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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I think people are in denial.  What has been happening here is just simply not sustainable.

Everyone lambasted the millennial poster who started the thread asking how they were ever going to be able to get a house, but I do agree that it is a problem if the generation coming up simply cannot afford to get into the market.

And the jobs issue isn't just about govt. budget cuts.  Some very smart economists have been talking about AI and concerns that there will be far fewer jobs going forward.  That's another topic for discussion, and maybe it won't come to fruition.  But it is something to look at.

The Boomers had high interest rates, but they also had lower prices.   Most Boomers also saw HUGE increases in equity and were able to refinance to lower rates and take cash out. Gen X had low interest rates, but they had high prices.

The millennials are facing exorbitantly high prices and eventually steadily increasing interest rates AND a tighter job market.

The attitude on that other thread was, "Well, we paid our dues; they'll have to struggle and pay theirs!"  But I don't think people realize how that affects all of us.

When the middle class was really strong, housing was not seen as something you got rich off of.  It was seen as something that you invest in for practical reasons -- to have a place to live that is paid off when you near retirement.  The concept of the 30-year loan was that you live in the house.

This whole notion of starter houses and flipping and building equity only works if prices are going up, up, up, and up.  In a normal market, the value of your house doesn't increase that much in the short term.  Buying a house and then selling it in 5 years, for example, wouldn't give you enough to pay a down payment on another house.  But meanwhile, salaries aren't high enough and rents are too high that there seems to me little way people can realistically save for a down payment.

I don't think what has happened to real estate is sustainable.

But who knows.  We'll see.  [/quote]

Sorry pal but we paid our dues, we lived in the exurbs for 12 years to afford a house close in.  We aren't rich and we built up equity by making house payments.  If millinials are upset they can't afford a million dollar "starter home", well that's because it's not a starter home.[/quote]

PP is cutting off their nose to spite their face. You need a steady supply of monied buyers to keep prices up. By trumping your own imagined virtue and youngsters seeming vice, you're missing the fact that the pain of millennials could mean your dues don't pay off financially, because they can't afford the prices needed to make you whole when you sell.[/quote]

It's very hard to let go of feeling like you earned something because of your own hard work and diligence than luck.  The reality is that it's a combination of both.  Millenials will NOT enjoy the same type of growth because of the fundamentals.  Our population only increases because of immigration, what happens if that is reduced significantly?  [/quote]

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