Each year something new happens in the real estate sector. The end of 2015 and 2016 clearly marks the time where everyone will be talking about how ridiculously high rents in San Francisco are/were. In fact so high that millennials are building their own 28 sq ft “pods” inside their friends apartments to survive (see the photo above). Did you know the average rent for a one bedroom in the Bay Area is over $3,500? But it’s not just San Francisco that’s leading the way in scary real estate statistics. We’ve compiled a list of 10 real estate statistics that should alarm not only us as individuals but the country as a whole.
Today’s young people are living with their parents instead of buying houses of their own
A full 36 percent of Millennials aged 18 to 31 are living at home with their parents. Many of them are doing so because they just can’t afford homes of their own, since they’re drowning in debt from their increasingly expensive college educations and the housing market hasn’t gotten much better since they graduated. However, the fact that younger potential home buyers are not entering the market is bad news for the market in the long run, since the parents and older siblings of Millennials aren’t going to be able to sustain the market forever. It is possible that Millennials are going to turn the market into a renter’s market, which is going to completely change the face of United States real estate forever.
Around 52 percent of Americans demonstrably cannot afford their own homes
Covering rental payments or house payments is more difficult than ever before in a world where people’s houses are worth less and less and paying for them is getting harder and harder in general. Around 52 percent of Americans have had to sacrifice something important in order to make their mortgage or rental payments, which is a sign that they are living outside of their means just by having a home. In fact, this might be the case for a lot of Americans in this day and age.
Rental prices in Boston have been going up since 2009
People are often under the impression that just because the economy managed to improve slightly since the 2008 recession, that means that everything else has managed to improve in the same way and to the same extent. In fact, Boston residents are managing to pay much more for the exact same properties, and they’re going to be in that situation now for a while. Many people in Massachusetts feel the need to live in Boston because of their jobs, since it is still very difficult for a lot of people to even have jobs in the first place in a job market that isn’t much better than the real estate market. However, it seems like the salary that Boston residents enjoy from their jobs is going to be gobbled up by their rents.
Around 20 percent of one-bedroom apartments in Manhattan cost more than four thousand dollars to rent
Granted, no one believes that it is cheap to live in Manhattan. However, the sheer degree of the costs of living there should give even the most jaded people pause for thought. People who live in Manhattan already have to get adult roommates just in order to make their rents. However, at four thousand dollars for a one-bedroom apartment, some of the people who are living in Manhattan might have to end up getting four roommates to stay in that one little room with them. They’re still going to be better off than the New York residents with bathtubs in the living room.
The median two-bedroom rent in San Francisco is 4,610 dollars
People who have always wanted to live in San Francisco better have lots of money to burn on just being able to stay there, let alone live there long-term. Even lots of people in Manhattan aren’t paying this much for an apartment. People who are making solid middle class incomes are going to find that they’re going to have barely anything left over when they’re through with paying for their fantastically expensive San Francisco apartments. It’s no surprise that San Francisco has become famous for being a great city for the child-free people: few people with kids could possibly afford a place here.
New home sales fell 7.2 percent in the American South
Lots of people, especially young people, are being encouraged to move down South in the United States where the property prices are cheaper and where they’re not going to have to worry about snowstorms and the costs of preparing for snowstorms. However, that didn’t stop the new home sales from falling in this part of the country. It is possible that the promotion just isn’t doing well enough. However, the population growth in this area is high, so it looks like people just aren’t buying new homes.
In the last quarter of 2015 alone, limited liability corporations made 58 percent of property purchases.
The Panama Papers have managed to reveal a lot about what the elite have been doing without the knowledge of the rest of the world. It turns out that they have also been shaping the real estate market to suit their own purposes.
Around 44 percent of the Californians polled said that they weren’t buying a home because they couldn’t afford it.
People who believe that there is some sort of cultural trend away from home buying are wrong. The people who aren’t doing it just can’t afford it. The same poll said that another 9 percent of the Californians polled said that their poor credit was holding them back, which is just another consequence of the ongoing economic troubles.
Los Angeles has 1,046 people per square kilometer
Los Angeles is now the most crowded city in the United States, and people are going to feel that the moment that they get there. Lots of people have been chasing the vanishing job opportunities in Los Angeles, and this city is now going to struggle to accommodate more people.
The available homes for sale in the United States declined by 8.6 percent since 2015.
It looked like 2015 was a good year for the United States housing market. Now, it looks like the market is in a downturn again. Not only are people still finding it very difficult to really afford all of the properties that they want, but fewer properties are going to be available to them at this point. The market is going to experience even fewer opportunities for growth by this point in time, and the market is going to continue to slide backward.