The millennials have been the victims of Obama's failed economy

Washington Examiner:
A higher percentage of young Americans live with their parents, siblings or other family members now than at any time in the last 75 years. Data from Trulia show that 40 percent of young people aged 18-34 are living with their parents, the highest percentage since 1940.

Some experts are blaming high rents and "tough" mortgage standards, but that misses the actual root causes for millennials' reluctance to buy homes.

Trulia's survey shows the top reason millennials say they can't purchase a house is that they're "saving for a down payment." Some may want to use this data to troll millennials as being lazy or bad with money. That's not it. "Poor credit history," "qualifying for a mortgage" and "rising home prices" are also among the top reasons, but all tied to the same two major problems: inflated home prices and ballooning student loan debt. Both factors are being driven by bad government policies.

Average student loan debt at graduation is nearing $40,000, having gone up more than three times the rate of inflation since the federal government began subsidizing these loans. It's gone up at an even faster rate since President Obama nationalized the student loan industry in 2010, dropping almost any standards to qualify for student loans. Predictably, debt and defaults have both skyrocketed.

The unintended consequence? Less debt capacity for millennials to buy homes (and cars as well). It accounts for all the top reasons millennials list as to why they can't purchase a house. They can't save because they're paying off student loans. They have poor credit because there are a record amount of student loans defaults. They can't qualify for a mortgage because they have too much debt.

When experts say the answer to the millennial housing crisis is to lower lending standards, they ignore what is happening due to the government dropping student loan standards: tuition inflation, more student loan debt, higher default rates and a generation restricted by this debt.
Home prices are high where liberals have restricted the supply of homes.  California is one of the worst examples of this and it is why many middle-class Californians are moving to Texas where there is an adequate supply of new homes.

The student loan problem is fueled by schools engaged in predatory lending practices against unsophisticated borrowers and Obama policies have made this possible as well as the skyrocketing tuition charges which allow administrators to live like the one percent.


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