Jump to content

TheWorldNewsOrg

Young First-Time Buyers Are Vanishing From US Housing Market.

Topic Summary

Created

Last Reply

Replies

Views

TheWorldNewsOrg -
JW Insider -
5
56

Top Posters


Recommended Posts


9 hours ago, TheWorldNewsOrg said:

image.png

The graph pulled from the article is surprising, in that, while the trend is very real and the reasons given for the trend are real, it's a longstanding trend, not something that is just now surprising the market. It's always presented as if this just came out of the 2008 Great Recession, or the Housing Crisis, or "Millennials," but we can see the roots go a lot farther back into the 1980's.

In the mid 1980's, I was working for the Trump Organization (and various NYC Landlord Organizations: LeFrak, Helmsley) through a consulting firm A.D.Little, (Cambridge) and the basic goal was to use housing data (US Census, DHCR, etc) to defend Reaganomics and simultaneously defend the squeezing of the highest possible percentage of American's disposable income into rent. There were cycles when pushing the envelope on higher rents, actually drove more people back into house/condo/coop purchases. But longevity and generational issues (baby boomers) were another factor.

In a new book called "Homewreckers," (Aaron Glantz) there is a good review of the recent 2006/2007 housing crisis which also shows that most of the exact same precursors are being repeated again in the current market, including the bundling of risky mortgages into hedge funds. Some of the same players who got bailed out by Bush and Obama are back at it, and three of them are in Trump's White House (Cabinet) after Trump gave them all million-dollar tax breaks. And one of them who is not part of Trump's White House, went on 60 minutes last night to present himself as a "boy scout" in all of this.

Share this post


Link to post
Share on other sites
4 hours ago, JW Insider said:

but we can see the roots go a lot farther back into the 1980's.

Doesn’t this correspond with the end of the stable job?

When one can be downsized or “rightsized” at the drop of a pin, and thereafter find that the next job necessitates a move, a non-movable house becomes a hassle.

Share this post


Link to post
Share on other sites
25 minutes ago, TrueTomHarley said:

Doesn’t this correspond with the end of the stable job?

Yes, that has to be a big part of it. But we also have to look at why the stable job ended.

There are a lot of historical factors surrounding the issues. Too many to try to pin it on any one thing, of course. But this was definitely one of the important points.

Ayn Rand and her student, Alan Greenspan, and Ronald Reagan's crew combined during this period to convince "the 99" percent that it really doesn't matter what the rich do, or where they move their factories, or how much pay a CEO needs, or how much greed their decisions can reveal, because "the little dogs will eat the scraps from the rich man's table." (Trickle down economics.) After Ike's tax rates were dismantled, and Kennedy's accepted a Keynesian economic cure-all, Reagan and conservatives like him (Thatcher, too) saw a chance to push an economic agenda that allowed a free-for-all for the lifestyles of the rich, at the expense of the working poor (who had once been candidates for a true middle class) 

A good portion of  middle class and expected-to-be middle class fell for the propaganda, and didn't realize that it was already making the old house-dependent "American Dream" less and less viable. And now, with common sense regulations gone, there was a 1 percenter at the top of every business chain whose new goal was to see how much Americans would give up without really noticing. And after that, how much could they be tricked into giving up, even if they did notice it.

And it wasn't just Reagan, it was Bush, Clinton, Bush, and Obama, etc. Every one of them did more and more harm to the working poor and middle class.

Owning a house is no longer as important as a component of the American Dream now that it can no longer be seen as an appreciating asset. And the prices are purposely set to be nearly out of reach for most. The same thing happened with the price of a university education, health care, medicine, credit cards, etc. And the wage of the average worker got cut when we average in the number of hours worked, hours available, lay-offs, furloughs, switch from salary to no-benefit part-time, etc.

Well, I seem to be on a rant of sorts. So I'll pick this up later to read other person's comments.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Forum Statistics

    61,675
    Total Topics
    114,478
    Total Posts
  • Member Statistics

    16,505
    Total Members
    1,592
    Most Online
    Leander H. McNelly
    Newest Member
    Leander H. McNelly
    Joined




×
×
  • Create New...

Important Information

Terms of Service Confirmation Terms of Use Privacy Policy Guidelines We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.