The Real Estate Shortage (Part 1)

Real Estate Shortages Part I: Millennials not Buying Like Boomers Harry Dent | February 28, 2019 Andrea Riquier, my favorite commentator on the housing market, grabbed my attention again with her 2018 MarketWatch article entitled "Missing Millennial Homeownership Endangers the American Dream." You can follow her on Twitter @ARiquier. She pointed to a report from the Urban Institute's Housing Finance Policy Center that suggests the "story of Millennials and homeownership is in many ways a story of inequality in America – and one that might be getting worse," as she put it. Let's look at this from my demographic perspective… Boomers bought real estate at unprecedented speed and price, thereby inflating a housing bubble from 1983 into 2005. Demand drove up price. And that made them richer, especially the ones born earlier. We saw this coming just by looking at simple demographic trends. Those same trends also warned of the looming bubble burst and I called the top of that first bubble in late 2005, just months before prices topped out in early 2006. We are near the end of a second bubble in real estate, one equally as inflated as the last, but created with different forces. This second bubble has arisen more from falling supply than rising demand. The demographic hiccup here is that, while Millennials rival Boomers in terms of numbers, they don't and won't have the same impact their grandparents had on the economy. Their numbers are spread out rather than concentrated in a sharp wave. Think of Millennials like a pig smoothie passing through a python while the Boomers were the actual pig! And, at this point in their spending wave… READ MORE » Stocks Under $10 Could Grow Your Wealth as Much as 5,132% in the coming years!  Wall Street insider John Del Vecchio revealed the brand new system he's used to "hack" the small cap market: The $10 Trader: How to Build a Fortune of as Much as $523,000 With Some of the Market's Cheapest Stocks. To get the full story, go here right now. More From Economy & Markets Home Sales Warning to the Economy Lance Gaitan | February 27, 2019 Despite home prices rising for nearly seven years straight, the pace is starting to slow. Sales are slowing dramatically, despite mortgages being historically low… READ MORE » Rent to Live… Buy to Rent Harry Dent | February 7, 2019 Here's the ultimate strategy, one you should implement NOW, before the next crash, while it's still easy to borrow… READ MORE » Economy & Markets  |  Dent Research You are receiving this e-mail as a part of your free subscription to Economy & Markets E-Letter. Remove your email from this list: Unsubscribe. To cancel by mail or for any other subscription issues, write us at: Charles Street Research Attn: Member Services, 819 North Charles Street, Baltimore MD, 21201 | Phone: 888-211-2215 | Fax: 410-223-2682 LEGAL NOTICE: Protected by copyright laws of the United States and international treaties. This e-letter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the worldwide web), in whole or in part, is strictly prohibited without the express written permission of Charles Street Research. This work is based on SEC filings, current events, interviews, corporate press releases and what we've learned as financial journalists. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility. The information herein is not intended to be personal legal or investment recommendations and may not be appropriate or applicable for all readers. If personal advice is needed, the services of a qualified legal, investment or tax professional should be sought. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation.