A refreshing look at the housing market and what makes it tick. The future will be nothing like the past, so it’s time to stop dreaming of the past, and start seeing the new reality…and start changing the suburbs, so they thrive, rather than fail.
Towns like Tenafly, Cresskill, Englewood, and Alpine New Jersey need to begin looking at the future of their communities, because as of now they have neglected to do so, and things are only going to get worse.
What are they waiting for
As if the housing market didn’t have enough problems, here’s one more to add to the pile: Student loan debt
Move up buyers make only a small portion of today’s home buyers…so how will towns like Tenafly attract new buyers over the next decade
As an article in today’s New York Times points out…Report details woes of student loan deb…
outstanding student loan debt has risen to more than $1 trillion.
The housing market in Tenafly, Cresskill, Alpine…and everywhere else will start feeling the pinch. DFor those who get a jump on it and start creating a new type of suburb will prosper. Those that don’t…well they’ll just fail
For first time buyers who make up a majority of today’s home buyers, this is a killer, because how will they raise the down payments necessary to qualify for a mortgage. And what’s even worse, many of these loans were “subprime styled loans” made to people who really couldn’t afford to pay them back.
This is another part of a massive problem that will affect home sales going forward.
But just because this affects home sales doesn’t mean it’s all bad news. When people can’t afford to buy a home, then they have little choice but to rent something…and this is a major incentive for developers, and investors who build and own apartment projects.
I realize that home sales are an important part of our economy, but all is not doom when people rent apartments rather than purchase homes.
This is one of many reasons why I believe that suburban communities need to revitalize their communities to attract a new generation of residents…not just first time buyers…but all buyers and renters.
As people flee the burbs for less expensive housing and taxes, communities are left with little choice but to adapt to a new need. We simply don’t need the burbs like we used to.
Let me know what you think