This just in from the Department of Misconception Debunking: student loan debt in and of itself does not, we repeat, does not prevent young would-be homebuyers from purchasing a house. Of course, you try telling that to a money-strapped millennial frantically searching for a job that’ll help them pay off their loans quicker, let alone a house. Go on. We dare you.
Obviously, we’ve wholly accepted the idea that massive student loan debt is one of the major factors contributing to a still laggy housing market. But as we’ve just said, this is not necessarily the case. According to a new report from Zillow, it’s only certain kinds of student loan debt situations that hold people back from buying. In some cases, it really just delays the process. To be sure, the shades of grey are somewhat distinct, plus there are other life variables to consider. Here’s what Zillow Chief Economist Dr. Svenja Gudell says about it in a press release:
“Student debt isn’t the evil-doer it’s made out to be, at least not when it comes to homeownership. As long as students stay in school and get a degree, student debt doesn’t deter them from homeownership, although it is possible that student debt could delay homeownership. People in their 20s and 30s are renting longer because they’re delaying marriage, paying a lot in rent, and struggling to qualify for a mortgage when they finally find an affordable home. Add to that list that they are paying off student debt.”
And with that, we present to you what homeownership odds are like as a result of student debt…
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We told you on Friday about the shaky confidence people have in the house-buying market. You know, how homeowners are feeling good about the current market, but wary of the one to come; while renters are a little more optimistic. Well, today we’re zeroing in on a segment of the population likely to fall into the latter group: millennials.
As we mentioned in our last post, the number of young Philadelphia renters who’d said earlier this year that they would be down for buying a house within a year increased by 23 percent by the time July came around. It’s a timely coincidence, then, that we’ve gotten hold of a report by Coldwell Banker Hearthside, REALTORS that took a look at what millennials, “the largest group of recent home buyers nationally,” are looking for. Here’s what they found:
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Oh millennials… (Anchiy/Shutterstock)
Millennials (ages 18-34) now make up the largest group of workers in the United States with a cool 53.5 million people. But navigating their careers hasn’t been easy. Many began working in the worst recession in modern history and took lower paying jobs outside their areas of study. Plus, millennials suffered an unemployment rate that was 40 percent higher than the rate for other groups (7.5 percent vs. 5.3 percent.)
So Young Invincibles —a Washington, D.C.-based think tank — examined which jobs are best for millennials, attempting to determine which industries are paying the most competitive salaries and offering the most growth potential. (Click here to learn more about the organization’s methodology.) Read more »
Know any millennials still on the rent bandwagon and with little to no aspiration to buy a house any time soon? It would be surprising if you don’t. According to a new Zillow report, first-time homebuyers tend to rent for an average of six years before signing off on a mortgage and are likely to be older, single, and spending a larger portion of their income compared to first-timers in the 1970 and 80s.
Indeed, if you want to get number-specific, first-time homebuyers from the 1970s rented for an average of 2.6 years, almost three times less than they do now. Moreover, they bought homes for about 1.7 times their income, while their millennial counterparts go for houses that cost 2.6 times their annual income. Age-wise, the 1970s and 80s saw its first-timers at 29 and 30 years old; today, the average first-time homebuyer is 33.
So, what exactly is behind this postponement by today’s young grown-ups? Dr. Svenja Gudell, Zillow’s chief economist, attributes it to a general slowing down in life milestones: “Millennials are delaying all kinds of major life decisions, like getting married and having kids, so it makes sense that they would also delay buying a home,” she says.
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The Forbes Under 30 Summit will once again be held in Philly.
Tinder isn’t just for dating anymore. In fact, the makers of the popular app have partnered with Forbes to create an app for the Under 30 Summit being held in Philadelphia on Oct. 4-7.
The idea is to bring the entire Under 30 community together in a new social media platform. It will feature activity feeds, member directories, messaging, notifications and opportunities for business networking. Read more »
Will cities be able to hold onto millennials as they grow up? It’s a big and scary question.
Governing interviewed local officials from five cities that millennials have flocked to in recent years — New York City, Chicago, Charlotte, Seattle and Washington, D.C. — to find out where they think the generation is headed as it grows older.
Though Philadelphia wasn’t one of the studied areas, the article reveals three reasons that millennials may stay in Philly (with some caveats): Read more »
Moorestown native Jenni Fink’s debut novel, Sentenced to Life, reaches out to the millennial generation and assures us we’re doing just fine. “I tried to think about what real life is right now and just put it into words so people can relate to it,” Fink explains. College graduates are all too familiar with the pressure of finding a job, getting married and having kids, but Fink seeks to calm these universal anxieties in her novel.
Sentenced to Life is a story of a young woman who gets a brutal wake-up call after receiving her diploma and moving back home. The book addresses relatable issues like changing family dynamics, rekindling past relationships and facing an uncertain future.
In anticipation of her book reading this weekend at James Oliver Gallery, I spoke to Fink—a graduate of the University of Arizona—about life after college and society’s unrealistic expectations of post-graduates.
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In retrospect, I should never have clicked that link.
It was Monday morning, after all, and the sun was just barely up. If you must read something before you peel yourself out of bed, it should be something benign. Maybe a scroll through Facebook. A little celebrity gossip, perhaps. Read more »
Millennials are into this. No kidding. | Screenshot of “hot yoga” scenario from Pornhub.
Pornhub Insights, the research and analysis branch of the adult video purveyor Pornhub, teamed up with Mic and published an analysis of the habits of Pornhub’s millennial users — those between the ages 18 and 34. With 18.35 billion total visits and 78.9 billion videos viewed in 2014, Pornhub certainly has plenty of data to mine, and some of the generational differences are frankly shocking. (NSFW, obviously.)
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1. The dark money outfit Philadelphia 3.0 may have violated city law — and been a flop.
The gist: A new, intriguing organization sprung up this year that was aimed at taking out some City Council incumbents and replacing them with more business-friendly faces. Parking magnate Robert Zuritsky founded Philadelphia 3.0, which includes both a traditional political action committee and a more secretive nonprofit corporation. NewsWorks’ Dave Davies reports that the Philadelphia 3.0 PAC raised 72 percent of its funding in 2015 from its own nonprofit, which is not revealing its donors. Is that legal in Philadelphia? Campaign finance expert John Dunbar said “there’s nothing in federal court rulings that prevent cities from requiring disclosure from nonprofit corporations like Philadelphia 3.0, and the city Ethics Board has said it expects such groups to disclose their donors,” writes Davies.
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