In the News (from CNNMoney): “The U.S. has more than 2 million missing households, thanks largely to 18 to 34-year-olds stuck living with the parentals.
“The share of 18 to 34-year-olds living with their parents rose from about 27.6% before the Great Recession in 2007 to above 31%, where it remains today, according to an analysis by Trulia, a real-estate website. Millennials have contributed to the sharp decline in household formation, which likely will take a while to return to normal.
“Until recently, hedge funds and private equity firms drove the U.S. housing market’s recovery, buying a shrinking pool of foreclosed and distressed homes to rent. It seemed like a lucrative investment, given that rents were rising while homeownership fell to record lows.
“But as big investors turn into landlords, it’s worth asking if any considered how long it could take before junior finally gets a place of his own.
“Rents for single-family homes have now risen slower than property prices. This comes as investors flood the market with homes for lease, but it also comes as fewer young adults — generally a key market for rentals – create homes of their own.”
My Comment: The crisis will force us to live a rational life in everything. For the meantime, we do not feel it yet, we are still consuming past supplies….