Welcome Guest [Log In] [Register]


Reply
A new generation of young home buyers is tiptoeing into the market; "We wanted to get out of renting," Josh said. "We wanted to move toward starting a family."
Topic Started: 17 Sep 2017, 10:19 AM (690 Views)
Bardon
Default APF Avatar


The US is also experiencing a surge in first home buyers as well.

A new generation of young home buyers is tiptoeing into the market
The rental generation looks to put down roots

Posted Image

LOS ANGELES – Newly married and in their mid-20s, Josh and Kayleigh Hyink were ready for the next step in their "master plan."

So the couple ditched their $1,644 one-bedroom apartment in Orange County and this spring purchased a new $430,000 house in the farther-out Riverside County city of Murrieta, becoming homeowners for the first time.

Even though the move meant that Josh's commute to his job ballooned to 75 miles, the couple said it was worth it to get a large house — something they couldn't afford closer in. The median home price in Riverside County was $365,000 in July, compared with $690,000 in Orange County, according to CoreLogic.

"We wanted to get out of renting," Josh said. "We wanted to move toward starting a family."

The rate of first-time home buyers remains low historically, but eight years into the economic recovery, it is finally picking up, as young Americans such as the Hyinks grow more comfortable in their careers and reach an age when people tend to put down roots.

Nationally, first-time home buyers purchased 35 percent of previously owned houses and condos sold in the 12 months that ended in June 2016 — the latest data available — up from a near-record low of 32 percent in the previous 12-month period.

Still, that rate is well below the historical average of 40 percent over the last several decades, reflecting continuing obstacles, such as heavy personal debt loads and high home prices, that are preventing more young people from buying homes.

In California, the uptick is slightly more muted, given an affordability crisis that prompted Bankrate.com to label the state the toughest for first-time buyers.

In this year's second quarter, 31.7 percent of houses and condos in California were purchased by first-time buyers, according to a California Association of Realtors survey. That's up from 29.2 percent a year earlier.

But even here, developers say they are ramping up construction to cater to millennials with good jobs, who are increasingly fleeing rising rents for a locked-down mortgage payment.

"They are finally ready to buy," Skylar Olsen, a senior economist with real estate firm Zillow.

Given the high cost of housing in urban and coastal areas, many are choosing a single-family house inland.

The Hyinks said that near the coast they couldn't afford the large house they wanted for their dog and future children. In Murrieta, they have a brand-new, three-bedroom house with a three-car garage. As an added plus, they are near Temecula, where they both grew up.

"It was cool out there for a while," Kayleigh, a 26-year-old teacher, said of Orange County. "But we'd never have a yard."

Developers are rushing to fill demand from such young adults. In San Bernardino and Riverside counties, builders pulled permits are up 58 percent from a year earlier, according to data from the Census Bureau.

In more expensive Los Angeles and Orange counties, permits were down a combined 4 percent, a drop that came from multifamily construction, which is typically built in expensive urban areas and faces more pushback from existing residents.

KB Home, a national homebuilder based in Los Angeles, is selling homes in 27 developments in the Inland Empire region, compared with 18 a year earlier.

Jeff Mezger, the company's chief executive, said KB Home wants to build near the coast, but it's increasingly difficult to acquire lots there as prices have risen in the largely built-out area. Constructing homes farther out is easier, and homes are selling fast to millennial buyers, as the housing market goes through a familiar cycle.

"Demand always moves inland as the economy gets better, because people want to be a homeowner and … they get priced out," Mezger said.

Even some coastal developers are trying to offer houses at a price millennials can afford, eager to cater to a demographic that now surpasses baby boomers in sheer size and number of home sales nationwide.

In south Orange County, new neighborhoods in the master-planned Rancho Mission Viejo community are being designed specifically with millennials in mind. Most homes in the area start from the low $300,000s to $700,000s.

The homes will have a contemporary feel and residents can watch their children scamper in a designated play area, hop on a zip line or get a drink at an outdoor lounge.

Most important are the prices, which are kept on the relatively affordable end by increasing density, even for the single-family homes.

"It really all begins with getting attainable pricing," said Paul Johnson, of the Rancho Mission Viejo company, the developer of the 14,000-home master-planned community.

The developer decided to build neighborhoods designed for young home buyers about three years ago. It wanted to get ahead of what it predicted would be a wave of millennials looking for suburban homes.

The decision ran counter to the views of many pundits who predicted millennials, compared with previous generations, would forgo homeownership to rent in big cities, where developers are building apartment and condo towers in places such as downtown Los Angeles and Seattle.

http://www.startribune.com/a-new-generation-of-young-home-buyers-is-tiptoeing-into-the-market/444762873/
Edited by Bardon, 17 Sep 2017, 10:19 AM.
Profile "REPLY WITH QUOTE" Go to top
 
Ex BP Golly
Member Avatar


Stories of young people taking on $540,000 aud debts make investors go all turgid.

Poor Joshuas got to commute 130 km.

I hope it works out for them.



WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
Profile "REPLY WITH QUOTE" Go to top
 
Bardon
Default APF Avatar


Ex BP Golly
17 Sep 2017, 11:22 AM
Poor Joshuas got to commute 130 km.

I hope it works out for them.



Yes I would much rather be a first home buyer in Australia, far more bang for your buck down under.

The Coast suburb where home affordability meets growth

http://australianpropertyforum.com/single/?p=10046037&t=30140650
Profile "REPLY WITH QUOTE" Go to top
 
Rufus
Member Avatar


Bardon
17 Sep 2017, 10:19 AM
The US is also experiencing a surge in first home buyers as well.

A new generation of young home buyers is tiptoeing into the market
The rental generation looks to put down roots

Same here, the % of renters has fallen over the last couple of years.
The data supports your statement.

Posted Image
Attached to this post:
Attachments: Renters__.jpg (47.32 KB)
Edited by Rufus, 17 Sep 2017, 05:03 PM.
Take risks - if you win you will become wealthy, if you lose you will become wise
Profile "REPLY WITH QUOTE" Go to top
 
Tyson
Default APF Avatar


Ex BP Golly
17 Sep 2017, 11:22 AM
Stories of young people taking on $540,000 aud debts make investors go all turgid.

Poor Joshuas got to commute 130 km.

I hope it works out for them.



I'm curious, what do you think a young person/couple should do with a 20% deposit?

Let's say him/her/they are 24 and are currently renting, but have saved a 20% deposit. The area that they are renting is increasing in value (such as Brisbane, Melbourne, Sydney etc.).

What do you suppose they do? You seem actively against people buying a house and taking on a big mortgage. You seem actively against people buying 'over priced' homes - whether they are overpriced or not, if that's what you have to pay to get one that is the new market value. iPhones are overpriced given how much it costs to produce them and their profit margins etc, but if you want one that's the price you have to pay.

Do you think people should just keep that money in the bank, keep saving and pray for a crash? Do you think people should only buy property if they can buy a house outright even though for some people it is impossible for them to save as quickly as a ratio to housing price increases? You seem to act like you are the spokesperson for the less fortunate, yet seem to hate any system people use to get a foothold into a better life. So I'm curious to know what you think people should do with their money?

I can understand if you're against just property investors, but you seem to have a problem with these articles about first home buyers as well.
Profile "REPLY WITH QUOTE" Go to top
 
Chris
Default APF Avatar


Tyson
17 Sep 2017, 05:13 PM
I'm curious, what do you think a young person/couple should do with a 20% deposit?

Let's say him/her/they are 24 and are currently renting, but have saved a 20% deposit. The area that they are renting is increasing in value (such as Brisbane, Melbourne, Sydney etc.).

What do you suppose they do? You seem actively against people buying a house and taking on a big mortgage. You seem actively against people buying 'over priced' homes - whether they are overpriced or not, if that's what you have to pay to get one that is the new market value. iPhones are overpriced given how much it costs to produce them and their profit margins etc, but if you want one that's the price you have to pay.

Do you think people should just keep that money in the bank, keep saving and pray for a crash? Do you think people should only buy property if they can buy a house outright even though for some people it is impossible for them to save as quickly as a ratio to housing price increases? You seem to act like you are the spokesperson for the less fortunate, yet seem to hate any system people use to get a foothold into a better life. So I'm curious to know what you think people should do with their money?

I can understand if you're against just property investors, but you seem to have a problem with these articles about first home buyers as well.
Well, everyone who is objective is looking at your post and thinking 'why does this bloke care so much'?. Based on your amazing story of 'hard work', 'sacrifice' and brilliance why would you care if he convinced every lazy, no good FHB from here on out to rent forever?

Shit sock or just another desperate twat who realised that without a greater fool their going nowhere fast?! Time willl tell

Profile "REPLY WITH QUOTE" Go to top
 
Bardon
Default APF Avatar


Jesus wept, not more socks under the bed.
Profile "REPLY WITH QUOTE" Go to top
 
Ex BP Golly
Member Avatar


Tyson
17 Sep 2017, 05:13 PM
I'm curious, what do you think a young person/couple should do with a 20% deposit?

Let's say him/her/they are 24 and are currently renting, but have saved a 20% deposit. The area that they are renting is increasing in value (such as Brisbane, Melbourne, Sydney etc.).

What do you suppose they do? You seem actively against people buying a house and taking on a big mortgage. You seem actively against people buying 'over priced' homes - whether they are overpriced or not, if that's what you have to pay to get one that is the new market value. iPhones are overpriced given how much it costs to produce them and their profit margins etc, but if you want one that's the price you have to pay.

Do you think people should just keep that money in the bank, keep saving and pray for a crash? Do you think people should only buy property if they can buy a house outright even though for some people it is impossible for them to save as quickly as a ratio to housing price increases? You seem to act like you are the spokesperson for the less fortunate, yet seem to hate any system people use to get a foothold into a better life. So I'm curious to know what you think people should do with their money?

I can understand if you're against just property investors, but you seem to have a problem with these articles about first home buyers as well.
what complete drivel.

go away stupid.
Edited by Ex BP Golly, 18 Sep 2017, 06:20 AM.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
Profile "REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
DealsFor.me - The best sales, coupons, and discounts for you
« Previous Topic · Australian Property Forum · Next Topic »
Reply



Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.

Forum Rules: The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.

Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.

Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.

This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.

For more information go to Limitations on Exclusive Rights: Fair Use

Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ

Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy