Silicon Valley argues that Wall Street focuses too much on near-term profits — but investors have embraced money-losing biotech IPOs.Marketsread more
Most U.S. hedge funds aren't expecting another big stock market sell-off as more firms curb bets on volatility, according to Nomura.Marketsread more
More tit-for-tat tariffs in the U.S.-China trade war could set the global economy up for a recession, according to Morgan Stanley.Marketsread more
A sell-off in chip stocks intensified following a report that chipmakers are cutting ties with Huawei after the Trump administration's ban.Marketsread more
A series of tweets Monday marked the latest chapter in Trump's decadeslong effort to refute published reports that his previous financial problems have rendered him an...Politicsread more
President Trump stands a chance of creating a new economic world order in his China trade fight, says the chief economic advisor of Allianz.Economyread more
Sens. Mitch McConnell and Tim Kaine introduced a bill Monday that would raise the minimum age to buy tobacco to 21 in hopes of curbing what regulators are calling an...Health and Scienceread more
McGahn is cited more than any other witness in special counsel Robert Mueller's 448-page Russia report.Politicsread more
Ford Motor said Monday that it is laying off about 7,000 salaried workers, about 10% of that global workforce, as part of a restructuring plan designed to save the No. 2...Autosread more
Despite high criticism from fans, the final episode of "Game of Thrones" shattered single-night viewing records Sunday, with 19.3 million tuning in to watch the finale.Entertainmentread more
First-time homebuyers are largely sitting out this housing recovery, and while affordability is the main reason, it is not the only one.
It could also be they just want more than their parents did. Three-quarters of first-time homebuyers say they are looking for a home that will serve them long term, perhaps accommodating a family. They claim they don't want a starter home. That's according to a new national survey by Bank of America of more than 1,000 adults age 18 and over who want to buy a home in the future.
The share of first-time buyers fell to just 30 percent in February, according to the National Association of Realtors. Historically, it should be at least 40 percent. The common explanation for this has been that there are too few low-priced homes for sale, and that tight credit standards and high student loan debt take homeownership off the table for young buyers. Those are still valid reasons, but playing into that could also be this young generation's need for something bigger and better.
Sixty-nine percent of those surveyed said they were willing to wait until they could afford that longer-term home, rather than pony up the cash now to buy a starter home. More than half said they didn't think they could afford the type of home they'd want. Just about one-third cited high debt as a reason for putting off buying. In fact, when looking by generation, more Gen Xers than millennials have deferred purchasing their first home because of debt.
"What the report brings out is the shift in how millennials are thinking about homeownership. A home is much more of an emotional decision and a life priority decision. Is this a place where I may ultimately want to retire?" said D. Steve Boland, consumer lending executive for Bank of America.
Not only are they willing to pay more, but they're willing to do what it takes to afford more. More than half say they would make sacrifices when it comes to their spending on a car, travel, clothing and even their social lives, in order to afford the home they truly want.
Part of the shift may also be due to the fact that millennials are starting to age into their prime homebuying years, and they've already waited longer than their parents to buy. The recession hit millennials hardest, in employment and wage growth. Millennials, defined as those ages 18 to 34, have waited longer to marry and have children than previous generations.
"I do agree there are some well-heeled educated millennials who are very specific about their wants and demands," said Nela Richardson, chief economist at Redfin, a real estate brokerage.
Richardson, however, does not believe that is the primary reason the young are opting out of starter homes. It's far more simple than that.
"There are not a lot of starter homes around. All the inventory increases we've seen have been at the high end of the market. For any affordable home that hits the market, there are not only tons of first-time buyers, but investors looking to flip it or rent it out," she said.