Wednesday, January 14, 2015

Real estate: The young of the US and Europe

"In 2012 a whopping 36% of Americans aged 18-31 were living in their parents’ homes, up from 32% in 2007. Several things will prompt them to pack their bags in 2015."

States The World in 2015 from the Economist.  And why would it be so for the United States?

"First, the job market will improve. Unemployment has tumbled from around 10% after the financial crisis to 6% in 2014, and it will fall further in 2015."

"Second, the cost of housing will remain reasonable in America, except in crazy places like New York and San Francisco. The ratio of house prices to average incomes has crept up recently, but is far below its peak in 2006."

"Third, many young Americans who live with their parents will no longer be able to stand it any more."

And what about Europe:

"Parents in Europe may not be so lucky, alas. Nearly half of European 18- to 30-year-olds still live with their parents, thanks to sky-high youth unemployment in some countries. In Italy four-fifths of young adults live at home. Many young Italian men like having mamma cooking and cleaning for them but cannot persuade a wife to sign up for the same arrangement. Funny, that."

Enjoy the complete article here.

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