospital
    -Meadowlands Hospital
    -Mountainside & Pascack Valley (for profit partnership with Hackensack)
    -St.Michaels, East Orange MC.
    -St.Clares (all campuses), Newton
    -Salem MC.

  11. Fast Eddie says:

    Ottoman,

    Over 1000 democrat seats lost across local, state and fed levels during the Oblammy administration and now his paper thin legacy is being torched to ashes. What you’re left with is a bunch of misfits and layabouts crying for justice due to nothing more than their plot in life. It’s no wonder why you’re angry… you have no home.

  12. 3b says:

    Pumps: jeez! One article and you are convinced! Like I have always maintained even though I have not picked on you lately. That you have tunnel vision when it comes to housing your whole sense of financial worth and otherwise is wrapped up in you own a house.

  13. Comrade Nom Deplume, The GOAT says:

    Really weird to see an ad for an undisclosed pharma company seeking to hire an attorney land in your inbox and you instantly recognize it as one that was posted by your wife.

  14. Comrade Nom Deplume, The GOAT says:

    Too bad we don’t have JJ. That was a great setup for his sort of snark

    I miss JJ

  15. Newbomb Turk says:

    9:50 You are truly a horrible ‘winner’, and I use that term very loosely.

  16. D-FENS says:

    Ugh…when are they lifting those bogus Russian sanctions. I want my Russian made AK.

    Romanian knock off’s are just not the same :(

  17. The Original NJ Expat says:

    That’s what I was thinking

    Healthcare industry screaming bloody murder over the new bill?

    Isn’t that how you know you are on the right track?

  18. Fast Eddie says:

    10:08 – I don’t give a f.uck.

  19. The Great Pumpkin says:

    I think I have been on point with my call. So I don’t agree with the “tunnel vision” assessment.

    3b says:
    March 9, 2017 at 9:51 am
    Pumps: jeez! One article and you are convinced! Like I have always maintained even though I have not picked on you lately. That you have tunnel vision when it comes to housing your whole sense of financial worth and otherwise is wrapped up in you own a house.

  20. The Great Pumpkin says:

    What an epic call by the pumpkin for wage inflation in 2017 or 2018 the latest. I swear, if I was an economist, I would be a household name on my calls. Instead, I just get pissed on by everyone here, refusing to acknowledge the amazing calls by me, just so they don’t have to make themselves feel so bad for calling me an idiot. Best part, I never backed down in my calls no matter how many times I was put down for stating my predictions. I was dead set on my analysis being right. Feels great, let me tell you. Where is clot? Would love to hear what he has to say after putting me down for years. I still don’t see people hanging around burning garbage cans roaming the country side, but I do see the Great Pumpkin coming.

    “Finally, there is the labor market, Yellen’s first reference point for policy since her chairmanship began in 2014. Improvement has been slow, but indicators now suggest there is little slack left. The chart below shows that people stuck in part-time work are now around the lowest levels since mid-2008. It took two years to drop this measure by one million to 5.8 million in January, and that slow progress explains Yellen’s patient policy. In December, however, this pool dipped to the lowest levels since June 2008.

    The actual tightness may even be understated. JP Morgan Chase & Co. estimated in 2015 that about a half-million people were stuck in part-time work by employers who want to avoid offering health care benefits. The Affordable Care Act defined full-time workers who are required to be given benefits as 30 hours or more.

    “We are a lot closer to the Fed’s objectives,” said Roberto Perli, a partner at Cornerstone Macro LLC in Washington. “It is really hard to deny that this is not the time to be raising rates.””

    https://www.bloomberg.com/news/articles/2017-03-09/jobs-day-doesn-t-worry-janet-yellen-as-these-indicators-say-go

  21. The Original NJ Expat says:

    You should remind us how great and never-erring you think you are more. No one here would take it as a sign of insecurity. Your Dad must be so proud of you and I’m sure he tells you often.

    Hahahahahahahahahahahaha

    I think I have been on point with my call.

  22. The Original NJ Expat says:

    Pumps – it often happens that abused children develop fetishes as adults.

    What an epic call by the pumpkin for wage inflation in 2017 or 2018 the latest. I swear, if I was an economist, I would be a household name on my calls. Instead, I just get pissed on by everyone here

  23. The Original NJ Expat says:

    Feels great, let me tell you.

  24. The Original NJ Expat says:

    I do see the Great Pumpkin coming.

  25. Newbomb Turk says:

    11:11 … eeeeets all Obammmmmi’s fault. yeah Trump inherited a mess – doncha know.

  26. The Original NJ Expat says:

    It’s certainly his turn in the barrel, I wonder if it still smells like Bush in there?

    11:11 … eeeeets all Obammmmmi’s fault. yeah Trump inherited a mess – doncha know.

  27. Newbomb Turk says:

    Offer Accepted. Oh Yeah.

  28. Comrade Nom Deplume, The GOAT says:

    Here’s a book for the Puzzy to take to the beach. It’s s topic that speaks to him and is written at his level. If he starts now, he should finish by Labor Day.

    http://www.foxnews.com/politics/2017/03/09/amazon-best-seller-reasons-to-vote-for-democrats-book-is-just-empty-pages.html

  29. Steamturd, Part Time Orientalist and Full Time Mysoginist says:
  30. The Great Pumpkin says:

    I’ll remind you as many times as you reminded me I’m an idiot for making those calls. Karma, baby! And I’m eating it up.

    The Original NJ Expat says:
    March 9, 2017 at 12:33 pm
    You should remind us how great and never-erring you think you are more. No one here would take it as a sign of insecurity. Your Dad must be so proud of you and I’m sure he tells you often.

    Hahahahahahahahahahahaha

    I think I have been on point with my call.

  31. Steamturd, Part Time Orientalist and Full Time Mysoginist says:

    Nom…Now the Amazon #1 best seller.

  32. Steamturd, Part Time Orientalist and Full Time Mysoginist says:

    Pumps…I’m still waiting for the wage inflation. Additionally, anyone can make a call that something will occur in the future. What’s always missing with yours is any precision. For example, I can easily say, single-payer healthcare is coming. And 20 years from now it will get here.

  33. D-FENS says:

    Wow. the two bombers Trump just parked in South Korea have nukes on board…

    Fcuk

  34. BlueRibbonTeacher says:

    What is he claiming victory for again?

  35. Steamturd, Part Time Orientalist and Full Time Mysoginist says:

    And in other news. The DOW has been down every single day since I called the top on the 1st!

  36. Steamturd, Part Time Orientalist and Full Time Mysoginist says:

    I think on wage inflation.

  37. The Great Pumpkin says:

    Come on, really? I didn’t just state it would happen in the future. I gave a specific time-frame. Pretty damn amazing call, yet not one person on this blog will acknowledge it.

    Wage inflation is here. There is no more slack in labor. Elimination of the hb1 program along with pressure to not allow illegal immigrants is the nail in the coffin.

    Steamturd, Part Time Orientalist and Full Time Mysoginist says:
    March 9, 2017 at 1:45 pm
    Pumps…I’m still waiting for the wage inflation. Additionally, anyone can make a call that something will occur in the future. What’s always missing with yours is any precision. For example, I can easily say, single-payer healthcare is coming. And 20 years from now it will get here.

  38. The Great Pumpkin says:

    Nice call!

    Steamturd, Part Time Orientalist and Full Time Mysoginist says:
    March 9, 2017 at 2:23 pm
    And in other news. The DOW has been down every single day since I called the top on the 1st!

  39. D-FENS says:

    Prolly down cuz of that crummy jobs report that just came out.

  40. Juice Box says:

    Re:South Korea and B-52s.

    The chair force has nothing on the Navy.

  41. Steamturd, Part Time Orientalist and Full Time Mysoginist says:

    Nah…There was that rocket day after Trump excellently addressed congress. I knew this would then stoke interest rate fears. Nothing spooks the market more than increased interest rates. Since the daily drop has been smooth and small, which is great, since as long as the drop is not rapid, the interest rate will still be raised. Which in my opinion, it should be.

  42. Steamturd, Part Time Orientalist and Full Time Mysoginist says:

    And crudes down to $49 again. What was my oil call? $50?

  43. Steamturd, Part Time Orientalist and Full Time Mysoginist says:

    And in weather, I’ve been tracking a storm since last week that looks more and more likely to happen. Right now, it’s looking like a foot is the safe call for Monday night into Tuesday night, with the real potential for 20″ north and west of the city.

  44. 3b says:

    Pumps wage inflation is good in your mind because that means that people will pay big bucks for real estate including yours. Like I said for you it all ties back to real estate including your real estate.

  45. Newbomb Turk says:

    Yeah…so we um….bought a house. Oh yeah…Real Estate….nevermind

  46. D-FENS says:

    literally just sold the Altima and got an AWD rogue. you really think we’ll get a foot of snow?

    Can’t wait to test out the AWD…

  47. Comrade Nom Deplume, The GOAT says:

    DFens

    I thought that US nuclear deterrence policy was to never let anyone know where nukes actually were?

    Also, nukes on South Korean soil isn’t exactly news. Fact is, we are constantly had a nuclear deterrent presence able to eradicate North Korea at any time for much of my life.

    If Trump is making it known that we have nuclear equipped bombers in South Korea, then that is saber rattling.

  48. Bystander says:

    Pumpkin is a mindless turd who thinks regurgitating stories from people light years smarter than himself makes him an “economist”. Wage inflation, my was. Like Steam, I am still waiting. Company did not give raises and I was strong performer by every measure. I also talk to every headhunter who comes at me with legit job. I tell them my skill set, years of experience, and current salary. Rarely do I get a higher number. IBs can still find cheap talent apparently. H1b elimination? When and where? Like Trumps claims that we will have the “greatest health care bill of all time”. He is BS. Anything that businesses cry about he will cave to, just like all of them. H1b may get some tweaks but nothing that stops the cheap tech labor from getting to big companies.

  49. D-FENS says:

    We’re talking about the guy who emblazons his hotels with huge shiny brass coated signs bearing his name. I don’t think he’s much for secrets.

  50. Juice Box says:

    re: “Yeah…so we um….bought a house.”

    Newbomb Turk – Congrats on moving on from being a dirty renter to becoming a bag holder.

    Now pay your taxes, cut your lawn and for god sakes do not fill up your garage with junk so you cannot park your vehicles in there. Garages are for cars, boats, and motorcycles, not for trying to get an episode on a Hoarding reality TV show.

  51. 3b says:

    Bystander: top performers in my place got 1 percent this year, I don’t know anybody who is getting 5 to 10 percent annual increases that used to be the norm at one time.

  52. Tywin says:

    “Club for Growth” is a Political Action Committee who support: Amnesty, H-1B visa growth programs, ObamaCare, and the Trans-Pacific Trade Deal (TPP).

  53. Juice Box says:

    “In 2008 and 2009, the Club for Growth opposed the $787 billion stimulus bill, Cash for Clunkers, cap and trade legislation, the Wall Street bailout, the auto bailout, the Affordable Care Act and the bailout of Fannie Mae and Freddie Mac”

    Sounds like my kind of club.

  54. Bystander says:

    3B,

    Exactly. I guess there is high demand for 36 year old junior credit analysts with connections on the “inside”.

  55. EncuncKep says:

    It essential to see previous work that the E-Ontario Ecommerce company has prepared for other clients or at the minimum they have some testimonials. A few many companies that have flashy Websites advertising their service but no real world evidence that they will do no matter what say may be do.

  56. Zack says:

    I don’t think elimination of H1B visa program will make a major dent. Most of the companies have moved to an onshore-offshore model. Most companies have a Manager onsite and entire development teams offshore. Work gets done there and they get manager here. With Internet/VOIP/Webex, physical presence of foreign resources are not required.

  57. No One says:

    D-FENS,
    Watch out thinking that AWD makes you invulnerable in snow. It helps you gain speed but does nothing to help you slow down, and not much help in turning, which is where most accidents come from. I’ve seen SUVs without snow tires slide right through stop signs, when my wife’s Odyssey with Blizzaks had no problem. Snow tires are what makes the biggest difference in snow and ice. But even snow tires come in different strengths, and there’s a downhill corkscrew turn where even my AWD A6 with “performance” snow tires and electronic stability almost crashed because of slick ice.

  58. The Great Pumpkin says:

    Find another job quick! You are being taken for a ride, this isn’t 2011.

    3b says:
    March 9, 2017 at 3:24 pm
    Bystander: top performers in my place got 1 percent this year, I don’t know anybody who is getting 5 to 10 percent annual increases that used to be the norm at one time.

  59. The Great Pumpkin says:

    What exactly are you getting paid? You make it seem like skilled professionals aren’t getting paid when that’s clearly not the case. I don’t hear many skilled professionals complain about pay anymore. I don’t hear about anyone not getting raises like was the case 5 years ago.

    Bystander says:
    March 9, 2017 at 3:01 pm
    Pumpkin is a mindless turd who thinks regurgitating stories from people light years smarter than himself makes him an “economist”. Wage inflation, my was. Like Steam, I am still waiting. Company did not give raises and I was strong performer by every measure. I also talk to every headhunter who comes at me with legit job. I tell them my skill set, years of experience, and current salary. Rarely do I get a higher number. IBs can still find cheap talent apparently. H1b elimination? When and where? Like Trumps claims that we will have the “greatest health care bill of all time”. He is BS. Anything that businesses cry about he will cave to, just like all of them. H1b may get some tweaks but nothing that stops the cheap tech labor from getting to big companies.

  60. The Great Pumpkin says:

    3b, seriously? Top performers getting 1%? How do they keep and attract talent?

  61. Comrade Nom Deplume, The GOAT says:

    DFENS

    Ha. Good point. He isn’t one for subtlety

  62. The Original NJ Expat says:

    Exactly right D-FENS. The latest Winter tires are like magic such that an Altima on modern Winter tires may outperform many SUVs on 3 season tires (what the industyr likes to call all season tires). One of the things that I still marvel at is how much better the ride is on Winter tires, even in dry conditions. I’ll typically change over to my Winters when it’s about 30 degrees out and it’s amazing how much better the ride is and the same thing happens in the Spring at 60 degrees when the Summer or OEM tires go back on. “Regular” tires get hard at cold temps. Winter tires get hard at high temps.

    D-FENS,
    Watch out thinking that AWD makes you invulnerable in snow. It helps you gain speed but does nothing to help you slow down, and not much help in turning, which is where most accidents come from. I’ve seen SUVs without snow tires slide right through stop signs, when my wife’s Odyssey with Blizzaks had no problem. Snow tires are what makes the biggest difference in snow and ice. But even snow tires come in different strengths, and there’s a downhill corkscrew turn where even my AWD A6 with “performance” snow tires and electronic stability almost crashed because of slick ice.

  63. Newbomb Turk says:

    3:14 … mmm kay. Thanks

  64. Bystander says:

    Doof,

    You’ve just heard three skilled professionals claim that no raises occurred this year. You go by articles written by journalists and economists, two professions who get paid to write stuff (most likely per word) then have no concern if their prediction is right or wrong. No one cares…next article. I go by myself and people around me bc I see true situations. We are all college grads, older, some raising families, some not. Some ties to govt jobs but most private. My brother works for very successful hedge fund. If things we getting better than I would see it among us. It is not. My bro. in law works for govt. agency 30 year almost and he has been most stable. My bro at hedge fund does well but not killing it. It is tough competition to stay and he works like a dog…has for 15 years there. My sister works for charity wing of rich man’s foundation. He is billionaire but provides no health benefits to his employees. I am on my 3rd position in 4 years at current IB. They have gone from 2500 employees to 600 in eight years with more cuts every month. I have busted my rear to stay but would run if a good full time job making more appeared (none of this bonus “could be” 25% but take a 20% pay cut bs). These are facts, not fluff piece articles.

  65. Raymond Reddington says:

    Bystander
    Your readings are accurate, similar issues in healthcare where I am located.
    Cracks appearing in the support structure.
    When it snaps it’s going to be impressive…

  66. 3b says:

    Pumps: they keep some for a variety of reasons. Others especially the younger ones leave if they can. Young workers move around these days. 5k here 10k there stay a year or two move on. Younger ones are just replaced with others and on it goes. And this is in multiple industries. Same story from all my friends in all different industries. I know a couple of people who have not had a raise since before the financial crisis.

  67. 3b says:

    Pumps no thanks. I am happy where I am. Second career for me. And we have other attractive perks that work for me. If I was starting out with young kids I would have left I have had multiple offers. My whole point in this discussion is I don’t see this wage inflation you speak of in many industries. 5,7.10 percent raises were the norm for years. That is not the case anymore.

  68. BlueRibbonTeacher says:

    I don’t hear about anyone not getting raises like was the case 5 years ago.

    I’d wager 75% of teachers in NJ are making less than they did 5 years ago.

  69. D-FENS says:

    I think the tire thing is horseshit. Nothing ever beat my 4×4 pickup. I don’t care what kind of tires you have on your car. Yeah I know what the articles and videos on the intertubes say. Just my personal experience.

  70. Steamy Cankles Foundation says:

    I had true 4×4 on my Xterra. The snow tires on my two Mazda’s are 100% better than 4-season radials on my 4wd x.

  71. The Original NJ Expat says:

    There is truly nothing better than real winter tires on wet ice (ice with a thin layer of water on top). The micro-sipes and micro-pumps in the tread literally suck the water off the ice getting you down to “dry” ice. In most cases they work better than studded tires. Radial snow/winter tires have been great in snow since the 1980’s. Now they’re just great in anything under 30 degrees, wet or dry. I just can’t get over how much they’ve improved the ride in recent years. I had my first set of dedicated snows on my 1800lb 1984 Honda CRX, Conti Winter Contacts, I believe. They were amazing in Snow. Nothing beats the cornering of real Winter tires. For $1,000 or less for a set they pay for themselves with one crash avoidance.

  72. The Original NJ Expat says:

    BTW, in Canada Winter tires are mandated by law. Everyone has two sets of tires per car.

  73. It is for the first that I just visited your site and I find it really interesting! Congratulations!

  74. Newbomb Turk says:

    Tires are important, sure….but AWD systems rule…4x4s are superior. your mileage may vary. my BMW weights the power toward the Rear which makes is drive more like a traditional rwd sports sedan, our Volvo XC climbs like a mountain goat.

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