Thursday, December 14, 2017

Jobs, low mortgage rates prompt more young adults to leave the nest

After riding out the tough economy in their parents' basements, more young American adults are starting to break out on their own, pushing up the nation's mobility rate and giving an important boost to the housing market and the broader recovery.

Thanks to improving job prospects and super-low mortgage rates, adults in their 20s and early 30s are moving into apartments and buying homes in increasingly greater numbers, according to real estate experts and government statistics.

Census Bureau data show that the nation added more than 2 million households in the 12 months that ended March 31, about triple the annual average for the previous four years. Most of the gain came from middle-aged and older baby boomers, but young adults are hitting the road as well.

The recession had knocked the overall U.S. interstate migration to a post-War World II low, but last year the number of people ages 25 to 29 who moved across state lines reached its highest level in 13 years, said William Frey, a demographer at the Brookings Institution.

People tend to move long distances for new jobs. During the recession and slow recovery, young people who are better educated than their parents' generation have struggled to compete with older workers in a job market with several unemployed people for every opening. That compares with about two people unemployed for every job opening before the 2007-2009 recession.

Without sufficient incomes, they delayed marriage and having children, and they simply stayed where they could pay little or no rent. The result was that 2 million more adults ages 18 to 34 were living under a parent's roof last year than four years earlier, according to an analysis of census data by Timothy Dunne, an economist at the Federal Reserve Bank of Cleveland.

In the past year, the jobless rate of those ages 25 to 34 has dropped a little more sharply than it has for the overall population. It fell to 8.3 percent in October from 9 percent at the start of the year for those workers, compared with a decline to 7.9 percent from 8.3 percent for all workers.

"With stronger economic fundamentals, the process will pick up speed," Dunne said.

As more young adults go out on their own, one big question for the economy is: Will they rent or buy?

Many are deciding to rent because they can't afford to buy or are wary about the housing market. But there's a dwindling supply of available apartments in large cities, where young adults tend to settle. Builders have been slow to put up new units, pushing down vacancy rates and driving up rents.

Meanwhile, mortgage rates have fallen to historical lows. That has made owning a home more affordable — even competitive with renting. Perceptions that the housing market is starting to heat up also have more people thinking of buying.

Comments
Proposals on school board term limits, elected superintendents move ahead

Proposals on school board term limits, elected superintendents move ahead

Despite pushback from the people who would be most affected, two proposed constitutional amendments aiming to change the governance of Florida public school districts gained support from a second committee of the Constitution Revision Commission on T...
Updated: 5 hours ago
The Florida House Speaker who bashes special interests spends their money lavishly - and won’t apologize

The Florida House Speaker who bashes special interests spends their money lavishly - and won’t apologize

TALLAHASSEE — Even before Florida House Speaker Richard Corcoran came to dominate Tallahassee, he declared himself an archenemy of special interests.“I will proudly declare war on all the special interests … all the Gucci-loafing, s...
Updated: 5 hours ago
Are Tampa Bay Rays going to make a major deal involving Alex Colome, others? Well …

Are Tampa Bay Rays going to make a major deal involving Alex Colome, others? Well …

UPDATE, 4:02: It doesn't sound like the Rays and Cardinals will be making a deal today, Derrick Goold writing for the St. Louis Post Dispatch that Cardinals execs "leave the Walt Disney Dolphin resort with good feel for what Tampa Bay would be willin...
Updated: 4 hours ago
Mikhail Sergachev earning trust – and more minutes with Lightning

Mikhail Sergachev earning trust – and more minutes with Lightning

Coyotes center Clayton Keller is very familiar with fellow rookie Mikhail Sergachev, the Lightning defenseman.They both were picked in the top-10 of the 2016 NHL Draft, Keller at No. 7 and Sergachev No. 9 to Montreal. They faced each other in three w...
Updated: 4 hours ago
Rubio a ‘no’ vote on tax bill unless it includes better child tax credit

Rubio a ‘no’ vote on tax bill unless it includes better child tax credit

Sen. Marco Rubio said Thursday he will vote against the tax bill unless the child tax credit is improved, potentially upsetting what had been A fast-moving process.Rubio told reporters in Washington after weeks of pressing for a more generous credit....
Updated: 4 hours ago
Veteran Jonny Venters, prospect Joe McCarthy among 13 Tampa Bay Rays spring invitees

Veteran Jonny Venters, prospect Joe McCarthy among 13 Tampa Bay Rays spring invitees

Inspiring veteran LHP Jonny Venters and intriguing prospect 1B/OF Joe McCarthy are among 13 players invited to major-league spring training camp with the Rays.Others coming as a result of signing minor-league contracts with invites are: RHP R.J. Alan...
Updated: 4 hours ago
Plan your beach vacation with Florida Beach Insider!

Plan your beach vacation with Florida Beach Insider!

We know how it goes: It's December. It's cold. It starts getting dark at 4:30.It's not even officially winter yet, but if you're like us, you're already yearning for the sun on your face and sand between your toes.That's why we're starting ...
Updated: 4 hours ago
USF’s Nigel Harris eager for chance with hometown Bucs

USF’s Nigel Harris eager for chance with hometown Bucs

When Nigel Harris chose where to play college football, he wanted to stay home in Tampa at USF. And now, after playing for the Chargers and Giants as an NFL rookie, he's grateful for the chance to again prove himself in Tampa as the newest member of ...
Updated: 3 hours ago
All Eyes gallery: Loren Elliott’s favorite photos of 2017

All Eyes gallery: Loren Elliott’s favorite photos of 2017

Sonia de Jara mops up water in the kitchen of her family's destroyed mobile home following Hurricane Irma in southern Collier County, Fla., on Monday, Sept. 11, 2017. LOREN ELLIOTT | TimesQuerubin Jara, 11, plays with his family's pet ducks in fr...
Updated: 3 hours ago
Court says lawsuit over new justices must wait -- until Scott makes his pick

Court says lawsuit over new justices must wait -- until Scott makes his pick

The Florida Supreme Court on Thursday dismissed a lawsuit over whether Gov. Rick Scott or his successor has the power to appoint three new justices to the Florida Supreme Court saying that action is not “ripe” because the appointments hav...
Updated: 2 hours ago