From HousingWire:
Here are 5 reasons the Millennial homeownership rate is low
For years, several factors have been tossed around such as high home prices, fear over the last housing crisis, delays in family formation and even student loans as reasons why the younger generation is holding out.
But now, the Urban Institute released a study that shows the actual data behind these factors, revealing what is really holding Millennials back.
The generation’s homeownership rate was 37% in 2015, about 18 percentage points lower than the rate of Gen Xers and Baby Boomers when they were ages 25 to 34.
Here are five factors that Urban Institute found have kept Millennials out of the home-buying market longer than previous generations:
1. Delayed marriage: Yes, delaying family formation is, in fact, a hindrance to homeownership. As it turns out, being married increases the probability of owning a home by a full 18 percentage points, after accounting for other factors such as age, income, race/ethnicity and education. If the marriage rate in 2015 had been the same as it was in 1990, the Millennial homeownership rate would be about five percentage points higher.
2. Greater racial diversity: White households have the highest homeownership rate by-far, therefore the increasing diversity within the Millennial population also contributes to the lower homeownership rate. If the racial composition remained the same in 2015 as it was in 1990, the Millennial homeownership rate would be 2.6 percentage points higher.
3. Increased education debt: Student debt has been a growing problem, and could even be turning into a crisis. But how much does it affect homeownership rates? The Urban Institute’s data shows a 1% increase in student debt decreases the likelihood of owning a home by 0.15 percentage points.
4. Increased rents: Nationwide, rent just jumped to a new all-time high, surpassing an average $1,400 per month. And now, data shows that a 1% increase in a household’s rent-to-income ratio decreases the likelihood of homeownership by 0.07 percentage points.
5. Delayed child bearing: Not only are Millennials taking longer to get married, but they are also spending more time before having children. For those who are married, having a child increases the probability of owning a home by 6.2 percentage points.
Another important factor to Millennial homeownership includes parental wealth and homeownership status. For any generation, a child’s likelihood of being a homeowner increases by nine percentage points if their parent is a homeowner. Also, a 1% increase in parental wealth increases the child’s likelihood of being a homeowner by 0.016 percentage points.
They are too busy doing voluntorism. Plus it’s hard to save when you are paying $14.95
For avocado toast
Maybe millennials will discover Glendora NJ. I had the misfortune of learning about it when I drove through it after crossing the Delaware memorial bridge. Surprisingly affordable too.
3b,
Hackensack is exploding with development. There are at least 5 or 6 major residential projects either underway or starting soon. The former United Jersey Bank building is under construction as well as the former tennis club property on River Street. The city has changed the traffic pattern on State Street and Main Street to enhance traffic flow for retail business and restaurants. Hackensack has 2 train stations and express bus service into Manhattan and the commute is about half an hour. Hackensack is doing just fine!
Hackensack to NYC is half an hour by bus? Is it GWB down to Port Authority, or Turnpike to the Tunnel?
Did Port Authority to Wayne Transit in 38 minutes at just before 5pm on Monday. Was surprised as hell. I’ll chalk that one up to light traffic because of the odd holiday week, vacations, etc.
https://www.nj.com/data/2018/07/njs_biggest_winners_and_losers_since_the_housing_c.html#incart_2box_nj-homepage-featured
Home price change since 2006 peak: Hudson County, North Jersey strongest performers; many South Jersey municipalities 50% below peak.
Hackensack buses are available via GWB or Lincoln Tunnel. I was referring to service via Lincoln Tunnel.
Newark tossing in another Billion in payroll tax exemption for Amazon.
https://www.nj.com/essex/index.ssf/2018/07/another_1b_in_tax_breaks_for_amazon_hq2_okd_by_new.html
30 year. I will have to drive around a little more in Hackensack when I am there I am usually in the northern part . It’s still ugly! It has the ability to be a millennial spot but not seeing it yet based on who is getting on the train. As for the train it’s more like a 40 or more minute ride to Hoboken then the PATH switch. But still a good commute.
I’m still chuckling over the idea that Hackensack has the same crime rate as Miami. Hackensack is actually a nice town and I thought the same when thinking of the commute. And, route 4 is right there and minutes from the GWB. It’s in an excellent location.
Another brewery on deck for Hackensack
North Jersey train towns outperforming othe NJ towns, I meant to add above.
Fast Hackensack has potential but it is tired and ugly but that can be fixed. The schools are not highly regarded, right or wrong. And it is very close to the only Gay bar in Bergen Co It is called Feathers and has been there for years.
Newark tossing in another Billion in payroll tax exemption for Amazon.
Tax incentives for businesses? Doesn’t this go against the liberal mantra? Aren’t corporations supposed to pay their fair share?
I heard yesterday that Kearny is supposed to be the next urban town up for renewal.
Rockport Shoes closing all their brick and mortar stores switching to on line only.
3b,
Like any neighborhood, it transforms and Hackensack is doing the same. You want tired and ugly? Drive down Ocean Avenue or Johnston Avenue in Jersey City.
Hackensack is next New Brunswick and Morristown. Has built enviroment of the future (train station, mixed use downtown, multifamily housing at variety of price points) and critical mass is forming that will make Hackensack the go to center of Bergen County, just like New Brunswick in Middlesex and Morristown in Morris. But Hackensack won’t become what Jersey City is in Hudson.
My favorite thing about Jersey City these days is the Hasidic community on MLK in Greenville. That is where the Brooklyn Hasidim are going.
Rutherford vs Hackensack in a cage match – who wins?
Is Rutherford too suburban?
Is Hackensack too gritty?
Both are fairly matched from NYC commuting standpoint.
Fast it will take a while for that to happen but I agree it will.
We owned a tavern and restaurant in Greenville for about 30 years. My, have times changed!
Grim right now I would say Rutherford. Schools are considered better for when those milllenials have kids. And it’s only one stop to Secaucus.
Rutherford is way ahead of Hackensack in attracting the hipster crowd. Hackensack is struggling with becoming more upscale. Rutherford buildings are being built as condos and Hackensack buildings are generally being built as rentals.
Miami isn’t really similar to most of the rest of Florida. One could say the same of Camden or Paterson in NJ. But in contrast, historically Miami’s Cuban immigrants were hard working and tended to be Republican self-responsibility types. (I’ve heard that their kids, taught by America’s commie state-run eduganda establishment, have been gradually swayed from that line of thinking). Anyway, lots of Floridians have more familiarity with Georgia or New York than they have with Miami, which is almost like a foreign country in comparison.
We have left Lyndhurst out of the Bergen County development discussion. Lyndhurst has 2 train stations on the Main Line. Huge amount of development going on and right next to Rutherford.
I would imagine the spill-over development in places like Union City, Gutenberg, North Bergen, West New York is the biggest competition for a Hackensack, which went compared seems to be a little bit out in the middle of nowhere.
Whereas Rutherford is more of a Montclair-y vibe. Residential, but with the right mix and amenities. You aren’t going to get that in the spill-over towns unless you love the Bronx/Queens style high density single family.
I road the Cal Train from San Jose to San Francisco a couple of weeks ago. Development pattern around train stations is very similar to what is happening in NJ. This weekend I took NJ transit from Orange Station to NY Penn. Huge amount of development in Orange and East Orange around the train stations.
… historically Miami’s Cuban immigrants were hard working and tended to be Republican self-responsibility types.
I agree and saw it first-hand. Bergenline Avenue was beautiful back in the day!
As compared to North Hudson locations Hackensack has better access to shopping and highways and is less congested. If you want to have a place to park a car Hackensack will be more attractive and the commute time is not that different. Of course I am not comparing locations with waterfront or views.
Rutherford definitely has that Montclair hipster feel. And has more of a sophisticated NYC thing going that hipsters love. And I agree with grim Hackensack feels more like the hinterlands.
Orange/East Orange developing is a strongly positive sign for North Jersey.
You guys bore me with that back and forth chatter about North New Jersey rate cage towns. Who gives a damn once your past the pollution packed urban areas of this state.
remember 20 years when you entered Pennsylvania, along the highway, you were met with this sign:
AMERICA STARTS HERE
Hmm. I think I’ll sell here in Hunterdon and move to Northern Bucks County, somewhere around Aquetong.
OUUCCCHHH. Prices there are even more expensive.
Enjoy the day, guys.
Now to mosey on down and sign another multi contract.
You all are missing one thing when you mention Hackensack (Zisaville), Union City (Stackville), Weehawken (Turnerville), North Bergen (Saccoville), Hoboken (ex-Russoville). Can’t say about Rutherford at this moment.
Political machine corruption. So your investment / development might or might not occur the way you might or might not have planned, with or without certain expenses or partners that you might or might not have thought about it.
I expect more from all of you. You sound to much like the professor.
https://youtu.be/YlVDGmjz7eM
Eddie, no joke. My Facebook feed had a person who simultaneously bad-mouthed tax cuts while talking about the billions Newark should give back to Amazon. Silicon valley is immune to liberal values.
On my way back from. Boston, I stopped at Brooklyns in Hackensack for pizza. Superb.
Whole Foods cleared a key hurdle on Monday in its pursuit to open a store in the township.
The Planning Board approved expansion of the building where the grocer plans to open its store. The vacant supermarket, at the corner of Preakness Avenue and Valley Road, was home to the now-bankrupt A&P. Its footprint will grow by 2,682 square feet.
An exact opening date for the new store remains unknown.
When the Texas-based supermarket chain announced it would open at Valley Ridge Shopping Center in April, its spokeswoman, Tina Clabbers Feigley, said it would take a “few years.”
She stuck to the same answer on Tuesday, saying: “The board approval is a great step,” but “that timing still stands.”
The store will be the first Whole Foods market to open in Passaic County.
Bad day for democrat party. There spokeswoman stormy was arrested for getting a bit too friendly with the patrons. And now there corrupt FBI agent is ready to spill the beans on blammys schemes.
“My favorite thing about Jersey City these days is the Hasidic community on MLK in Greenville. That is where the Brooklyn Hasidim are going.”
Big issues with claims of tax exempt yeshivas. Funny thing about those Hasidim. They absolutely do not care what their properties look like on the outside, but once inside, they tend to flaunt their wealth and massive collection of Judaica. Not sure where this stems from? Perhaps, a throwback from Europe where hiding wealth might have saved your life.
Whole Paycheck just sent me an add for their Amazon Prime specials.
There is a sale on Animal Welfare Rated, Air-Chilled, Boneless Chicken Breasts*?
WTF. We ARE elitists.
This liberal has been steadfastly against handouts to Amazon. Or don’t you two tool bags read any posts but the ones that suit your myopic worldview. The fact that you are still taking potshots at the losing party tells me both of you closet cases have no idea wtf is going on.
Mr. Trump’s election.
Here’s why the European leaders are so surprised: It’s not difficult to imagine a mainstream political leader campaigning with promises to build a wall on the border, move the American embassy in Israel to Jerusalem and punish the Chinese government for its economic policies. Mainstream politicians might easily pledge all of these, but upon assuming power they would never act on them.
Chancellor Angela Merkel of Germany and President Emmanuel Macron of France may have had a similar mind-set about Mr. Trump. They read his tweets and waited for him to show up at a Group of 7 meeting, sure that he would never follow through on proposals. How could he, in the face of all the adults in the room? And yet, he has. Again and again.
Like today’s other populist leaders, Mr. Trump knows that his standing with voters hinges on making good on his most radical promises. For a populist leader to succeed, he or she doesn’t need to solve problems, nor outdo his or her predecessor. All the populist leader has to do is be different from the mainstream — to do what mainstream politicians would never do. For example, insult Germany.
‘Scarred’ generation of investors looking at yield curve all wrong, veteran bull Rich Bernstein says – CNBC
https://apple.news/AuCAhBzn0RrSn_ibpf0Ak-g
“Hackensack is next…Morristown.”
Respectfully disagree. Actually not a chance.
Morristown has ‘redeveloped’ but it was never as dreary as Hackensack and it always had certain attributes Hackensack doesn’t. Village green, concentrated town center, well developed and attractive main street, large number of anchor professional workers, contiguous to high wealth populations (Harding, Mendham), history, large adjacent recreation areas (Jockey Hollow, etc).
Hackensack can and likely will improve (my interactions with it couldn’t be much worse) but to believe it is going to get to downtown Morristown at any point in my lifetime is wishful thinking.
The writing on the wall for those who wish to see it. North jersey is changing before our eyes.
grim says:
July 12, 2018 at 9:38 am
Orange/East Orange developing is a strongly positive sign for North Jersey.
You are def more of a Pennsylvania guy than a jersey guy. No offense meant, so don’t take it that way.
Xolepa says:
July 12, 2018 at 9:52 am
You guys bore me with that back and forth chatter about North New Jersey rate cage towns. Who gives a damn once your past the pollution packed urban areas of this state.
Pretty sad. Get paid all this money to screw over hard working individuals. The financial world we live in sucks. It’s such a joke.
https://www.yahoo.com/amphtml/finance/news/wall-street-managers-cost-americans-600-billion-past-decade-134658282.html
Think of how much pension debt is out there, and now realize rich wall st guys robbed over 600 billion from these workers. Now compound that and think about how much worse these guys have made it for these worker’s pension funds. Sad.
Tech company: We’re buying 1.24 million square feet of office space and 1,100 acres of land in NJ. Anybody know if this office space is for new hires or will it be used to consolidate existing NJ locations?
https://www.unicomglobal.com/news/unicom-corporation-to-acquire-property-located-at-whitehouse-station-new-jersey/
Here’s an interesting academic paper. Exposure to unionized teachers make men dumber. And African Americans and Hispanics are hit hardest:
Let’s see who marches to protest the damage teacher unions do to minorities.
The Long-run Effects of Teacher Collective Bargaining
Michael Lovenheim, Alexander Willén
NBER Working Paper No. 24782
Issued in July 2018
NBER Program(s):Economics of Education, Labor Studies, Public Economics
Teacher collective bargaining is a highly debated feature of the education system in the US. This paper presents the first analysis of the effect of teacher collective bargaining laws on long-run labor market and educational attainment outcomes, exploiting the timing of passage of duty-tobargain laws across cohorts within states and across states over time. Using American Community Survey data linked to each respondent’s state of birth, we examine labor market outcomes and educational attainment for 35-49 year olds, separately by gender. We find robust evidence that exposure to teacher collective bargaining laws worsens the future labor market outcomes of men: in the first 10 years after passage of a duty-to-bargain law, male earnings decline by $2,134 (or 3.93%) per year and hours worked decrease by 0.42 hours per week. The earnings estimates for men indicate that teacher collective bargaining reduces earnings by $213.8 billion in the US annually. We also find evidence of lower male employment rates, which is driven by lower labor force participation. Exposure to collective bargaining laws leads to reductions in the skill levels of the occupations into which male workers sort as well. Effects are largest among black and Hispanic men. Estimates among women are often confounded by secular trend variation, though we do find suggestive evidence of negative impacts among nonwhite women. Using data from the 1979 National Longitudinal Survey of Youth, we demonstrate that collective bargaining laws lead to reductions in measured non-cognitive skills among young men.
No one,
Jesus, you really believe this crap? Stop blaming teachers for the failures of students and their parents. It’s time these students and parents take a look in the mirror and own their mistakes instead of blaming others.
Btw, that study has to be the biggest crap ever. Wtf does collective bargaining have to do with African American males doing worse and worse in life? Go look at how they live and what they value. Let me tell you, it’s not education.
Whoa, a teacher belonging to a union makes males stupid. Teachers not belonging to a union make males smart. Just dripping in got damn bias.
The author of this study should go do another study on the impact of the removal of unions on our society. It has not been good at all. It basically destroyed the middle class.
That’s what happens when you go from 38% of the workforce in a union to 10%. You kill the middle class…..shotgun to the head of the most glorious middle class this world has ever seen.
Hope everyone is happy the union workforce is dead as is the labor movement.
Arkansas…
http://www.arkansasonline.com/news/2018/jul/11/van-buren-man-charged-in-infant-s-death-1/
Hudson County gathering more accolades, this time on lux home price appreciation.
https://www.realtor.com/research/luxury-home-prices-gain-momentum-first-half-2018/
Hackensack hospital is also growing with a huge addition under construction right now.
I think Lisa Page might be hot…except she has Arsenio gums.
That’s what happens when you go from 38% of the workforce in a union to 10%. You kill the middle class…..shotgun to the head of the most glorious middle class this world has ever seen.
Hope everyone is happy the union workforce is dead as is the labor movement.
We are trying to restore labor’s bargaining power via tariffs. Even the union knows not to let everyone in. Restricting the supply of labor = bargaining power.
You can’t correlate collective bargaining to anything with regards to teaching. At least not over the past 2o years. Collective bargaining from teachers unions has been an incredibly elementary process. They keep the contract that existed since 1975, and bargain anywhere between 1 and 4%. Or in the case of my former union, -1%.
This liberal has been steadfastly against handouts to Amazon. Or don’t you two tool bags read any posts but the ones that suit your myopic worldview. The fact that you are still taking potshots at the losing party tells me both of you closet cases have no idea wtf is going on.
Then you are clearly in the minority of liberals.
Agreed. This is a huge plus for the long term survival of the middle class. I respect trump on some of these issues. This NATO move is a beautiful thing. If there was a strong union, this would have never happen.
Any coincidence that wage stagnation across the board followed the elimination of unions. I don’t think so.
“We are trying to restore labor’s bargaining power via tariffs. Even the union knows not to let everyone in. Restricting the supply of labor = bargaining power.”
It’s crazy. Like I said, let the author conduct a study on the impact the death of unions had on society, specifically the middle class.
Blue Ribbon Teacher says:
July 12, 2018 at 9:17 pm
You can’t correlate collective bargaining to anything with regards to teaching. At least not over the past 2o years. Collective bargaining from teachers unions has been an incredibly elementary process. They keep the contract that existed since 1975, and bargain anywhere between 1 and 4%. Or in the case of my former union, -1%.
““Continued growth in high-paying jobs and stock market inertia have reignited many luxury markets this year,” Javier Vivas, director of economic research for Realtor.com, said in a statement. “We’ve seen a substantial increase in buyer demand for high-end homes, even with prices and costs of ownership swiftly on the rise. Today, $1 million won’t get you a luxury home in most major markets.”
That’s today — tomorrow could be worse. In 17 of the 91 markets Realtor.com has been tracking, price growth now exceeds 10 percent.”
The New Entry Point for American Luxury-Home Buyers: $1 Million – Bloomberg
https://apple.news/Azwa4HGQ-QkiXTYbQmLCJOw
Definitely enjoyed those $3.99 chicken breasts from whole foods tonight.
https://www.zillow.com/home-buying-guide/busting-4-big-real-estate-myths/?utm_source=email&utm_medium=email&utm_campaign=emm_g_0718_buzzmythbusters&utm_content=herobutton
“Myth: Buy the worst house in the best neighborhood
This notion hangs around because it just seems to make sense. If you really want to make a smart investment, everyone knows location is the most important factor. So the worst house in the best neighborhood should be a great deal. You’re buying the best location you can afford, so what if you have to buy a sub-par house? But it turns out, that’s not such great advice. At best, the bottom 10 percent of houses in a ZIP code will appreciate at a similar rate to the other 90 percent of homes, leaving you no better but no worse off than your neighbors. But it turns out that in the most affluent neighborhoods, the worst house is actually likely to appreciate more slowly than the houses around it. In essence, not only is the myth not true, when it comes to the nicest neighborhoods, it’s the exact opposite of true. The worst house in the best neighborhood is the worst investment.
Why would that be? Most likely the demand for cheap homes isn’t very strong in affluent neighborhoods. People who want to live in fancy ZIP codes want fancy houses as well. Besides, a house that is substantially cheaper than those around it is less likely to attract bargain hunters than it is to raise concern about what’s wrong with it.
How about the worst house in the hottest neighborhood? If you can get into a neighborhood that has seen five consecutive years of higher-than-average home value appreciation, you can get one of the low-end houses, fix it up and turn a tidy profit. But timing is everything. If you miss the spike, you’ll be stuck in an underperforming house. If you buy a bottom-tier home in a neighborhood that was recently hot but now just luke-warm, you’re going to see lower than average appreciation.
According to the data, to see tBhe maximum return on your investment, you should buy in the most expensive neighborhood that you can afford to buy a home that isn’t in the bottom 10 percent. It doesn’t have to be the best house or even one right in the middle. But the worst is, well, the worst.”
Myth: Real estate is a terrible investment
It’s true, when you look at annual returns over most long periods, stocks perform at almost twice the rate of residential real estate. But you can’t live in your stock portfolio. That’s worth something each and every month. In addition, buying a home probably means taking out a mortgage. Not only does that bring tax benefits, but it allows you to leverage your down payment to make a bigger investment. If you have $100,000 to invest in stocks, you can buy $100,000 worth of stock. But if you take that same $100,000 and invest it in a home at 20 percent down, you can buy $500,000 worth of real estate.
In “Zillow Talk,” Zillow Group CEO Spencer Rascoff and Chief Analytics Officer Stan Humphries crunched the numbers and determined that from 1975 to 2014 the S&P 500 averaged an annual return of 10.4 percent while residential real estate averaged 11.6 percent annual returns. Buying a home is a great investment.
Myth: Pumps has two functional brain halves.