This document discusses how millennials are poised to have a major impact on the housing market as the largest generation. Despite challenges from student debt and the recession, millennials are now starting to form new households and purchase homes in large numbers. As their financial situations continue improving and they seek the stability of homeownership, millennials will drive increased demand for single-family homes and developed residential land over the next 5-10 years.
Even if enough time has passed since a foreclosure, many lenders are loath to make loans to borrowers with any blemish on their credit history. The average credit score on purchase mortgage loans sold to Fannie Mae last year was close to 745. In a more typical housing market, like that prior to the housing bubble, the average score was closer to 715. This 30-point difference represents several
million potential homebuyers.
Shawn Kormondy of Kelller Williams Realty and REIS GROUP, Inc. present "This Month in Real Estate, September 2009. This report features interesting data on who is buying, what those people are buying and how they are funding the purchase.
There has been a change in the demographics of first time home buyers. They are no longer only young newlyweds, but almost 40% of new buyers are single.
The purpose of this presentation is to provide an overview of the U.S. residential housing market for the second quarter of 2018. An overview of the State of the Nation's Housing by the Joint Center for Housing Studies of Harvard University is covered in this presentation.
Even if enough time has passed since a foreclosure, many lenders are loath to make loans to borrowers with any blemish on their credit history. The average credit score on purchase mortgage loans sold to Fannie Mae last year was close to 745. In a more typical housing market, like that prior to the housing bubble, the average score was closer to 715. This 30-point difference represents several
million potential homebuyers.
Shawn Kormondy of Kelller Williams Realty and REIS GROUP, Inc. present "This Month in Real Estate, September 2009. This report features interesting data on who is buying, what those people are buying and how they are funding the purchase.
There has been a change in the demographics of first time home buyers. They are no longer only young newlyweds, but almost 40% of new buyers are single.
The purpose of this presentation is to provide an overview of the U.S. residential housing market for the second quarter of 2018. An overview of the State of the Nation's Housing by the Joint Center for Housing Studies of Harvard University is covered in this presentation.
2018 State of Hispanic Homeownership Report by NAHREP GREATER LAS VEGAS Jesse B. Lucero
NAHREP has released its 9th annual State of Hispanic Homeownership Report. In addition to the regular analysis on homeownership trends, this year’s report also includes recommendations on marketing strategy to more effectively reach the Hispanic consumer. Get your copy today!
TRREB reported 4,581 home sales in January 2020 – up by 15.4 per cent compared to January 2019 and up by 4.8 per cent compared to December 2019.
“Steady population growth, low unemployment and low borrowing costs continued to underpin substantial competition between buyers in all major market segments,” said TRREB President Michael Collins.
The average selling price in January was up by 12.3 per cent, driven by the detached houses & condominium apartments.
Weichert, Princeton January Market Recap & ForecastWeichert Realtors
Want your Phd in Princeton area real estate? Have a look at some of the most detailed data on the Mercer, Middlesex and Somerset County real estate markets. Whether you are buying or selling this will give you insight into both.
Northeast Ohio homeowners guide to the local real estate market. This report covers home sales and price trends for the Greater Cleveland area suburbs and housing market performance trends for past several years through 1Q, 2015. Recommendations for owners looking to sell their home to get the best price in the current market.
With a population of 3.1 million, Utah pales in comparison with California, which has over 38 million residents. But the Beehive State isn’t backing down. It is currently the nation’s fastest-growing state, according to the U.S. Census. From 2015 to 2016, the population grew 2 percent, beating the national average of 0.7 percent.
Annie Williams Real Estate Report - June 2020Jon Weaver
Sales of single-family, re-sale homes tanked, again, in May compared to last year. Home sales were down 56.5%. There were 104 homes sold in San Francisco last month. The average since 2000 is 214. We expect home sales to continue dropping for the next two months.
https://journalistethics.com/
Free book available at this link
Coronavirus Corona Virus COVID-19 COVID19
Flu Influenza Virus Pandemic
Xi Jinping China Wuhan Province Italy Iran Donald Trump
CDC Center for Disease Control Pandemic
Annie Williams Real Estate Report - July 2020Jon Weaver
Sales of single-family, re-sale homes jumped in June, rising 56.7% from May. They were down 14.2% year-over-year. There were 163 homes sold in San Francisco last month. The average since 2000 is 214. Year-to-date, home sales are down 29.8%. Condo sales are down 36.9%.
According to mobility data compiled and published by the United States Census Bureau, around 32 million Americans moved house in 2018 - that’s about 10% of the entire U.S. population. And with so many people on the move, it’s clear that things are in constant motion, always changing and forming fascinating population migration patterns that cannot possibly go unnoticed.
As you can expect, the year 2019 did not only follow the moving trends set by the previous year - instead, it also left its historic mark with numerous unique stats and facts about the moving industry.
Now, let’s take a closer look at what 2019 had to offer in terms of moving facts and statistics - the 2019 moving industry trends in the USA that are set to continue in 2020 as well.
A Millennial’s Guide to Homeownership | KM Realty Group Chicago, ILTammy Jackson
This is a content-packed guide that offers powerful marketing materials to share with your clients, while also helping you simply and effectively explain the market’s current homeownership opportunities to a booming demographic that often finds itself stuck in the rental trap.
✔️ We Make Real Estate Buying and Selling Easy.
✔️ https://kmrealtygroup.net/
✔️ Let's connect with a real estate professional to discuss your home buying or selling process. ✔️ https://bit.ly/connect-km-realty
A Millennial’s Guide to Homeownership
This is a content-packed guide that offers powerful marketing materials to share with your clients, while also helping you simply and effectively explain the market’s current homeownership opportunities to a booming demographic that often finds itself stuck in the rental trap. Learn More
20 THE NEW” HOUSING AND MORTGAGE MARKET SPRING 2016The .docxlorainedeserre
20 THE “NEW” HOUSING AND MORTGAGE MARKET SPRING 2016
The New Housing
and Mortgage Market
DOUGLAS DUNCAN
DOUGLAS DUNCAN
is chief economist and
a senior vice president
at Fannie Mae in
Washington, DC.
[email protected]
com
O
ne hears various individuals
ask whether the housing and
mortgage markets are back to
“normal,” or perhaps they con-
jecture that the markets are, in fact, back to
“normal.” Of course, that question implies an
understanding of what constitutes “normal.”
Others suggest there is a “new normal,”
which indicates a view that what was, is no
longer, and that the market has somehow
permanently changed. We will explore that
dichotomy of views in this brief article.
Our primary interests in this article
are in the production and delivery of and
investment in mortgage-related assets as well
as exploring what has changed and what the
future looks like in this market. Because the
number and volume of those assets are deriv-
ative of the underlying real estate, we will
also brief ly describe the U.S. demographic
profile that will drive demand for places to
live. People live in residences that they own
or rent and both are f inanced, so we will
comment on both types of property and what
brings people to live in one or the other.
Finally, we will offer a perspective on what
this means for mortgage asset volumes.
The next subject we will comment
upon is the organization of firms that make
mortgage loans to consumers in the primary
market. A number of post-crisis economic
and policy forces have been acting on these
f irms and changing the opportunities and
constraints they face. The environment has
altered the product set they offer. We offer
a view of how the demographic factors and
the implied potential mortgage-related asset
volumes might look going forward and how
they are likely to impact the number and type
of firms operating in the primary market.
The number and nature of firms oper-
ating in the secondary market have changed
significantly, as well. From a policy perspec-
tive, however, this is the area of least progress.
Irrespective of the lack of legislated change,
there are changes taking place in the sec-
ondary market under the direction of the
conservator.1 The primary market has seen
a shift of volume between traditional f irm
types, but the secondary market awaits poten-
tially greater structural change. This change
includes the mix of investors who ultimately
hold the mortgage assets as well as the types
of assets available to be held.
Much of the change to be discussed is
a result of the policy reaction to the housing
recession. The policy changes were both
monetary and fiscal. The drivers of change
also include what might be called the evo-
lutionary aspects of any market, perhaps
enabled in this case by technologic advance-
ment. We will not discuss the causes of the
recession but rather focus on the changes
wrought by the policy response to it. Not
all ...
20 THE NEW” HOUSING AND MORTGAGE MARKET SPRING 2016The .docxnovabroom
20 THE “NEW” HOUSING AND MORTGAGE MARKET SPRING 2016
The New Housing
and Mortgage Market
DOUGLAS DUNCAN
DOUGLAS DUNCAN
is chief economist and
a senior vice president
at Fannie Mae in
Washington, DC.
[email protected]
com
O
ne hears various individuals
ask whether the housing and
mortgage markets are back to
“normal,” or perhaps they con-
jecture that the markets are, in fact, back to
“normal.” Of course, that question implies an
understanding of what constitutes “normal.”
Others suggest there is a “new normal,”
which indicates a view that what was, is no
longer, and that the market has somehow
permanently changed. We will explore that
dichotomy of views in this brief article.
Our primary interests in this article
are in the production and delivery of and
investment in mortgage-related assets as well
as exploring what has changed and what the
future looks like in this market. Because the
number and volume of those assets are deriv-
ative of the underlying real estate, we will
also brief ly describe the U.S. demographic
profile that will drive demand for places to
live. People live in residences that they own
or rent and both are f inanced, so we will
comment on both types of property and what
brings people to live in one or the other.
Finally, we will offer a perspective on what
this means for mortgage asset volumes.
The next subject we will comment
upon is the organization of firms that make
mortgage loans to consumers in the primary
market. A number of post-crisis economic
and policy forces have been acting on these
f irms and changing the opportunities and
constraints they face. The environment has
altered the product set they offer. We offer
a view of how the demographic factors and
the implied potential mortgage-related asset
volumes might look going forward and how
they are likely to impact the number and type
of firms operating in the primary market.
The number and nature of firms oper-
ating in the secondary market have changed
significantly, as well. From a policy perspec-
tive, however, this is the area of least progress.
Irrespective of the lack of legislated change,
there are changes taking place in the sec-
ondary market under the direction of the
conservator.1 The primary market has seen
a shift of volume between traditional f irm
types, but the secondary market awaits poten-
tially greater structural change. This change
includes the mix of investors who ultimately
hold the mortgage assets as well as the types
of assets available to be held.
Much of the change to be discussed is
a result of the policy reaction to the housing
recession. The policy changes were both
monetary and fiscal. The drivers of change
also include what might be called the evo-
lutionary aspects of any market, perhaps
enabled in this case by technologic advance-
ment. We will not discuss the causes of the
recession but rather focus on the changes
wrought by the policy response to it. Not
all.
2018 State of Hispanic Homeownership Report by NAHREP GREATER LAS VEGAS Jesse B. Lucero
NAHREP has released its 9th annual State of Hispanic Homeownership Report. In addition to the regular analysis on homeownership trends, this year’s report also includes recommendations on marketing strategy to more effectively reach the Hispanic consumer. Get your copy today!
TRREB reported 4,581 home sales in January 2020 – up by 15.4 per cent compared to January 2019 and up by 4.8 per cent compared to December 2019.
“Steady population growth, low unemployment and low borrowing costs continued to underpin substantial competition between buyers in all major market segments,” said TRREB President Michael Collins.
The average selling price in January was up by 12.3 per cent, driven by the detached houses & condominium apartments.
Weichert, Princeton January Market Recap & ForecastWeichert Realtors
Want your Phd in Princeton area real estate? Have a look at some of the most detailed data on the Mercer, Middlesex and Somerset County real estate markets. Whether you are buying or selling this will give you insight into both.
Northeast Ohio homeowners guide to the local real estate market. This report covers home sales and price trends for the Greater Cleveland area suburbs and housing market performance trends for past several years through 1Q, 2015. Recommendations for owners looking to sell their home to get the best price in the current market.
With a population of 3.1 million, Utah pales in comparison with California, which has over 38 million residents. But the Beehive State isn’t backing down. It is currently the nation’s fastest-growing state, according to the U.S. Census. From 2015 to 2016, the population grew 2 percent, beating the national average of 0.7 percent.
Annie Williams Real Estate Report - June 2020Jon Weaver
Sales of single-family, re-sale homes tanked, again, in May compared to last year. Home sales were down 56.5%. There were 104 homes sold in San Francisco last month. The average since 2000 is 214. We expect home sales to continue dropping for the next two months.
https://journalistethics.com/
Free book available at this link
Coronavirus Corona Virus COVID-19 COVID19
Flu Influenza Virus Pandemic
Xi Jinping China Wuhan Province Italy Iran Donald Trump
CDC Center for Disease Control Pandemic
Annie Williams Real Estate Report - July 2020Jon Weaver
Sales of single-family, re-sale homes jumped in June, rising 56.7% from May. They were down 14.2% year-over-year. There were 163 homes sold in San Francisco last month. The average since 2000 is 214. Year-to-date, home sales are down 29.8%. Condo sales are down 36.9%.
According to mobility data compiled and published by the United States Census Bureau, around 32 million Americans moved house in 2018 - that’s about 10% of the entire U.S. population. And with so many people on the move, it’s clear that things are in constant motion, always changing and forming fascinating population migration patterns that cannot possibly go unnoticed.
As you can expect, the year 2019 did not only follow the moving trends set by the previous year - instead, it also left its historic mark with numerous unique stats and facts about the moving industry.
Now, let’s take a closer look at what 2019 had to offer in terms of moving facts and statistics - the 2019 moving industry trends in the USA that are set to continue in 2020 as well.
A Millennial’s Guide to Homeownership | KM Realty Group Chicago, ILTammy Jackson
This is a content-packed guide that offers powerful marketing materials to share with your clients, while also helping you simply and effectively explain the market’s current homeownership opportunities to a booming demographic that often finds itself stuck in the rental trap.
✔️ We Make Real Estate Buying and Selling Easy.
✔️ https://kmrealtygroup.net/
✔️ Let's connect with a real estate professional to discuss your home buying or selling process. ✔️ https://bit.ly/connect-km-realty
A Millennial’s Guide to Homeownership
This is a content-packed guide that offers powerful marketing materials to share with your clients, while also helping you simply and effectively explain the market’s current homeownership opportunities to a booming demographic that often finds itself stuck in the rental trap. Learn More
20 THE NEW” HOUSING AND MORTGAGE MARKET SPRING 2016The .docxlorainedeserre
20 THE “NEW” HOUSING AND MORTGAGE MARKET SPRING 2016
The New Housing
and Mortgage Market
DOUGLAS DUNCAN
DOUGLAS DUNCAN
is chief economist and
a senior vice president
at Fannie Mae in
Washington, DC.
[email protected]
com
O
ne hears various individuals
ask whether the housing and
mortgage markets are back to
“normal,” or perhaps they con-
jecture that the markets are, in fact, back to
“normal.” Of course, that question implies an
understanding of what constitutes “normal.”
Others suggest there is a “new normal,”
which indicates a view that what was, is no
longer, and that the market has somehow
permanently changed. We will explore that
dichotomy of views in this brief article.
Our primary interests in this article
are in the production and delivery of and
investment in mortgage-related assets as well
as exploring what has changed and what the
future looks like in this market. Because the
number and volume of those assets are deriv-
ative of the underlying real estate, we will
also brief ly describe the U.S. demographic
profile that will drive demand for places to
live. People live in residences that they own
or rent and both are f inanced, so we will
comment on both types of property and what
brings people to live in one or the other.
Finally, we will offer a perspective on what
this means for mortgage asset volumes.
The next subject we will comment
upon is the organization of firms that make
mortgage loans to consumers in the primary
market. A number of post-crisis economic
and policy forces have been acting on these
f irms and changing the opportunities and
constraints they face. The environment has
altered the product set they offer. We offer
a view of how the demographic factors and
the implied potential mortgage-related asset
volumes might look going forward and how
they are likely to impact the number and type
of firms operating in the primary market.
The number and nature of firms oper-
ating in the secondary market have changed
significantly, as well. From a policy perspec-
tive, however, this is the area of least progress.
Irrespective of the lack of legislated change,
there are changes taking place in the sec-
ondary market under the direction of the
conservator.1 The primary market has seen
a shift of volume between traditional f irm
types, but the secondary market awaits poten-
tially greater structural change. This change
includes the mix of investors who ultimately
hold the mortgage assets as well as the types
of assets available to be held.
Much of the change to be discussed is
a result of the policy reaction to the housing
recession. The policy changes were both
monetary and fiscal. The drivers of change
also include what might be called the evo-
lutionary aspects of any market, perhaps
enabled in this case by technologic advance-
ment. We will not discuss the causes of the
recession but rather focus on the changes
wrought by the policy response to it. Not
all ...
20 THE NEW” HOUSING AND MORTGAGE MARKET SPRING 2016The .docxnovabroom
20 THE “NEW” HOUSING AND MORTGAGE MARKET SPRING 2016
The New Housing
and Mortgage Market
DOUGLAS DUNCAN
DOUGLAS DUNCAN
is chief economist and
a senior vice president
at Fannie Mae in
Washington, DC.
[email protected]
com
O
ne hears various individuals
ask whether the housing and
mortgage markets are back to
“normal,” or perhaps they con-
jecture that the markets are, in fact, back to
“normal.” Of course, that question implies an
understanding of what constitutes “normal.”
Others suggest there is a “new normal,”
which indicates a view that what was, is no
longer, and that the market has somehow
permanently changed. We will explore that
dichotomy of views in this brief article.
Our primary interests in this article
are in the production and delivery of and
investment in mortgage-related assets as well
as exploring what has changed and what the
future looks like in this market. Because the
number and volume of those assets are deriv-
ative of the underlying real estate, we will
also brief ly describe the U.S. demographic
profile that will drive demand for places to
live. People live in residences that they own
or rent and both are f inanced, so we will
comment on both types of property and what
brings people to live in one or the other.
Finally, we will offer a perspective on what
this means for mortgage asset volumes.
The next subject we will comment
upon is the organization of firms that make
mortgage loans to consumers in the primary
market. A number of post-crisis economic
and policy forces have been acting on these
f irms and changing the opportunities and
constraints they face. The environment has
altered the product set they offer. We offer
a view of how the demographic factors and
the implied potential mortgage-related asset
volumes might look going forward and how
they are likely to impact the number and type
of firms operating in the primary market.
The number and nature of firms oper-
ating in the secondary market have changed
significantly, as well. From a policy perspec-
tive, however, this is the area of least progress.
Irrespective of the lack of legislated change,
there are changes taking place in the sec-
ondary market under the direction of the
conservator.1 The primary market has seen
a shift of volume between traditional f irm
types, but the secondary market awaits poten-
tially greater structural change. This change
includes the mix of investors who ultimately
hold the mortgage assets as well as the types
of assets available to be held.
Much of the change to be discussed is
a result of the policy reaction to the housing
recession. The policy changes were both
monetary and fiscal. The drivers of change
also include what might be called the evo-
lutionary aspects of any market, perhaps
enabled in this case by technologic advance-
ment. We will not discuss the causes of the
recession but rather focus on the changes
wrought by the policy response to it. Not
all.
2015 1st Quarter Stats - Brian Buffini Real Estate ReportMelissa Day
Provides information about: industry facts, mortgage statistics, distressed property stats, today's buyer, first time buyers, seller trends, consumer confidence report, buyers and the internet, today's real estate professional and why Melissa Day works by referral.
5 Reasons To Sell Your Home This WinterGina Madeya
When a homeowner decides to sell their house, they obviously want the best possible price with the least amount of hassles.
Here are five reasons listing your home for sale this winter makes sense.
If you are a homeowner looking to take advantage of your home equity by moving up to your dream home, let’s get together to discuss your options! 1-425-495-0926
It’s difficult to know when is the best time to sell, or how to get the most money for your house, but you don’t need to go through the process alone.
You may be wondering if prices are projected to rise or fall…or if you should rent your house instead of selling it. The free eGuide below will answer many of your questions and likely bring up a few things you haven’t even thought about yet.
Check it out, and feel free to get in touch if you have any questions.
Thinking about selling your Columbus Ohio area home this spring? This guide will answer a lot of questions you may have about when is the best time to sell you home, as well as who would be the best person to do that.
Thinking about selling your home yourself? Read on to see why you may be leaving money on the table by not using an agent.
Annie Williams Real Estate Report - Dec 2015Jon Weaver
Housing affordability is one area where California can expect to experience long-term pain. Statewide, the percentage of households that earn enough to purchase a median-priced home rose 34 percent in early 2015 before settling in the low
30s—down from a high of 53 percent in 2011 and 36 percent in 2014. In high-priced coastal cities, percentages have fallen into the teens and lower.
Similar to TTLC_Whitepaper_Millenials Power the Next Wave in Housing (20)
TTLC_Whitepaper_Millenials Power the Next Wave in Housing
1. IT’S COMING: THE NEXT WAVE IN
HOUSING, POWERED BY MILLENNIALS
Millennials, the 90 million people
born between 1981 and 2000, are
poised to make a major impact in
the housing market
Sponsored by The True Life Companies (TTLC)
WHITE PAPER
2. FINALLY, despite the challenges posed by
underemployment, subpar wage growth,
rising rents, and student debt, the huge
millennial generation is amassing the
necessary down payments and starting new
households. According to a Demand Institute
survey millennials will form 8.3 million new
households in the next five years. The same
survey found that 79% of millennials expect
their financial situation to improve and 74%
expect to move in the next five years.1
Currently, millennials make up 32% of home
buyers,2
and 70% of first-time home buyers,3
the largest share in both categories.
This white paper examines the trends and
how they support an emerging alternative
niche investment—land targeted for approved
residential development.
THE NEED FOR ENTITLED HOMESITES
As demand builds for suburban single-family
residences—the preferred home for 52% of
millennials who are seeking to buy or rent4
—so does demand for ready-to-build land for
residential development, known as entitled
homesites. The sponsor of this white paper,
The True Life Companies, specializes in this
market segment.
THE “RENTER GENERATION” NO MORE
Millennials have earned that label for
understandable reasons.
The great recession suppressed their earnings
and ability to save up a down payment.
Millennials are already burdened by a
higher student loan debt than any previous
generation, making it difficult to save for a
down payment. Now, however, new Freddie
Mac, Fannie Mae, and FHA loans are allowing
millennials to get mortgages with smaller
down payments and more affordable monthly
payments.5
According to the Bureau of
Labor statistics, unemployment is showing
gradual, slow improvement, going from 5.7%
in January 2015 to 5.0% in November.6
The
average hourly wage grew 2.5% from October
2014 to October 2015, the best growth rate
since the great recession.7
As the economy improves, millennials
are beginning to respond to their innate
nesting instinct: according to a study by the
National Association of Realtors, 39% of Gen
Y homebuyers (millennials) were motivated
just by “the desire to own a home of their
own.”8
The study also found that for the last
two consecutive years millennials formed the
largest group of recent buyers. Although first-
time buyers’ share of all home purchases had
slipped to 32% in 2015, historically first-time
buyers account for 40% of all home sales.9
Three-quarters of millennials and half of all
adults say they are somewhat or very likely to
move in the next five years.10
WHITE PAPER
The Los Angeles Times, February 1, 2015 quoting
Kathleen Hart, Wenatchee Washington
We were just tired of renting,
tired of sharing with roommates
and not having a place of our own.
Finally the numbers added up.”
“
3. THE LARGEST GENERATION
Millennials, or Generation Y, overtook baby
boomers in 2015 and now make up the
largest generational cohort. As the Pew
Research Center chart below indicates,
they’re projected to do so for years to come.
WHITE PAPER
OVERTOOK BABY BOOMERS IN
MILLENNIALS
2015
80
70
60
50
40
30
20
10
0
79 Million
Millennials
50 Million
18 Million
2014 2028 2036 2060
Population Projections by U.S. Generation
Note: Millennials refers to the population ages 18 to 34 as of 2015.
Source: Pew Research Center tabulations of U.S. Census Bureau population projections released December 2014.
Millennial Baby Boomer Gen X Silent
4. WHITE PAPER
Who are these millennials and how are they
different from previous generations? The
table below provides a brief definition of each
current generation. The data is derived by a
comprehensive Generational Differences Chart
developed by the Workflow Management
Coalition. There are now 87 million millennials
in the U.S. compared to 76 million baby
boomers, the next largest generational cohort.
And the most common age in America is 22,
a millennial. Millennials are far more diverse
than baby boomers. Only 56% of them are
white compared to 72% of boomers.11
Baby Boomers
1946-1964
52-69
The “Me”
generation
Civil Rights,
Vietnam War,
Cold War, Sexual
Revolution
Equal rights,
personal
gratification,
team oriented,
optimism
Generational Differences
Traditionalists
1900-1945
70+
The silent
generation
WWII, Korean War,
New Deal
Conformity, duty,
family, law and
order, patriotism
Millennials
1981-2000
16-35
Generation Y
Digitial media,
cell phones,
AIDS, terrorist
attacks, economic
expansion
Achievement,
consumerism,
confidence,
technical savvy,
advanced
education, fun
Birth years
Current age
Also known as
Influential events,
trends
Core values,
attributes
Generation X
1965-1980
36-51
Post boomers
Watergate,
Energy crisis,
environmental
awareness, dual
income families
Balance, diversity,
fun, high job
expectations,
pragmatism,
informality
5. OWNING VS. RENTING:
IT’S NOT ALL ABOUT COST
There’s a widespread perception that owning
a home is less expensive than renting.
Although it may be influencing many first-
time homebuyers, it’s a perception based on
several false assumptions. Upon close analysis
it doesn’t hold up. For one thing, costs of
renting vs. buying vary greatly by location. As
can be seen in the chart at right, in all but a
few metro markets buyers will be paying a
premium over what they’d pay in rent. For
example:
• San Francisco buyers will pay an average of
$2,556 a month more than renters
• The U.S. homebuyer will pay an average of
$146 a month more than a renter
• By contrast, a homebuyer in Tampa will pay
$125 less than a renter.
WHITE PAPER
Chart courtesy of John Burns Real Estate Consulting
6. However, cost is not the only—nor necessarily
the most influential—factor in the buy vs.
rent decision. Buyers are highly motivated by
the sheer desire to own a place of their own.
The fixed monthly payments and long-term
financial stability of home ownership are
strong attractions to millennial homebuyers.12
Not to mention the ability to deduct their
mortgage interest from their income tax,
which as renters they couldn’t do. They also
find that homes for sale are typically higher
quality than those for rent. And buyers have
the option of improving or customizing a
purchased home to satisfy themselves rather
than the landlord. They prefer homes that
aren’t “cookie cutter” and according to one
survey 30% would choose a fixer-upper over a
move-in ready home. They want homes that
are compatible with their strong interest in
technology and innovation.13
Millennial home ownership similarly varies by
location, from a low of 23% in Los Angeles,
one of the most expensive real estate markets
in the U.S., to a high of 56% in Grand Rapids,
Michigan, a far more affordable market.14
ARE FIRST-TIME BUYERS MAKING A
COMEBACK?
Historically, first-time buyers have made
approximately 40% of all home purchases.
That dropped dramatically to 33% with the
great recession, and was as low as 28% in July
2015.15
But first-time buyers may be bouncing
back. They constituted 32% of all home
buyers in August 2015. That slipped to 29% in
September but rose to over 30% in October.
Millennials comprise
68% of first-time buyers
and that percentage shows
promise to grow. A TD Bank
survey found that 67% of
millennials say they’ll be looking
to purchase their first house within
two years.16
The average age when people
get married for the first time in the U.S. is
currently 28, the high end of the millennial
age range. Sixty-five percent of older
millennials say they intend to purchase a
home in the next three months17
and have
managed to stabilize their finances by paying
down student loans and other debts.
According to realtor.com, the top 10 reasons
for home shoppers of all categories to be in
the market are:
• Increase in income (35%)
• Tired of current home (34%)
• Favorable home prices (32%)
• Favorable interest rates (28%)
• Increasing rent (22%)
• Change in family in circumstances (20%)
• Planning to increase family size (19%)
• Increase in family size (18%)18
These are reasons shared by many
millennials, who also have another overriding
reason: they’ve been waiting long enough,
and they finally have the wherewithal to buy a
“home of their own.”
WHITE PAPER
OF FIRST-TIME BUYERS ARE
MILLENNIALS
68%
7. WHITE PAPER
HOUSING’S CONTINUED EXPANSION
The coming of the millennials promises to
accelerate the momentum of an already
dynamic housing market, which has seen
significant YTD gains over last year in key
categories:19
• Existing home sales up 7.9%
• New home sales up 17.7%
• Housing starts up 12.0%
• Median home price of sold homes up 6.4%
• Home price index (FHFA) up 5.5%
• Rents (CPI) up 3.6%
People need homes, and the U.S. is
experiencing major population growth.
According to the Census Bureau, 40 million
more people are living in the U.S. today than
there were on January 1, 2000—322 million
versus 282 million. A baby is born every eight
seconds, while there is a death only every 12
seconds. An international immigrant arrives
every 33 seconds. Result? The country gains
two to three million new people a year. People
who need homes.20
MEETING THE DEMAND
The builders and developers who will be
providing homes for millennials also have a
need: entitled residential lots, or ready-to-
build land for single-family homes. Only the
largest builders and developers can afford
to maintain an inventory of entitled lots.
Other builders need to find a solid supplier
to support their business plans. That’s where
The True Life Companies (TTLC) come in. We
specialize in the types of land the changing
market seeks. Our inventory is concentrated
in suburban properties in the West, where
the greatest growth has been taking place.
In metro areas like Los Angeles, Phoenix,
Denver, the Bay Area, and Sacramento. For
investors and their advisers, TTLC represents
a niche asset class that can fill in the gaps
to help diversify and balance a portfolio. Our
carefully selected properties offer investors
both defensive and offensive attributes: capital
preservation and inflation protection as well
as asset appreciation.
Sponsored by The True Life Companies, real estate investment specialists operating in California, Arizona,
Colorado, Texas and Hawaii. For more information on our company and investment opportunities, please
visit our website: http://thetruelifecompanies.com/partnership/ or call Joe Fraser at 925.824.4303.
Please contact us if you have comments on this white paper or wish to order reprints.
Disclaimer: These materials are for informational purposes only and do not constitute an offer or solicitation to sell any securities. Offers to
sell securities will only be made to accredited investors and people qualified to purchase such securities in an offering exempt from registration
under applicable securities laws pursuant to separate confidential offering documents. Investment involves a high degree of risk including the
risk that the entire amount invested is lost. There can be no assurances The True Life Companies’ targets or investment objectives will be met.
In considering the performance of any affiliate of The True Life Companies, the reader should keep in mind that past performance of any other
affiliate of The True Life Companies is not indicative or an assurance of the future performance of any affiliate of The True Life Companies. There is
an inherent risk of loss in all investments. Past performance is no guarantee of future results.