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Why Millennials aren’t buying cars or houses & what that means for the economy

Home Forums General Columbus Discussion Why Millennials aren’t buying cars or houses & what that means for the economy

Viewing 15 posts - 196 through 210 (of 211 total)
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  • #511981
    derm
    derm
    Participant

    tdziemia said:
    Don’t get me wrong; I’m all FOR this kind of trend (lower carbon footprint via less driving and less square footage in lodgings). What I’m against is sloppy journalism that takes one half-baked fact and spins it into a story with conclusions that aren’t well supported.

    I did notice that the trend in 20-34 year old’s car purchases declining went all the way back to 2002, also consistent with the PIRG statistics on miles driven, so indeed it doesn’t appear to be just a recession effect (though I didn’t go back that far to look at the relative proportion of population in that age group).

    As for some of the other reasoning … for the most part, I don’t buy gas price arguments at their current levels based on any real economic grounds. The average car driver buys something like 35 gallons of gas a month. If the price goes up 50 cents, we’re talking $17.50/mo. I don’t think that’s an amount anyone pays any attention to, at least on its own. If “total car ownership costs” (=purchase price +insurance+parking+gas) have increasing a lot, that’s an argument I’d buy, because those costs often exceed $500/mo.

    This statement is incorrect. An extremely large percentage of the workers make ten bucks an hour and fight to make sure they get their forty a week. They live paycheck to paycheck. That number is an hour per week off the timesheet after taxes and to a person who has to go to Paychex to make ends meet is a big deal. I wonder how many of the people who dont have cars or houses or what not would love them but are the hourly service personnel making ends meet just barely.

    #511982

    tdziemia
    Participant

    derm said:
    This statement is incorrect. An extremely large percentage of the workers make ten bucks an hour and fight to make sure they get their forty a week.

    Not sure the stats support that. Ten bucks an hour is $20,000 yr pre-tax. Fewer than 20% of American households have that level of income (CBO figures). If you double it for two workers in the household making that much, fewer than 35% of households have that level of income. I don’t call that “an extremely large percentage.” Though the discussion here is on millenials, and if they are disproportionately at the low end of those scales, I suppose the percentages could be higher in that age group.

    #511983

    tdziemia
    Participant

    walker said:
    If anything, I’d say that people are more hyper-aware of gas prices than most other products. But I’m not sure that means that they buy any more/less gas in the process.

    People are more aware of gas prices because the media has decided to make them aware. How many times do you hear a report on the news about the price of milk? Coffee? A kwhr of electricity? A thousand cubic feet of natural gas? I spend more on both electricity and natural gas each year than I do on gasoline. I should be spending a lot more time figuring out how to cut those costs by 5 or 10%, but I don’t. I make sure to use my fuel perks just like everyone else.

    #511984

    columbusfoodie
    Participant

    Walker said:
    I dunno… I know a lot of people who get excited about their fuel perks when they can get 10 cents a gallon knocked off their purchase. I also know people who will keep an eye on a few different gas stations to make sure they’re going to the one that is 3 cents less per gallon than the other on any particular day (saving themselves what… 30 cents?).

    If anything, I’d say that people are more hyper-aware of gas prices than most other products. But I’m not sure that means that they buy any more/less gas in the process.

    Or you could do what Paul and I do – whenever we’re planning on making a big purchase (for example – Paul bought himself a new laptop back in December), you get the gift cards for Amazon.com (in our case) or Best Buy or whatever – you get FuelPerks (especially when they’re doing double FuelPerks around the holidays), and on a purchase like that we’re talking quite a bit of money off – we did that for Christmas gifts as well (either giving the recipient a gift card directly, or using the gift card to buy their present. We ended up getting enough points to get the gas completely for free – up to 30 gallons. We have a Prius (takes roughly 10 gallons), plus we have 4 five gallon gas cans. We fill them all up, and it’s essentially 3 tanks full of gas for free. Since we’re technology whores and I buy so much stuff on Amazon.com, we are getting roughly 3 free tanks of gas every couple of months. It helps, it really does. You just have to know how to use the system to your advantage. :)

    #511985

    leftovers
    Member

    tdziemia said:

    People are more aware of gas prices because the media has decided to make them aware. How many times do you hear a report on the news about the price of milk? Coffee? A kwhr of electricity? A thousand cubic feet of natural gas? I spend more on both electricity and natural gas each year than I do on gasoline. I should be spending a lot more time figuring out how to cut those costs by 5 or 10%, but I don’t. I make sure to use my fuel perks just like everyone else.

    That is a good point. The media loves to ply gas prices. There are reasons that play into that – memories of oil embargoes and Middle East entanglements – but it does seem to run the AP circuit every couple of weeks. Home heating natural gas and electricity is a lot more regulated due to the PUC.

    Regardless, the guy who thought up grocery store fuel perks was a smart cookie and it is the modern day equivalent of the Green Stamps craze. You feel like you are getting something for nothing (a tank of gas instead of a toaster). I am with Swampkitty, and plan some purchases and large grocery runs around fuel perks.

    #511986

    News
    Participant

    Millenial Cohort Will Have Oversized Impact on Retail, Real Estate
    by Nina Gruen
    July 17, 2013

    Today’s echo boom generation (also referred to as generation Y or the millennials) will have an impact on real estate markets in the coming decades due to its size—which exceeds 87 million. In 2013, echo boomers range from 13 to 31 years of age.

    Many of the echo boomers were born to baby boomer parents, who are currently between 48 and 67 years old. Echo boomers’ values and behavior have been strongly influenced by their parents as well as by society. Boomer parents, as well as boomers who are running the school systems, and who have overseen the playing fields for students in grades K through 8, have worked together to boost the self-esteem of the echo boom generation. The emphasis was not on winners and losers; instead, there was a push to make everyone feel like a winner. The primary objective of many boomer parents has been to help their children avoid or overcome adverse situations and setbacks by offering them emotional and monetary support. As a result, many echo boomers tend to get along with their parents far better than boomers did with theirs, and they depend upon parents for ongoing support in their educational and career choices.

    READ MORE: http://urbanland.uli.org/Articles/2013/Jul/GruenMillenials

    #511987

    News
    Participant

    To Attract Millennials, Automakers Look To Smartphones
    NOAH NELSON and SONARI GLINTON
    August 29, 2013 3:30 AM

    In an effort to attract young people to cars, automakers have set up shop in Silicon Valley and are looking to the digital world as a way to lure them.

    Millennials are driving less and getting their licenses and cars later, and automakers are left to figure out how to compete not just with each other but also with consumer electronics. Cars used to represent freedom — now everyone knows, including carmakers, that’s not true anymore. For millennials — and almost everyone else — freedom is now the cellphone.

    READ MORE: http://www.npr.org/blogs/alltechconsidered/2013/08/29/216106564/to-attract-millennials-automakers-look-to-smartphones?ft=1&f=1003

    #511988

    GCrites80s
    Participant

    Jesus, just give it up with “Don’t worry, your car IS the phone” crap, car companies. It’s like trying to turn a carrot into a wrench. And it will all be obsolete in 5 years but the car will still run. All that proprietary in-car tech costs 10 times as much but still isn’t as good as the phone which they all own anyway! Even K.I.T.T. is obsolete now. He’s been reduced to just another app.

    One thing you can say goodbye to is the gauges though, it’s way cheaper to make that part of the car just a screen now.

    #511989

    lattethunder
    Participant
    #511990

    jbcmh81
    Participant

    lattethunder said:
    I guess it’s working:

    http://business.time.com/2013/08/29/august-2013-looks-to-be-the-biggest-month-ever-for-new-car-sales/?hpt=hp_t2

    It doesn’t say who’s buying, so I don’t think you can say it’s worked.

    #511991

    GCrites80s
    Participant

    Boomers Replace Their Children as No. 1 Market for Autos
    By Keith Naughton – Aug 5, 2013 10:38 AM ET

    Last year, Dave Rodham bought two Ford Mustangs — a red one because it looked cool and then a white one with a big V-8 engine because it sounded cool. For Rodham, 63 and retired, those were his 50th and 51st cars.

    “I have to have a new car every year-and-a-half to two years,” said Rodham, of Virginia Beach, Virginia, who said he pays cash for his cars. “After I retired 10 years ago, I didn’t have anything else to do, so I went out and bought new cars.”

    READ MORE:

    #511992

    lattethunder
    Participant

    jbcmh81 said:
    It doesn’t say who’s buying, so I don’t think you can say it’s worked.

    Fair enough. It answers the “what does this mean for the economy” part in the short term, at least though.

    #1061658

    News
    Participant

    Originally published Saturday, January 31, 2015 at 8:01 PM
    Millennials jump into the mortgage market

    WASHINGTON — Call them the prodigal millennials: Statistical measures and anecdotal reports suggest that young couples and singles in their late 20s and early 30s have begun making a belated entry into the homebuying market, pushed by mortgage rates in the mid-3 percent range, government efforts to ease credit requirements and deep frustrations at having to pay rising rents without creating equity.

    READ MORE: http://seattletimes.com/html/businesstechnology/2025550803_bizharney01xml.html

    #1083675

    News
    Participant

    How the Sharing Economy Is Hurting Millennials
    Reid Cramer / New America June 29, 2015

    Instead of following in the footsteps of their parents who married, bought homes, and had kids, Millennials are renting everything from homes to bikes, phones, and software, signifying a cultural shift that is radically altering their relationship to ownership. Instead of opting for the suburbs, Millennials are remaking the urban core of cities across the country, demanding improved transportation, more walkability, and better integration of technology into public services in order to benefit the collective rather than the individual. Some of these arrangements make sense over the long term, especially when the underlying assets are depreciating, but it also means that Millennials are missing out on recouping the gains from owning appreciating assets.

    READ MORE: http://time.com/3939850/sharing-economy-pitfalls/

    #1083714

    gramarye
    Participant

    “Instead of following in the footsteps of their parents who married, bought homes, and had kids, Millennials are renting everything from homes to bikes, phones, and software …. Some of these arrangements make sense over the long term, especially when the underlying assets are depreciating, but it also means that Millennials are missing out on recouping the gains from owning appreciating assets.”

    Something of a bait-and-switch there. None of those, not even owner-occupied homes outside of neighborhoods that get hot, are actually appreciating assets. Bikes can last a while but are still durable goods; phones and software are obsolete within a couple of years at best.

Viewing 15 posts - 196 through 210 (of 211 total)

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