Quote:
Originally Posted by Handro
I think it has less to do with lack of interest and more to do with stagnant wages, obscene debt, and rising COL, but I digress.
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Also has a lot to do with the complex relationship between Millenials and their Boomer parents. Much of the housing market right now is being distorted by the fact that Boomers are the largest generation prior to Millenials. The Boomers are also by far the healthiest generation at their age yet (despite the trend of dropping life expectancy here in the US due to epidemics of obesity and opiods). Many of them also experienced economic trauma alongside their children as they saw retirement plans dashed and careers disrupted in their highest paying years. Therefore Boomers just aren't getting out of the way like prior generations have moving toward their retirement. This manifests itself in the labor market in the same way as it does in the real estate market. There was just a Tribune piece on this the other day:
https://www.chicagotribune.com/real-...623-story.html
The other thing this article doesn't highlight as much is that Boomers are also more apt to move into areas that are also hot with Millenials like urban cores when they do decide to downsize.
Quote:
Originally Posted by Skyguy_7
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Yes, wage growth is finally breaking out. Again, these trends have a lot to do with the distortions of the recession, but primarily in it's effects on Millenials and Boomers. The Boomers aren't retiring as early as prior generations as they enjoy longer good health, try to make up for lost years of productivity or savings in the recession.
Quote:
Originally Posted by Handro
3% wage growth for a couple of years isn't enough to change a decade+ trend that has led to the current lack of major purchases by 25-35 year olds. And is that slight wage growth enough to keep pace with rising costs of just about everything?
https://www.investopedia.com/ask/ans...-years-ago.asp
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As I mention above, Millenials are still being effected by the elongated lives and careers of their parents. Millenials stand to quickly advance in their careers once Baby Boomers get out of the way, but the all seem to be staying put as long as possible.
The other thing people don't appreciate is that the United States is about to start the largest transfer of wealth in history: Boomers leaving their estates to Millenials. In another 10-20 years when Boomers start passing on in large numbers, Millenials stand to inherit more wealth than any generation in history. The question is whether that will make up for the damage of student loans and the recession or whether it will just further enhance widening wealth disparity.