Millennials simply can't afford to live in OC (Huntington Beach, Irvine: legal, stats)

[LuvSouthOC]

Originally Posted by Marv101

Most of OC has been a very desirable place to live for many decades and the overall excellence of the schools has always been a magnet for the nonstop influx of newcomers which has certainly contributed to the nonstop escalation of housing prices, and millennials simply have to accept that fact should they wish to reside there.

Simple as that, folks.

Millennials, once they are part of the owner class, not only understand it, but embrace it.

Congrats on your home.

Lots of money is needed as a down payment. This journal estimates it could take them 10 years to save up enough.

For many millennials, it could take a decade to save up enough money to afford a home.

[HappyinCali]

Originally Posted by LuvSouthOC

Millennials, once they are part of the owner class, not only understand it, but embrace it.

Congrats on your home.

Lots of money is needed as a down payment. This journal estimates it could take them 10 years to save up enough.

For many millennials, it could take a decade to save up enough money to afford a home.

That doesn’t sound ridiculous. 10 years for most millennials means you are buying in low to mid 30s. That seems pretty reasonable.

[CLT4]

Originally Posted by HappyinCali

That doesn’t sound ridiculous. 10 years for most millennials means you are buying in low to mid 30s. That seems pretty reasonable.

10 years is the nationwide average. In Southern California, the article indicates it is 21 years. Which means an "average" millennial in Southern California that started saving for a home at 22 years old would be 43 when they can afford a 20% down payment on a condo [The reality is most people aren't putting 20% down and just pay the private mortgage insurance so they aren't 43 when they buy their first home].

The millennial home ownership rate varies greatly across the country. In many states 30% - 45% of millennials are already home owners. In states like California and New York though, the ownership rate is less than 20%. Hence the experience is going to vary widely across the country.
https://www.abodo.com/blog/millennial-homebuyers/

[payutenyodagimas]

Originally Posted by Wutwutwutwut

If you are a dual income professional couple making 120K a year, it would take about 8 years to save up 150K at a savings rate of 15%. That's definitely doable so long as you have no student loans. If the couple has 100k in student loans you can throw that out the window.

The other thing that is happening all over socal is parents are footing the down payment for their kids.

do you need to buy a $750k house if you are just starting out?

[payutenyodagimas]

I submit that if money is tight, you should only buy something that you need.


why buy a 3-bed $750k immediately when you and your spouse/partner only have bikes and pets to shelter to?


that's why there are so-called starter house. maybe start from there and when you decide to have kids then that's the time to swap to a bigger house. by that time, you might have the equity for a bigger house already.

[payutenyodagimas]

Originally Posted by Wutwutwutwut

Honestly, I'm not sure what your point is I already said you could go buy a condo in riverside if that's what you would prefer. Is there a specific price you are targeting? I can do the math for you if thats what youd like. Its not hard...

we are homeowners.

[man4857]

Originally Posted by payutenyodagimas

I submit that if money is tight, you should only buy something that you need.


why buy a 3-bed $750k immediately when you and your spouse/partner only have bikes and pets to shelter to?


that's why there are so-called starter house. maybe start from there and when you decide to have kids then that's the time to swap to a bigger house. by that time, you might have the equity for a bigger house already.

I will even go further and say, most families don't need a 3 bed house. You can do just fine with 2 bedrooms and 2 bathrooms. Just have less stuff (and therefore save more!).

[LuvSouthOC]

Originally Posted by man4857

I will even go further and say, most families don't need a 3 bed house. You can do just fine with 2 bedrooms and 2 bathrooms. Just have less stuff (and therefore save more!).

I will grant you this and would add that many millennials would scoop up those small houses. Unfortunately, there are not too many of them. Of the ones there are in OC, they sell extremely fast due to the desire for less expensive housing. This in turn makes those starter homes more expensive per square foot than larger homes so...

[LuvSouthOC]

How many of these "middle class" Californians who are headed to Vegas for a cheaper living are millennials, from OC (and LA and the Bay Area)?

California middle class look for a winning hand in Las Vegas – Orange County Register

[CLT4]

Originally Posted by LuvSouthOC

How many of these "middle class" Californians who are headed to Vegas for a cheaper living are millennials, from OC (and LA and the Bay Area)?

California middle class look for a winning hand in Las Vegas – Orange County Register

Not a direct correlation to Las Vegas specifically, but Chapman's study indicates 50% of migrations out of Orange County are millennials (doesn't necessarily mean migration out of CA, just out of OC).

Chapman study analyzes why many millennials are leaving Orange County - The Panther Online


Trulia's analysis of Census data also indicated millennials make up 20.6% of OC's population, but 46% of people that moved out.

https://www.trulia.com/blog/trends/p...out-migration/

In 2000 the median age in OC was 33 years old, by 2010 it was 36 and the 2016 estimate was 37.


The OC Workforce Indicators Report says current demographic trends in OC estimate that by 2060:

- Children 17 and under will drop from 27% of the population in 2010 to 17% in 2060.
- Adults 55 and older will grow to 40.7% of the population in 2060 from 22.5% in 2010.
- Adults 25-54 (peak working adults), will drop to 34.1% of the population in 2060 from 43% today.

County is experiencing negative domestic migration since 2002, but enough international migration and natural births to grow slightly.

Between 2016 and 2026 though, OC school enrollment is expected to drop 47,008 students.

75% of owner occupied housing is owned by people between the ages of 45 years old and 85 years old. 6.2% of owner occupied housing is owned by somebody less than 34 years old, which is actually slightly higher than the 6% of homes owned by somebody between 35 years old and 44 years old. I was surprised that even the 35 to 44 year old co-hort has such a low percentage of owner occupied housing in the county and is vast majority renter.

https://www.ocbc.org/wp-content/uplo...17-WIR-web.pdf