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The Next Generation of Homebuyers

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June 02, 2010 – Comments (3)

Just read a good article pointing out the poor prospects of the next generation buying homes.

Today's youth is coming to the workforce with massive debt from student loans and poor job prospects.  The job prospects they face make it tough to make ends meet without having to pay off massive debt, let alone save for a down payment.

Not in the article is also consider that taxes will likely be higher for this generation as all levels of government are grossly in debt and many of the services and support systems we take for granted have not been paid for, but simply deferred through borrowing.

3 Comments – Post Your Own

#1) On June 03, 2010 at 12:20 AM, ChrisGraley (29.97) wrote:

I totally agree dwot! The up and coming generation is going to suffer much more than any previous generation, because they are following the path of their idiot parents and unfortunately, that lifestyle isn't sustainable. An upside is that their kids will be the most level headed generation that we've seen in a long time, but I hate to see kids suffer because they were born from idiots.

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#2) On June 03, 2010 at 1:05 AM, MikeMark (29.58) wrote:

Yep. It'll be tough for those who have already spent or are spending a fortune to get an education.

But think about this: for that number who have been or are frugal and inventive there will be the reward of lower cost housing for them.

In the end, there are two really good trends that will occur: first, people will learn to be frugal and cautious; second, the cost of things people need (including homes) will come down due to lower demand. That sounds very deflationary.

Even though propaganda and poor education tend to make people believe that deflation is bad, it isn't. It's great for hard working earners and savers. Even if their wage rates decline, deflation means that the cost of living goes down. Nothing bad about that, just not what we've been used to.

However, it's certainly not what undercapitalized fractional reserve banks want. They will probably try to fight it with continued low interest rates.

Too bad, as I watch the continuing plane wreck it's like the pilot and co-pilot are doing everything they can to make it worse for the passengers. They don't seem to realize that they are in it together.

This is all the process of a new generation learning to watch out for themselves. I'm looking for a resurgence of the watch-words of these trends: caveat emptor!

-MikeMark

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#3) On June 08, 2010 at 6:54 PM, smartmuffin (< 20) wrote:

I am in my early 20s and would consider myself part of this "next generation" and my response to this would be.... good.  I joined the military out of high school because I didn't feel like saddling myself with debt.  My friends all laughed for four years while I was engaged in menial labor for roughly minimum wage and they were drinking and partying and fraternizing every night.  I was routinley laughed out of any political debate for being too "stupid" to understand that massive debt and ridiculously high taxes were a great thing that benefits society.  Can't wait for all my peers to have to deal with the consequences of their actions.  For most of them, it'll be the first time.

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