There’s a first for everything, and evidently it’s not showing up in the housing market.
Huh?
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In a nutshell, for a multitude of reasons young adults are not buying homes as previous generations did…
Think of a game of baseball.
Base hit, runner now on first.
To advance the runner, another base hit, a walk, or an error is needed.
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For the generation of buyers who have started families and bought their homes five + years ago (or more), who will advance them from their starter homes?
For the would-be sellers who are relocating, or in poor health, or financially distressed, or retiring, who will get them to second or third base?
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Student debt is one of the biggest challenges holding the Millennials back. Education is prohibitively expensive, and a non dischargeable debt, even in bankruptcy.
The old model is broken, and creative solutions are needed to pay off debt and simultaneously save for a down payment in an unrewarding environment(with CD’s yielding just over 1%).
Going to dust off a few of my real estate books and see if any ideas come to mind.