Wednesday, September 10, 2014

Fed Releases Rental Study, Surprises No One

by Osman Parvez

Can the next generation afford to buy?     Short answer: not so much. 

That's one of the not so surprising conclusions from a recent Fed study.  Income has not kept pace with real estate appreciation while the cost of higher education has continued to rise.   Meanwhile, the majority of people - including most renters - think buying is a smart idea.  

From the WSJ:  Why More Renters Aren't Buying (Hint: Weak Incomes, Savings):  

Around three in five respondents think that buying a home in their ZIP Code is a good investment, compared with one in eight that think it’s a bad one. “Current renters are as bullish on housing as current owners, or perhaps even slightly more so,” the authors conclude. Renters expect prices to rise at a slightly faster pace than owners over both a one-year and a five-year horizon.



Renters can't afford to buy, too much debt not enough income. 


The majority think housing is still a smart investment

What About Boulder?
Here's something that may surprise you.  The majority of Boulder residents do not own their own homes.  Renters hold a slight majority over owners in Boulder. 
  

Keep in mind that nearly 44% of Boulder is also under the age of 25.  We're a college town.   There are currently about 32,000 students who attend CU.     

Fun fact:   Fewer than 20,000 ballots were cast in the last City Council election (2011).  Suzanne Jones received the most ballots in her favor, with 12,933 votes.  


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