|Capital fleeing real estate as investment for renters|
|Young American? No house for you, except as a rental|
College costs have risen to the stars under the Obama Administration, so the exiting student can now look forward to skyrocketing student loan payments. PhD’s and Master’s level students might qualify for those $100K annual salaries, but they are saddled with at least 1 1/2 years salary in debt (with Fed loans averaging 6 and 7% for the last few years.) Even if they made enough money to qualify for a loan, their student debt makes qualifying for a house in Cali nearly impossible.
They live at home because the reality of their situation demands it. They CAN’T qualify to buy a house, even if they WANT to. Just watch. The next financial crisis will be all those “irresponsible” student loan borrowers. Money at this point goes to paying everyone else and they still can’t afford to exist. Last time I checked, it was called slavery when everyone owned every dime you made and you ended up with zilch!