Young people are not starting their own households like we did. We bought two home in our 20's. One we fixed up and sold, then bought a new model home within just a couple years of each other.
What's diffrent between then and now?
There is a lot of apartment/condo construction but not a whole lot of house building. We had a lot of homes to choose from, new inventory was high and that kept prices affordable.
The same just isn't true today. It's a hard time to start a new household. That's going to be a punch in the nose to our economy. It doesn't matter who is in power, it doesn't matter how well the stock market is doing, or how low unemployment is. GET YOUNG PEOPLE OUT OF THE NEST.
If they feel insecure about doing that due to financial reasons, new housing starts will remain low.
We have brand new neighbors. Paid $500k for a home in my book isn't worth $200k. Middle aged. In two months I have seen them a total of 6 seconds. She works out of town days at a time. He stays home with a large dog and never comes out. We think they must be on the witness protection program. Just so strange. This is not typical.
"Why the Housing Market Is Still Stalling the Economy"
http://www.nytimes.com/2014/04/27/upshot/the-housing-market-is-still-holding-back-the-economy-heres-why.html?action=click&module=Search®ion=searchResults&mabReward=relbias%3As%2C%5B%22RI%3A2%22%2C%22RI%3A3%22%5D&url=http%3A%2F%2Fquery.nytimes.com%2Fsearch%2Fsitesearch%2F%3Faction%3Dclick%26region%3DMasthead%26pgtype%3DHomepage%26module%3DSearchSubmit%26contentCollection%3DHomepage%26t%3Dqry964%23%2FNeil%2Birwin%2F
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