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CATHERINE REAGOR REAL ESTATE
Millennials still reluctant to buy homes
NEW YORK — Composting and collecting kitchen scraps, once the province of those with gardens or space for a big, pungent, outdoor composter, are now being embraced by a growing number of apartment-dwellers.
KATHERINE ROTH | ASSOCIATED PRESS
See COMPOST, Page R3
NATUREMILL.NET/AP
Composting, long reserved for those with gardens or at least enough outdoor space for a big, pungent composter, is now being embraced by many apartment-dwellers. The trend has been helped along by a variety of small composters like this ceramic unit, some stylish-looking and many designed to cut odors.
There’s a new indicator to track metro Phoenix’s housing market recovery: Millennials. Living decisions made by this huge group of Americans born between 1980 and the mid-2000s has become almost as important as interest rates, job gains and population growth to forecast home sales and prices. Bigger than the Baby Boomer generation, Millennials make up one-third of the U.S. population. And so far, this group of young adults hasn’t moved in droves to buy houses. “It’s difficult to figure out what Millennials want,� said Mark Stapp, director of the Master of Real Estate Development at Arizona State University’s W. P. Carey School of Business. “What we do know is they are postponing homeownership and renting longer.� He spoke with Mike Orr, director of Carey’s Center for Real Estate Theory and Practice, and myself at the Phoenix Housing Market Explained III event on Jan. 17. Much of the discussion and questions focused on Millennials. President Barack Obama’s move to cut the insurance fees on Federal Housing Administration-backed loans in half is largely directed at helping more Millennials buy houses. FHA loans are primarily for first-time buyers. Orr characterized Millennials as a generation starting families later, living with their parents longer or sharing rentals with several roommates to save money for travel or to pay off student loans. He also said Millennials are “not convinced homeownership is good for building wealth.� A few Millennials attending the real estate event talked about their decision to buy or not buy a house. One woman said she didn’t want to buy because she might have to move for a job. Many Millennials got out of high school or college during the recession and haven’t experienced a strong job market. Another Millennial in the audience said he currently rents a house because it’s located where he wants to live. But he and a friend invested in a house, where he’s not interested in living, and turned it into a rental. The White House estimates the FHA insurance cut will help 250,000 first-time home buyers during the next three years. The latest data show Valley home sales were down 9 percent in November from the year before. Housing experts say more first-time buyers are key for the market to pick back up.
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