DID YOU KNOW? Is Madison Avenue retail rebounding? Since January 17 new stores have opened on this corridor that 4 years ago commanded rents up to $1,600/sf. Now, this number is closer to $1,000/sf. There is a growth in wellness, beauty, sustainability and brands that have prices reaching broader markets. One thing missing from the Avenune that has helped drive retail traffic in other parts? More food. Stores are collaborating with one another. What is the biggest trend worth watching? Several brands are BUYING their buildings or retail spaces. By doing so they remove the risk of future rent escalations beyond their control. (WWD)
DID YOU KNOW? The homeownership rate among households headed by someone under 35 was 35.4% as of the first quarter of 2019, according to the Census Bureau. In 1999 that level was about 40%. WHY?
The Great Recession caused the Millennial unemployment rate of those aged 20 - 24 to go as high as 17% in 2010. It would have been even higher if more young people hadn’t opted to continue schooling instead of joining the labor force or simply stopped looking for work.
- This delayed entry into the workforce is taking them longer to develop the financial wherewithal to buy a home.
- Many are saddled with higher levels of student debt than previous generations, making mortgage approvals more daunting.
- The tough labor market they faced early in their careers may have delayed other life events that often coincide with the decision to own a home: Millennials have been getting married/having children later.
- The 2017 tax cuts reduced financial incentives for homeownership.
- Banks have become more risk-averse since the crisis, more eager to extend pricey mortgages to wealthier clients than to lend to those seeking smaller home loans, as do many first-time buyers.
- A greater share of millennials live in the central city of a metropolitan area with a population of 500,000+ than did Generation X at the same age....where buying a home is less affordable.
- Fewer urban millennials have decamped to the suburbs in their 30s than previous generations. (WSJ)