Millennials : 450 weeks of work time to buy a home and live with mom

Puisque les médias du mainstream parlent très peu dans quelle merde que nous avons foutue notre jeune génération, mon blogue l’emphase.

Accéder à la propriété pour un jeune est devenu de plus en plus une illusion, avec des emplois précaires et une surévaluation des maisons grâce à des taux d’intérêts trop bas pour créer une fausse économie par endettement.

Des emplois tellement précaires et peu payants qu’ils restent à la maison, entre-temps certains papys et baby-boomers se réjouissent de vendre leurs maisons 2 à 3 fois trop cher en n’oubliant d’aider leurs enfants.

Une chance que certains parents aient encore de l’empathie pour leurs rejetons.

Deux articles, l’accessibilité pour les jeunes pour acquérir une maison et ceux qui doivent rester à la maison des parents, car, ils n’ont pas assez de revenus.

Pour les jeunes je vous conseille d’attendre, nous sommes dans une vraie bulle, quand les vieux vont avoir besoin de l’argent pour vivre à leur retraite et comme l’épargne ne rapporte plus, ils vont être obligé de vendre leurs maisons, vous allez avoir tellement de choix, que les prix des maisons vont baisser, on le constate déjà dans certaine région du Québec, et ce n’est que le début, prenez votre mal en patience.

Extrait de: You Have To Work Twice As Long As Your Parents Did To Own A House, The Huffington Post Canada, By Daniel Tenter,05/05/2016

If you suspect your parents and grandparents had an easier time buying a house than you, a new study from a University of Ottawa professor says you’re probably right.

The amount of work time it takes for a Canadian to buy a typical home has more than doubled since the 1970s, economics professor Marc Lavoie concluded in the study.

“Residential properties, with the exception of the 1988-1991 period, are now clearly less affordable for middle-class Canadians than they were for the last five decades,” he wrote.

Chart: Marc Lavoie

It now typically takes the equivalent of 420 to 450 weeks of work time, at the average weekly rate, to own a home when buying one with a mortgage. As recently as 2000, it only took around 300 weeks of work. And until the mid-1970s, it took less than 200 weeks.


“No wonder so many young prospective buyers, especially those in major cities, feel that owning a residential unit is more like a long-distance dream,” Lavoie wrote.

In weeks worked, cash prices are the worst they've ever been

The last time it took this long to pay off a mortgage on a house was the late 1980s and early 1990s, when Canada arguably experienced a housing bubble that saw house prices more than double in a short period of time.

That bubble burst when the Bank of Canada sharply raised interest rates in order to fight inflation — something that is extremely unlikely to happen today.

In terms of cash costs for buying a house, things have never been this bad. Those buying a house in cash today require the equivalent of 400 weeks of work today to pay it off, compared to 184 weeks in 1984.

Chart: Marc Lavoie

Lavoie notes it’s not just price growth that accounts for the longer time it takes to own a house — homes have been getting bigger over the years.

“Newly-built houses in 1975 had on average 1,075 square feet; in 2013 they had about 2,000 square feet,” he wrote.

“Whether current households suffer from inter-generational inequity depends on whether one believes that the average size of houses is a free individual choice or … is being imposed by the construction industry and society more generally.”

But that trend towards larger homes has reversed itself in recent years. In Toronto and Vancouver, Canada's priciest major housing markets, condos have been shrinking for years.

Lavoie argues the government has a role to play in helping Canadians afford homes — in the form of policies that grow wages.

Today’s low mortgage rates “do not compensate enough … for the high cash cost of purchasing a dwelling in Canada today,” Lavoie wrote.

“Pro-growth fiscal policies that could eventually lead to faster growth in wages, without interest rate increases, would further help in bringing mortgage costs towards cash costs.”

More Millennials Living with Mom

clip_image008Just in time for Mother's Day, new Zillow analysis finds an increase in adults living with Mom amid out-of-reach housing costs.

May 5, 2016

SEATTLE, May 5, 2016 /PRNewswire/ -- More millennials age 24-34 live with their momsi than at any time in the last decade, according to Zillow's latest analysisii.

In the U.S., 21 percent of 24-34 year olds live with their moms, a number that's been steadily increasing since 2005, when just 13 percent lived with their moms.

El Paso, TX has the biggest percentage of millennials living with Mom, almost 34 percent -- a 12 percentage point increase since 2005. Other places with a large percentage of millennials crashing with their moms are Miami,Los Angeles, Philadelphia, and Ventura, Calif.


Millennial moochers: Record 21.6million young adults still living with mom and dad

U.S. rents are on the rise and incomes have not kept up, especially for young adults, who have faced a sluggish job market over the last decade. Over the past year, rents have increased almost 3 percent, while incomes have increased just 1.8 percent. The decision to stay with Mom could be driven by affordability or culture. In general, Hispanic families are more likely to live in multigenerational households, and many of the places with a large share of young adults living with Mom also have large Hispanic communities.

"With today's high rents and lagging income growth, many young people are having trouble setting aside enough money to buy their own home, delaying home ownership," said Zillow Chief Economist Dr. Svenja Gudell. "Living with their parents may allow young people to continue to do things like continue their education, save enough money for first and last month's rent, or save for a down payment."

The median rent in the U.S. is $1,389 per month. Zillow forecasts rents to increase about 3 percent over the next 12 months to a Zillow Rent Indexiii of $1,426.

Omaha, which made Zillow's recent list of hot housing markets to watch in 2016, has the smallest percentage of millennials living with Mom, -- 11 percent. Other markets with a small percentage of millennials living with Mom include Seattle, Denver, and Portland.

Lectures complémentaires :

1.       Dérapage Harper : La plus grosse bulle immobilière pour créer une économie artificielle par endettement (3)

2.      All of the most in-demand jobs in Canada are low-paid positions