20-Something Recent Graduates: The Amazing Shrinking Buyer Pool
As my friends' children began to graduate from college and get their first jobs, their parents often asked me to help with another rite of passage - helping the kids buy their first homes. It was often a cute condo, sometimes a small house.
At yesterday's seminar, The Future of Homeownership in the United States, there was a panel of experts who talked about what is happening to this particular part of the first time buyer pool.
Today's graduates are often saddled with more student loan debt than than the typical price of a first condo or house. And they can't depend on getting a job that pays enough for them to make a dent in their student loans. Many of them can't afford to rent a place of their own, or even buddy up in a group house.
So instead of getting dream job and their own place to live, they wind up moving into their parents' basements, spending their days lurking around Monster.com and playing computer games in the dark.
We're all hoping that as the economy picks up, these young ones will be able to launch themselves out of their parent's house, but when they do finally come into the real estate market, they will likely have a very different financial and credit profile than what might be ideal. And because down payment requirements seem to be increasing, they may well need a little help from the Bank of Mom and Dad (although assuming that their parents can be a major help certainly won't always something to take for granted).
But it does look like this part of the buyer pool may have shrunk pretty dramatically. With luck, their un or underemployed career status will be temporary, merely delaying their decision to purchase.
If you are planning a move to or from the Washington, DC area, I can help! I am licensed in the District of Columbia, Maryland and Virginia. Email me at Housepat@mac.com, or call 202-549-5167.