Dr. Housing Bubble 11/17/13

[Crewleader]

Young and priced out of the US housing market: Mortgage debt traded for student debt. The dramatic fall in homeownership for those 40 and younger.

The New York Fed issues a quarterly report on credit conditions in the US. The recent report highlights a continuing trend showing young Americans are going deep into debt to pay for their expensive college educations. In fact, student debt is now the largest non-mortgage related debt in the country. This problem reflects a big issue for young potential home buyers. It also helps to explain why the homeownership rate for young households continues to fall and why many young adults are living at home. Many are coming out of college with student debt levels of $50,000 or even $100,000 and job opportunities are not justifying the costs for many graduates. Yet given our lack of good pay blue collar work, going this road is perceived as viable given that non-college educated Americans have very limited opportunities. Given the recent rise in home prices and lack of wage growth especially for the young, it is likely that the homeownership rate will continue to fall for this group. In places like California many parents are finding it necessary to gift or provide down payment assistance for their children to buy even a starter home. This assistance isn’t a few thousand dollars but tens of thousands or even hundreds of thousands of dollars. The young are being priced out of buying a home.

http://www.doctorhousingbubble.com/young-priced-out-of-the-market-young-american-homeownership-and-college-debt/

[jtuck004]

1. Michelle Obama kicks off new education initiative at Washington, D.C. high school

...
Officials say the event is part of what will be a broader focus for the first lady on getting students — especially those in underserved communities — on track to attend college.
...

Read more: http://www.nydailynews.com/news/politics/michelle-obama-kicks-new-education-initiative-washington-high-school-article-1.1514284#ixzz2ky5lXQp9

So will that be an entire generation that that has a better chance of student loan debt being taken from their SS checks than they have of buying a home? Or is that already upon us?

Seems like it would be a better use of her time to find ways for their parents in "underserved communities" to get jobs, help them find ways to counteract our trade imbalance, so the kids don't have to go into debt and could "serve" themselves, instead of being "underserved".

"Profits from student loans are ‘obscene’", here. and this is just going to increase them.