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Will Millennials Really Lead the Housing Comeback?

By Randy Kirsch

Mortgage and Lending with Right Trac Financial Group, Inc., NMLS# 2709 NMLS #1012303

November 28, 2014 05:18 AM

The Wall Street Journal published an interesting blog yesterday pointing out that all facts that are reported about millennials are not really factual. The concepts brought out in the post could be applied to just about any statistics that are reported, especially those based on surveys or government reports. It is easy for people to play games with numbers and skew survey results.

The blog pointed out that a number of sources have indicated that millennials will make up a majority of the workforce in 2015. Problem with that conclusion is that the U.S. Department of Labor does not report its data along generational lines and does not track workplace statistics by generations.

Information based on data gathered by a survey can be very inaccurate. There is no way to determine that the respondents to the survey are in fact providing accurate information. A recent report was released by Payscale.com indicating that millennials are the most educated generation with "approximately 79% holding a bachelor's degree". According to the WSJ blog only about 35% of people from ages 25-34 years of age had college degrees. That would make millennials less educated than the prior generation of "Gen Xers". It is all a matter of who participates in the voluntary survey where there are no safeguards to make sure that you are dealing with numbers from a valid cross-section of a particular age group.

Another survey by otherwise reputable businesses indicated that 80% of 1000 "Millennials" believe that they will be better off than their parents. The survey did not define what they meant by the reference to "Millennials" and there is nothing again to indicate that the participants were a true cross-section of a particular age group.

Surveys claim that millennials will lead the housing comeback. Other surveys indicate that millennials are poor savers. It all becomes a mixed bag of conjecture and speculation. Will millennials lead the housing comeback? Only time will tell, not the reports that are based on speculation and conjecture.

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Image courtesy of toddlandryblog.com

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Fred Griffin Florida Real Estate

Fred Griffin Real Estate - Tallahassee, FL

Licensed Florida Real Estate Broker

Most of the millennials that I know are buried under student loan debt. In time, they will pay it off...maybe then they will be able to buy houses.

Nov 28, 2014 05:25 AM

Randy Kirsch

Manchester, CT

Randy Kirsch

Right Trac Financial Group, Inc., NMLS# 2709 - Manchester, CT

(NMLS# 1012303) Your Dedicated Mortgage Consultant

Fred Griffin - interesting that you mention student deby and millennials as I saw a report recently that millennials had little or no student debt. From my personal experience my youngest who is an older millennial had much less student debt that my Gen X child.

Thanks for sharing. Make it a great weekend.

Nov 28, 2014 06:03 AM

Fred Griffin Florida R...

Tallahassee, FL

Lanre-"THE REAL ESTATE FARMER" Folayan

Samson Properties - Bowie, MD

I don't make promises.I deliver results.SOLD HOMES

Yes I hear one of the reasons Millennials are holding off from purchasing a house or condo is because of some massive student debt which making many of them move in with their parents.

Nov 28, 2014 06:14 AM

George Souto

George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT

Your Connecticut Mortgage Expert

Randy one thing I learned a long time ago and that is news reports and surveys many time have nothing to do with the truth, but instead are all about what sells their publication. I always take most of what I read and hear in the news with a very BIG grain of salt.

Nov 28, 2014 06:20 AM

Lanre-"THE REAL ESTATE FARMER" Folayan - Yes, there are reports that there are a large percentage of younger peopole from age 18 years to 29 years who are living with their parents AND not paying rent for the privilege of doing so!! I must wonder if they cannot pay rent, how unfortunately, will they afford to pay a mortgage?

Nov 28, 2014 07:33 AM

George Souto - yes, you have mentioned on more than several occassions that numbers can be misleading and I do agree that they can be twisted and turned to suit whatever purpose the reporter may have in mind.

Hope your Thanksgiving with your new granddaughter was all that you had hoped for.

Thanks for sharing George. Make it a great weekend.

Nov 28, 2014 07:36 AM

Joe Petrowsky

Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT

Your Mortgage Consultant for Life

Good morning Randy. I would like to understand the alternative? If this age group doesn't embrace home ownership, than housing is in more trouble than I would have thought. We have to do everything humanly possible to encourage and educate this age group. Great job with your post.

Make it a great weekend!

Nov 28, 2014 07:24 PM

Good morning Joe. No question that every business in existence relies on the younger generation to move up and replace the older generations as they become less active economically, but millennials are apparently of a different mindset when it comes to buying a home. I have 2 Gen Xers and a millennial among my 3 children. The Gen Xers could not wait for their opportunity to buy a home notwithstanding a ton of student debt. The youngest could care less about homeownership, has much less than half of the student debt that his older siblings had, and is happy paying rent and letting someone else worry about maintenance, snow removal, etc. He would rather spend his free time doing other things. That attitude may explain why the higher priced homes have had a much larger increase in sales than starter homes.

Nov 28, 2014 07:41 PM

Will Millennials Really Lead the Housing Comeback?

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