Millennials Not Eager To Own Homes Or Cars

I've read the 'Lehigh Valley Live' article headlined How some carpet stains, missing bulbs could stall Easton's momentum. It reminded me of just one more reason if I were their age I wouldn't buy a home either.

It's Not Just About The Lack Of Money
A case can be made millennials face greater financial difficulties then previous generations because of college debt and less then great prospects to land a well paying job. However even if that were not the situation there are greater reasons why younger workers aren't as eager to buy as their parents.

Transportation: Unless somebody's going to buy used, new car prices are insane. The payments go on for up to six years. By that time the vehicle is worn out and a owner would need another. So if someone were looking to keep up with cars less then five or six years old, it would be cheaper to lease. Something I'm sure banks and car manufacturers are well aware of so fix the prices to keep it that way. Hence why a millennial may be more inclined to rent rather then purchase.

Home Ownership: If I were thirty some years old I wouldn't even think of buying a home either. Most jobs today only last five or ten years before a company moves. Either I'd have to go with it or find another one. Anchored down in mortgage payments would make moving to a better job location nearly impossible. Why?

Because buying or selling a home today has become a legal con. There's too many hands in the pot. City inspectors, independent inspections, bank appraisals, realtor fees, title fees/insurance. exterminators, radon requirements, lawyer fees and sometimes ground & water testing. All of which could be only the tip of the iceberg. Failing any of these inspections could involve $10,000's of repairs involving carpenters, plumbers, electricians, roofers and who knows what else. Most of which these costs would be borne by both buyers and sellers alike.

After a young couple buys a home not only can unexpected repairs become a problem but so too homeowner's insurance and taxes which might go up faster then expected along with utilities in a particular area.

Being of child bearing age is another factor. When a couple buys a home it's neighborhood and schools can change a lot over five years and beyond. Perhaps making it no longer attractive for raising children as it once was when they purchased it.

Gone are the days pop got a job at a factory where he could expect work to last a lifetime. Gone are the days when buying or selling a home wasn't a complicated expensive matter. Gone are the days where the same neighbors remained throughout their lives. Gone are the days where one medical illness wouldn't cost a lifetime's savings possibly one's home. Gone are the days of a relatively cheap repairman coming to the home. Gone are the days where you wouldn't need a permit and a licensed person for practically everything. In today's highly litigious society one lawsuit and your done. Property assets can't be attached if you don't own any

Renters face few of these downfalls. Anything bad comes along like a job loss, changing neighborhood, monthly costs become too unbearable and the ever increasing requirements by law making it hard to sell it becomes a much simpler matter to pack up and leave for a renter. In today's fast changing world the risks all too many times outweigh the advantages. The question isn't why, but why would a young couple purchase a car or home?

As a result residents no longer have vested interest in government they once had. Not a good thing for anyone. The consequences of what cities and states are experiencing today is a lack of providing a long term outlook to our younger generation. This whole thing ties into federal, state and local policies and regulations that impede ownership and long term jobs. Too many to detail here. Suffice to say something like I read (above) isn't helping. Here's a partial copy and paste of one of the comments.. "Having experienced this first-hand as a buyer, I must agree... I was told that I could not legally move into the house until every item on a three-page list of "code violations" was fixed. The code enforcement office insisted that I needed permits for all the repairs (some of which were unnecessary, I found out later). These were all items that I had observed when I inspected the house myself as a potential buyer, most of which I figured I could repair over a longer period of time. Many of the items on the list were cosmetic, and others downright trivial, like ivy growing up the walls of a small garden shed more than thirty feet away from the house itself (just one of several examples).... I am all for insuring the safety of tenants in rental properties, and holding landlords accountable, but many of the items in my experience (as a home-buyer, not a rental property buyer) had nothing to do with safety..."
I know. I for one, would bag it and go rent instead. Who needs the grief !

Chart Courtesy 'The Atlantic"
Homeownership in America Has Collapsed—Don't Blame Millennials