In a nationwide survey of about 24,000 renters Apartment List found that the 80 percent of millennial renters, born between 1982 and 2004, want to purchase a house or condo, but face a huge obstacle: affording a home. For some millennials that means a wait of at least two decades before they can afford to buy a home.
Despite recent improvements in the labor market, millennials face a severe shortage of affordable entry-level homes in many parts of the country. This leaves millennials with difficult choices: extend their budgets and purchase at higher debt-to-income ratios, heightening the risk of mortgage default; migrate to more affordable areas; or delay buying a home altogether.
Nice that they want to buy a home but pretty sad that they are facing extreme difficulties in being able to become home owners. While I want more people to enjoy the positives of home ownership, I do not want anyone to buy a home before they can truly afford it.
Of the 1,041 stores expected set to open in 2017, 80%, or 810, belong to the one retail chain that focuses almost exclusively on America’s poortest, i.e., Dollar General.
This says a lot about the true state of the economy in America. If the fastest growing retailer focuses on these consumers, what does that say about shifting demographics and incomes?
Don’t get me wrong. I like Dollar General as you can find some good deals. Especially cleaning products.
Prices have recovered to pre-housing-crisis levels. But with slow wage growth, that means there are fewer affordable houses available to buyers, especially in bigger cities.
On the surface, the price trend ought to be good news for existing homeowners looking to sell. However, the likely rise in mortgage rates from historic lows means that there will be less incentive to move…
Not to worry as there will be plenty of Dollar Generals…
It sure doesn’t look like robots will be taking construction jobs any time soon.
The rapid (and rampant) rollout of labor-saving technology has inspired fears of a dystopian future in which there simply won’t be any work for humans. By this line of reasoning, as software and artificial intelligence become more powerful, gains in productivity are inevitable.
But if you’re skeptical of this view, you should look no further than a home construction site to back you up.
We keep hearing that home builders are having a tough time finding qualified workers. Builders that mass produce manufactured homes or modular homes might benefit from using robots today.
I don’t see it happening with site built homes anytime soon. Time will tell…
April not seasonally adjusted (NSA) construction unemployment rates were down in 22 states and unchanged in two (Arkansas and California) on a year-over-year basis, according to analysis released today by Associated Builders and Contractors (ABC).
However, the national NSA construction unemployment rate of 6.3 percent was up 0.3 percent from April 2016, according to data from the U.S.
Bernard M. Markstein, Ph.D., president and chief economist of Markstein Advisors, who conducted the analysis for ABC, said:
Despite the year-over-year increase, this was the third lowest national not seasonally adjusted April construction unemployment rate on record and the second lowest rate since April 2000.
As you can see, robots aren’t taking any construction jobs right now.
US Home Prices Hit New Peak
From Black Knight:
- The US Home Price Index hit a new peak in March 2017 at $272,000
- US home prices increased 1.3 percent for the month
- US home prices rose 5.8 percent year-over-year
- This is the 59th consecutive month of home price appreciation
Remember this is talking about the entire US. For information about what is happening in the Anderson SC area, check out the Anderson County SC Market Reports
Personal Income and Spending Both Increased 0.4% in April
From the BEA:
Personal income increased $58.4 billion (0.4 percent) in April according to estimates released today by the Bureau of Economic Analysis. Disposable personal income (DPI) increased $56.5 billion (0.4 percent) and personal consumption expenditures (PCE) increased $53.2 billion (0.4 percent).
Real DPI increased 0.2 percent in April and Real PCE increased 0.2 percent. The PCE price index increased 0.2 percent. Excluding food and energy, the PCE price index increased 0.2 percent.
Nice to see spending increase since so much of our economy depends on consumers buying crap they don’t need to impress people they don’t care about…
The Conference Board Consumer Confidence Index®, which had decreased in April, declined slightly in May. Lynn Franco, Director of Economic Indicators at The Conference Board said:
Consumer confidence decreased slightly in May, following a moderate decline in April. However, consumers’ assessment of present-day conditions held steady, suggesting little change in overall economic conditions. Looking ahead, consumers were somewhat less upbeat than in April, but overall remain optimistic that the economy will continue expanding into the summer months.
So was the increase in spending a reflection of consumers remaining optimistic about the economy expanding this summer? I say that if consumers are truly optimistic, they should buy an affordable brick house I have listed in Anderson.
Seriously, this is the 2nd month that the Confidence Index fell. While not time to panic, we do need to keep an eye on this next month…
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported a 5.8% annual gain in March, up from 5.7% last month and setting a 33-month high. The 10-City Composite and the 20-City Composite indices came in at 5.2% and 5.9% annual increases, respectively, unchanged from last month.
Wow! Certainly great news but remember this is national and not the local information that buyers and sellers need…
Home prices increasing at a much faster pace than earnings is a serious issue. I think the Russians are to blame…
That’s it for today!