Americans aren't buying homes; tax reform didn't help matters

[Yo_Mama_Been_Loggin]

At the current stage of the U.S. economic cycle, lots of things are looking unusual. For instance, wage inflation is barely in sight — even though the U.S. is enjoying its lowest unemployment rate since the late 1960s.

Another particularly puzzling trend is the record level of consumer confidence at a time when the U.S. housing market is showing serious stress.

Crucially, by stress, I don’t mean overconfident households are taking on too much debt to buy too many houses, as they did in the run-up to the Great Recession. No, this time, it’s the opposite that’s unusual: Too few Americans are taking on debt and buying too few homes.

And that raises a key question: Is housing the canary in the coal mine signaling that the U.S. is slipping into a new recession? Many of the indicators could be read to say housing is once again leading the way to a downturn, but perhaps all hope isn’t yet lost.

One thing is for sure. Despite strong overall U.S. economic growth in the past three quarters averaging 3.7 percent, the U.S. housing market itself is now teetering on the brink of a recession.

Sales of previously owned homes have been on a downward trend since peaking in 2016. It’s not that the growth rate slowed. It’s worse; the number of transactions is down 8 percent.

https://thehill.com/opinion/finance/420044-americans-arent-buying-homes-tax-reform-didnt-help-matters

[Loge23]

1. I really fear for the future of the economy

The extreme turbulence we've seen on Wall Street is telling.
Real estate is very slow right now, we're almost at full employment, yet there's little sign of growth in prosperity at the middle and low income levels.
On top of all of this, we have an absolute idiot in the Oval Office whom hasn't a clue on how our economy works, or even apparently on how to properly run a business. To compound this, the idiot has surrounded himself with more idiots: Mnuchin, Kudlow, Moore, et.al.
There's only so much a thriving economy, that the #IPOTUS was handed, can take!
We can all opine as to what can go wrong, but it sure appears that whatever can go wrong, will - and soon.
Yet again, a Democrat will be asked to repair the country's soul and economic engine.

[beachbum bob]

2. Student loan debt has a cost. Takes home buying out of the equation for

millions.

[violetpastille]

4. +1

"The Millennials didn't kill the economy. The Economy killed Millennials"

https://www.theatlantic.com/ideas/archive/2018/12/stop-blaming-millennials-killing-economy/577408/

Baby Boomers are doing okay. Gen X are doing..okay.
Millennials did everything they were told to do, and they're broke anyway.

Can't buy a house, can't buy a car..Not won't. Can't.

[tymorial]

6. I think it depends on what is "ok"

Most Gen X have little to nothing in savings let alone retirement. More than a 3rd have nothing planned for retirement. This is particularly the case for Later gen xers (76 to 80).

[violetpastille]

8. Ok..

Maybe bought a house?

Maybe bought a car? Maybe two.

Car sales are being driven by Baby Boomers according to the article in the Atlantic.
Likewise "restaurant meals" that's Baby Boomers, not pampered Millennials.

The Silent Generation: Born 1928-1945 (73-90 years old)
Baby Boomers: Born 1946-1964 (54-72 years old)
Generation X: Born 1965-1980 (38-53 years old)
Millennials: Born 1981-1996 (22-37 years old)
Post-Millennials: Born 1997-Present (0-21 years old)

[tymorial]

9. Hmm

[tymorial]

7. Took me forever to pay off my student loan debt from the late 90s

The cost was less but the interest rate was high: 8.5. My bill in 2000 was $275 which was a ton against my salary. I had to defer more than once just to make ends meet.

[JenniferJuniper]

3. There aren't many homes to buy where

I live. I have a 3.25% mortgage rate. I'm not going anywhere.

[tymorial]

5. Given the cost of homes, I am not surprised though location is probably a factor.

My wife and I wanted to buy a home for years but couldnt afford the downpayment and moving expenses. We enough for a mortgage but even the cheapest houses were out of reach. We had to move 50 miles away from my wife's work (she is the bread winner). We still had a hard time putting together the funds but we managed it. Honestly, I dont know how most people manage to buy in today's market here in southern new england. Even if you move outside of the metropolitan areas, the houses are not that much cheaper and there are no jobs.

[dalton99a]

10. Kick