Study Finds Majority of Millennials Have $1,000 or Less in Savings
Source: Bustle
Millennials are projected to number 75.3 million for 2015, surpassing a projected 74.9 million for Baby
Boomers. Millennials will therefore comprise a greater percentage of the population than Baby Boomers
for the first time. Howmuch.net conducted a survey to gain insight into the saving habits of this age
group. Since millennials are growing as a percentage of the population, their savings and spending habits
will increasingly have a major impact on the overall economy.
Making sense of the story

More than 50 percent of millennials have less than $1,000 in savings. This would indicate that
most millennials do not have a cushion to fall back on in case of an emergency, not to mention
the funds for a down payment on a home.

The survey found 56.3 percent of millennials earning $25,000 to $49,000 had less than $1,000 in
savings. This compared with 31.2 percent of those earning $75,000 to $99,999.
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Among those earning $100,000 to $149,000, 14.8 percent had savings of $5,000 to $10,000.
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Also, 14.3 percent of those with savings of $10,000 to $20,000 were those millennials with
incomes in excess of $150,000, the highest percentage in that range of savings.

For a gender comparison, 56.7 percent of females have less than $1,000 in savings as compared
to 46.5 percent for males.

Notably, 57.6 percent of respondents from the ages of 18 to 24 have less than $1,000 in savings.
This compared to 47.1 percent of those from the ages of 25 to 34.

For savings of $1,000 to $5,000, 19.6 percent of respondents from 18 to 24 had savings in this
range, compared to 16.6 percent of those from 25 to 34.
Read the full story
http://www.bustle.com/articles/129543-most-millennials-have-less-than-1000-in-savings-new-surveyreveals-but-heres-why-its-important
In other news …
Job Growth to Finally Boost Homebuilding?
Source: REALTOR® Magazine
The construction sector is expected to add 790,400 jobs through 2024 – the fourth highest job growth
projection among major industries, according to the Bureau of Labor Statistics (BLS). “In percentage
terms, the construction sector ranks second in terms of expected growth,” the National Association of
Home Builders reports on the findings. “The construction industry is expected to experience 1.2 percent
compounded annual growth for jobs over 2014-2024.” However, even with the uptick, employment in the
construction sector still would not be pushed above 2004 levels. From 2004 to 2014, about 837,800
construction jobs were lost on a net basis.
Read the full story
http://realtormag.realtor.org/daily-news/2015/12/14/job-growth-finally-boost-homebuilding#sf16979002
The Hot, New Company Benefit: Student Debt Repayment
Source: Bloomberg
A handful of companies are offering to pay part of their employees' student debts, an increasingly popular
perk that could help employees improve their finances, such as having the means to save for a down
payment on a home. However, student loan payment programs are still a relatively uncommon perk. Only
3 percent of more than 450 surveyed companies offer student loan repayment programs as a part of their
benefit plans, according to the Society for Human Resource Management's 2015 Employee Benefit
Survey. As college graduates have more and more debt to deal with, this benefit could become a more
popular trend. Some predict that debt repayment will become as common as health benefits.
Read the full story
http://www.bloomberg.com/news/articles/2015-12-08/the-hot-new-company-benefit-student-debtrepayment
Half of all U.S. renters are over 40
Source: Marketplace
While millennials are certainly renting, so too are their parents—so much so that there just doesn't seem
to be enough affordable rental units to go around. Christopher Herbert, Managing Director of Harvard
University's Joint Center for Housing Studies, commented, “We’ve seen vacancy rates at their lowest
level in decades and rents growing at their fastest pace in 30 years. With all those people looking for
rentals, it's increasing competition and making the market ever tighter." The increase in older renters is
a legacy of the housing crisis, and with all generations hoping to rent, prices are going up.
Read the full story
http://www.marketplace.org/2015/12/10/world/half-all-us-renters-are-over40?elq=08062170158048b19cf40f6c54de82e8&elqCampaignId=16569&elqaid=19293&elqat=1&elqTra
ckId=43b0f7d39b1a4c32bdd10522cd7c8c54
Here's why 2016 will bring good news for potential home buyers
Source: HousingWire
Redfin’s forecast for 2016 pronounces that, “Most economists agree that housing prices and sales will
continue to grow in 2016, just at a slower pace. Call it a slowdown, but not bad news.” The online portal
notes that the housing market will be fairly uneventful next year, but moderate growth is more
sustainable, and therefore better for buyers. Redfin’s five housing market predictions for 2016 include
prices and sales will grow half as fast, and Americans will have a better shot at qualifying for a mortgage
with easier credit. Redfin also expects first-time buyers to make up a bigger portion of the market than
they did this year.
Read the full story
http://www.housingwire.com/articles/35823-heres-why-2016-will-bring-good-news-for-potentialhomebuyers
8 Surprising Predictors of Housing Prices
Source: Realtor.com
It’s no surprise that home buyers and owners like to know which way prices are heading. But when it
comes to nailing the best deal in real estate, there are eight surprising indicators of change in home prices,
according to realtor.com®. For instance, a study found that for every $1 decrease in gas prices, home
prices increase by roughly $4,000 and the average time to sell a property decreases by 25 days. And it’s
not just gas prices that are worth monitoring. Homes near a Trader Joe’s are worth 5 percent more than
homes near a Whole Foods, according to RealtyTrac. Also, moving a residential housing unit one mile
closer to a professional sports facility increases its value by $793. Other indicators include marijuana
laws, casinos, temperature changes, trees on a street, and proximity to highways.
Read the full story
http://www.realtor.com/news/trends/eight-surprising-things-that-impact-property-values/
Talking Points …

The aggregate home equity position of U.S. households has shown continued improvement.
Household holdings of real estate totaled $21.826 trillion in the third quarter of 2015, $1.365
trillion higher than its level in the third quarter of 2014, , $20.461 trillion, according to the
Federal Reserve’s Financial Accounts of the U.S.

At the same time, home mortgage debt outstanding, $9.460 trillion in the third quarter of 2015,
rose by $78.0 billion over the same period. Since the total value of household-held real estate rose
faster than the aggregate amount of mortgage debt outstanding, then home equity held by
households grew.

Over the year, total home equity held by households grew by $1.286 trillion, 11.6 percent, to
$12.366 trillion. Household’s home equity is now 56.7 percent of household real estate.