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Generation X- The Recession's Lost Generation of Homeowners
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2014 Oct 30, 3:06am 12,808 views 30 comments
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Tenpoundbass
2014 Oct 30, 3:34am
News flash Randall!
The only demographic that has been buying houses has been the investor class.
I'm sure if you were to slice and dice that demographic up it would be all over the place. But then again if they did that, then they would have to be honestly reporting the reality of the median sold price. As investors have been buying 20 to 1 houses over the last 8 or so years. And haven't paid anywhere near the official median price, which seems to only track Mortgages and not actual real estate prices.
Vicente
2014 Oct 30, 3:40am
Lost? Or delayed?
Just issue them free reign to unplug their elders from life support, and they'll be set.
HydroCabron
2014 Oct 30, 4:17am
Feed them just enough to preserve their organs for harvesting.
Anyone not making a mortgage payment is just a canister holding David Crosby's next liver.
Dan8267
2014 Oct 30, 4:46am
Using the same demographic-baseline analysis, the 2013 homeownership rate for 35-54 year-olds is below the “demographic baseline†(which barely budged over the past 20 years for this age group).
Sorry, I was told in 2005 to 2007 to buy now or forever be priced out. I didn't buy then.
If the real estate industry wants to sell houses and make commissions, then they need to lower the prices to pre-bubble levels. Take for example, this piece of shit that's worth maybe $150k but has an asking price of $549,000. Only an idiot would pay even half of that.
The last time that crap house sold was in December 1997 for $151k right before the bubble started. Now the house is 17 years older. All the plumbing, electrical work, insulation, a/c, appliances are 17 years older and worn down. Yet the sellers think they can get over half a million for it.
Delusional prices like that only serve to stop potential buyers from even looking.
Indiana Jones
2014 Oct 30, 11:54am
As a Gen Xer from the Bay Area, most of my "middle class" friends who own homes are struggling. Things such as being underwater and unable to sell, losing jobs, getting pay cuts or getting jobs at lower salaries than previously, having to rely on credit cards to get by, short selling homes, foreclosing, cashing out 401Ks to get by, etc. The rest just never bought and are now unable to pay the high prices, despite working their butts off.
The only ones not struggling bought before 2004, have had financial assistance from family, or have taken over their parents home.
Strategist
2014 Oct 30, 1:05pm
The last time that crap house sold was in December 1997 for $151k right before the bubble started. Now the house is 17 years older. All the plumbing, electrical work, insulation, a/c, appliances are 17 years older and worn down. Yet the sellers think they can get over half a million for it.
Delusional prices like that only serve to stop potential buyers from even looking.
Guess you have never seen a Chinese make an offer.
Hey, that price seems pretty reasonable to me. It's a house, not a garage.
MisdemeanorRebel
2014 Oct 30, 3:28pm
The last time that crap house sold was in December 1997 for $151k right before the bubble started. Now the house is 17 years older. All the plumbing, electrical work, insulation, a/c, appliances are 17 years older and worn down. Yet the sellers think they can get over half a million for it.
The big laugh is when you see condos that sold for $110k in 2009... and now the flipper wants $180k for them now, even though the only thing they did was get rid of the 1970 Kitchen appliances and replace them with entry level Home Depot ones, maybe $2000 for the fridge and dishwasher. The wall-to-wall mirrors, wallpaper, kitchen cabinet faces and general Bronx Baroque retired-NY'er trappings of 1970's South Florida Condo is still there.
Ceffer
2014 Oct 30, 4:12pm
On the other hand, advancements in basement technology have been startling.
New Renter
2014 Oct 31, 12:59am
As a Gen Xer from the Bay Area, most of my "middle class" friends who own homes are struggling. Things such as being underwater and unable to sell, losing jobs, getting pay cuts or getting jobs at lower salaries than previously, having to rely on credit cards to get by, short selling homes, foreclosing, cashing out 401Ks to get by, etc. The rest just never bought and are now unable to pay the high prices, despite working their butts off.
The only ones not struggling bought before 2004, have had financial assistance from family, or have taken over their parents home.
Your friends must not be in "tech".
HydroCabron
2014 Oct 31, 1:42am
APOCALYPSEFUCKisShostikovitch says
The banks don't have to put up with your shit. You fucking pay what we and the NAR tell you
This is so simple to understand, yet people complain about it.
The banks and the NAR worked harder than the rest of us, and now they will collect their due. It's their right.
Things such as being underwater and unable to sell, losing jobs, getting pay
cuts or getting jobs at lower salaries than previously, having to rely on credit
cards to get by, short selling homes, foreclosing, cashing out 401Ks to get by,
etc. The rest just never bought and are now unable to pay the high prices,
despite working their butts off.
They should go to a college town bar on a thursday night, have a couple of long island iced teas, ruminate about the housing market, then sleep it off and forget about it.
Tenpoundbass
2014 Oct 31, 1:57am
As a Gen Xer from the Bay Area, most of my "middle class" friends who own homes are struggling. Things such as being underwater and unable to sell, losing jobs, getting pay cuts or getting jobs at lower salaries than previously, having to rely on credit cards to get by, short selling homes, foreclosing, cashing out 401Ks to get by, etc. The rest just never bought and are now unable to pay the high prices, despite working their butts off.
The Generation X, my Generation were a bunch of pompous materialistic asses. Don't forget we swooned over Madonna when she sang "Material Girl".
We longed for $30,000 sports cars, that more sensible people considered ridiculously expensive. They didn't want to buy a resale in established neighborhoods, they had to live in newly developed gated communities with HOA fees on top of paying more for Utilities and Taxes.
Yeah everyone of those Assholes that I have known that bought those big expensive houses when there were in the 20s or 30s and we thought they were really on the ball. All lost their houses, and do menial jobs that doesn't produce the income no where near what they were making back then.
I have friends who bought in modest neighborhoods in the late 80's or 90's and they are still in those houses or own them still and rent them out.
That's why when I bought, I intentionally bought with in a mortgage that couple could swing working two full time minimum wage jobs(if there is such a thing), and not depend lock my finances into a situation that depends on a Salary that people typically make through out their career on in a ten year window tops. Before they lose their marketability or their business Paradigm changes on them making them irrelevant.
Peter P
2014 Oct 31, 2:18am
I definitely think homes are overpriced in the Bay Area.
However, I don't think the Gen-X-ers are suffering as homeowners. Among my Gen-X friends, I am the only one who does not own multiple homes.
Indiana Jones
2014 Oct 31, 3:18am
Your friends must not be in "tech".
Out of my old school friends, some of them do work for tech. One of them had an unbearable IT govt. job and last year went to a private tech company with a $50k pay cut. Their family is facing default on the short sale house they bought in 2008, even after cashing out one of their 401Ks. Ouch that hurts. Other techie friends are renting.
I live in Marin now and most Gen-Xers own here, but many of them are not from the Bay Area, and most of them do have at least one spouse working in Tech or Finance. The story I hear here in Marin often is parents helped out with the downpayment.
However, I don't think the Gen-X-ers are suffering as homeowners. Among my Gen-X friends, I am the only one who does not own multiple homes.
I don't know where you live, but the only Bay Area people I know who have multiple homes are Boomers or Silent Generation. The most I've personally seen with a Gen Xer is a time share. (of course I don't run with the rich crowd -- I am talking middle class -- I am sure it is different in more elite circles)
Peter P
2014 Oct 31, 3:21am
I don't know where you live, but the only Bay Area people I know who have multiple homes are Boomers or Silent Generation.
I live in the Bay Area, of course. My Gen-X-er friends are in their 30's and 40's.
And they are all solidly in the middle-class.
Indiana Jones
2014 Oct 31, 3:24am
The Generation X, my Generation were a bunch of pompous materialistic asses. Don't forget we swooned over Madonna when she sang "Material Girl".
Let's not forget Madonna is a Boomer. Yes, I was a teenage getting told over and over on the radio and TV that we were living in a "material world", by Boomers driving around in their BMWs and their 4 bedroom homes. We were also told our standard of living was supposed to be better than our parents. I think a lot of Gen Xers are still trying to make that happen, against all odds.
Indiana Jones
2014 Oct 31, 3:25am
ive in the Bay Area, of course.
Well then, we must be traveling in different circles then. Are your friends techies, finance, or other professions?
Peter P
2014 Oct 31, 3:28am
Well then, we must be traveling in different circles then. Are your friends techies, finance, or other professions?
Mostly technology, but not necessarily as techies.
Peter P
2014 Oct 31, 3:37am
We were also told our standard of living was supposed to be better than our parents.
Well, some people think being zombied by smartphones is an improvement.
Indiana Jones
2014 Oct 31, 3:43am
Mostly technology, but not necessarily as techies.
My friends are of many different professions - architects, social workers, graphic artists, artists, alternative medicine practitioners, psychotherapists, landscape designers, personal chefs, fitness instructors, etc. and it is harder as the salaries tend to be lower than in tech companies and it is challenging to keep up with the cost of living here, though everyone's experience is different. My observation is that overall in the Bay Area, if you are working in a finance or tech company, depending on your life circumstances and salary, it usually means it is a bit easier to get by. That and government jobs.
Peter P
2014 Oct 31, 3:46am
My observation is that overall in the Bay Area, if you are working in a finance or tech company, depending on your life circumstances and salary, it usually means it is a bit easier to get by. That and government jobs.
Perhaps.
The Valley economy is highly cyclical. It turns out that older Gen-X-ers are doing far better than many boomers.
turtledove
2014 Oct 31, 4:13am
In larger-city medicine, the boomers own many of the practices that they are now selling to hospital corporations. Older gen x-ers had a chance at partnership, but the younger ones will have little choice but to be employed physicians. They won't be poor, but the option to hang one's shingle on the door and have one's own business (where partnership positions are bought into) is disappearing fast. Anyway, it used to be a common career path for doctors that probably won't exist for younger generations. Young adults thinking about medicine right now should probably run the other way. They will likely pay more than any previous crop of MDs for their education and they will definitely earn considerably less.
Tenpoundbass
2014 Oct 31, 5:29am
Young adults thinking about medicine right now should probably run the other way. They will likely pay more than any previous crop of MDs for their education and they will definitely earn considerably less.
Well let's not forget being a Doctor is so easy an Indian can do it.
New Renter
2014 Oct 31, 5:34am
Well then, we must be traveling in different circles then. Are your friends techies, finance, or other professions?
Mostly technology, but not necessarily as techies.
And there you have it.
REpro
2014 Oct 31, 6:03am
The Valley economy is highly cyclical
Can be highly cyclical. After 2001 my rent dropped by 20% over two years period and driving 85 north to Mountain View was without any traffic.
Some R&D and offices are still empty as of today.
Peter P
2014 Oct 31, 6:05am
The Valley economy is highly cyclical
Can be highly cyclical. After 2001 my rent drop by 20% over two years period and driving 85 north to Mountain View was without any traffic.
Yep. :-)
Life is a dramatic tragedy.
New Renter
2014 Oct 31, 6:17am
The Valley economy is highly cyclical
Can be highly cyclical. After 2001 my rent dropped by 20% over two years period and driving 85 north to Mountain View was without any traffic.
Some R&D and offices are still empty as of today.
Which is why 2017 can't come fast enough...
REpro
2014 Oct 31, 6:55am
Today tech is mostly in software. Yes, brings some fun and convenience to life and eliminates some old fashioned jobs, but do not push society to the higher standard of living as used to be.
I see artificially happy faces only on pictures but NOT on streets.
Peter P
2014 Oct 31, 7:10am
I see artificially happy faces only on pictures but NOT on streets.
I bet there is an app for that! :-)
Bubbabeefcake
2014 Oct 31, 7:51am
With home ownership at historical all time lows, the last bastion of hope for NARs R.E. Hustle is Mell Watts......other than that , housing's toast!
http://www.trulia.com/trends/2014/07/recessions-lost-generation/
Worry Instead About Middle-Aged Homeownership
"Here’s the surprise: it’s the middle-aged, not millennials, whose homeownership rate today looks lower than before the bubble. Using the same demographic-baseline analysis, the 2013 homeownership rate for 35-54 year-olds is below the “demographic baseline†(which barely budged over the past 20 years for this age group). Furthermore, homeownership for the middle-aged has not yet begun to turn around as of 2013, unlike for millennials:
Whereas the 2013 homeownership rate for millennials, after adjusting for demographics, is at 1997 levels, the 2013 demographics-adjusted homeownership rate for the middle-aged is at its lowest level in at least two decades (and probably in almost four decades: see note #6).
To see why homeownership is now lagging more among the middle-aged, we repeated the demographic-baseline analysis for five-year age bands. In 2005, the year when the true homeownership rate peaked for most age groups, 25-29 year-olds were the age group for which homeownership was highest relative to the demographic baseline, followed by 30-34 year-olds. These were first-time home-buyers getting easy credit for overpriced homes; then, they bore the brunt of the foreclosure crisis, losing their homes and wrecking their credit history. Eight years later, in 2013, 35-39 year-olds were the age group where homeownership was lowest relative to their demographic baseline; homeownership among 40-44, 45-49, and 50-54 year-olds was also low relative to baseline. Of course, 25-29 or 30-34 year-olds in 2005 grew into 35-39 year-olds in 2013: they are essentially the same people, eight years older.
And that’s the point: the rise and fall of homeownership during the housing bubble and bust is about people who are middle-aged today. The millennial generation was still in their early 20s or younger in the mid-2000s – too young to have bought during the bubble and then to have suffered a foreclosure: Only the oldest among the 18-34 year-old group in 2013 would have been of home-buying age during the bubble.
Turning more millennials into homeowners, therefore, may not be the missing piece of the housing recovery after all. Long-term demographic changes mean that homeownership among young adults is roughly where it should be. The real missing homeowners are the middle-aged."
Also see this article:
http://www.theatlantic.com/business/archive/2014/10/homeownership-is-historically-weakdont-blame-millennials/382010/
"But there's another cohort turning away from homes even faster—Gen-X. That's right, Americans between 35 and 44 have had the sharpest drop in homeownership since the recession struck, far outpacing the national rate. "
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