OFTEN TIMES WHEN WE HEAR ABOUT MILLENNIAL'S IT WILL BE
MEDIA PUNDITS TALKING DOWN ABOUT THEM, CALLING THEM LAZY, OR
WE'LL HEAR THE TRUTH ABOUT THEIR ECONOMIC SITUATION AND HOW
THEY ARE MAKING 20% LESS INCOME THAN THE GENERATION BEFORE
THEM, EVEN WHEN YOU ADJUST FOR INCOME.
THAT LOWER INCOME HAS A HUGE IMPACT ON THEIR LIVING
SITUATION.
WHAT PERCENTAGE OF THEIR INCOME GOES TOWARDS RENTING,
BECAUSE WE ALL KNOW THAT MOST OF THEM CAN'T BUY HOMES, AND
ALSO, WHAT DO THEY DO IN ORDER TO MAKE ENDS MEET WITH
THEIR LIVING?
IT TURNS OUT THAT A HUGE PORTION OF MILLENNIAL'S INCOME DOES GO
TO RENTING, EVEN WHEN YOU LOOK AT THE AVERAGE RENTER.
A TYPICAL RENTER IN MIAMI WOULD NEED TO SPEND ABOUT 50% OF HIS
OR HER INCOME TO RENT A ONE-BEDROOM APARTMENT, BUT A
TYPICAL MILLENNIAL RENTER WOULD BE TO SPEND ABOUT 54%
OF HIS OR HER INCOME IN THAT CITY.
IN LOS ANGELES, MILLENNIAL'S PAY NEARLY 39% OF THEIR MONTHLY RENT
VERSUS 34% OF THE AVERAGE RENTER.
THESE ARE EXAMPLES OF HOW MILLENNIAL SPEND A GREATER
PORTION OF THEIR AVERAGE INCOME.
THAT HE BE CLEAR ABOUT WHAT FINANCIAL ADVISORS USUALLY
TELL PEOPLE ABOUT WHAT THEY SHOULD SPEND ON RENT, OR
MORTGAGE, OR WHATEVER.
YOU ARE SUPPOSED TO SPEND 30% OF YOUR INCOME ON HOUSING, AND
OF COURSE THE VAST MAJORITY OF AMERICANS HAVE TO SPEND WAY
MORE THAN THAT, BUT AGAIN, THE PROBLEM IS EXACERBATED WHEN
YOU LOOK AT THE MILLENNIAL DEMOGRAPHIC.
ON AVERAGE, RENTERS IN THE MARIN COUNTY/SAN FRANCISCO METRO AREA
WILL SPEND OVER 77% OF THEIR SALARY TO PAY RENT IN 2017.
MARKETWATCH, I ENJOY THEIR CONTENT, HAS A SUGGESTION,
SOME ADVICE FOR MILLENNIAL'S AND WHAT THEY CAN DO.
LET ME GUESS, IS IT, DON'T SPEND SO MUCH MONEY ON
FRAPPUCCINOS YOU DIRTY MILLENNIAL'S?
NO, I HAVE TO GIVE MARKETWATCH SOME CREDIT BECAUSE THEY DO
TRY TO GIVE SOME GOOD ADVICE.
THEY SAY, YOU CAN GET ROOMMATES.
BY THE WAY, THE VAST MAJORITY OF MILLENNIAL'S EITHER LIVE
WITH THEIR PARENTS BECAUSE THEY ARE TRYING TO SAVE MONEY,
OR THEY HAVE ROOMMATES.
HASS HAS A TON OF ROOMMATES.
I HAD TO GET ANOTHER ROOMMATE SO THAT I COULD AFFORD A
DECENT LIFE STYLE IN LOS ANGELES.
BACK IN THE DAY YOU WOULD GRADUATE COLLEGE, GET A DECENT
JOB WITH A GOOD RETIREMENT PLAN AND SOME HEALTH BENEFITS, AND
THEN ALL OF A SUDDEN YOU BUY A HOUSE AND YOU GET MARRIED AND
HAVE KIDS.
SO, MILLENNIAL'S ARE BEASLEY CAN'T DO THAT, WHICH IS FINE,
AND TO BE FAIR, GENERATIONS OLDER THAN OURS CAN'T DO THAT
EITHER BECAUSE THE ECONOMY HAS NOT IMPROVED IN THE WAY
THAT WOULD IMPACT THE MIDDLE CLASS IN A BENEFICIAL WAY.
BUT ALSO KEEP IN MIND THAT NOW, THE NOTION OF RENTING SO YOU CAN
LIVE ALONE IS LIKE, PIE IN THE SKY, OH MY GOD THAT'S AMAZING.
YOU'RE LUCKY IF YOU'RE ABLE TO DO THAT.
IN MIAMI, MILLENNIAL SAVE 90%
OF THEIR INCOME IN A TWO-BEDROOM APARTMENT, AND THEY CAN SAVE 40%
IN LOS ANGELES AND NEW YORK, BUT ONLY 9 FOOT 5% IN WASHINGTON DC.
THESE ARE CASES WHERE THEY HAVE ROOMMATES, OBVIOUSLY.
IN ALL CASES EXCEPT MIAMI THEY CAN PAY LESS THAN 30%
OF THEIR INCOME ON RENT BY HAVING A ROOMMATES.
IF YOU WANT TO GET TO 30% OR LESS OF YOUR INCOME BEING
SPENT ON HOUSING, YOU CAN DO SO IF YOU HAVE ROOMMATES.
JUST WORK HARDER.
YOU GUYS ARE TOO LAZY MILLENNIAL'S, JUST WORK
HARDER, BECAUSE YOU ARE LAZY.
DON'T BUY EXPENSIVE COFFEES, BECAUSE WE ALL KNOW YOU DO, AND
GET THREE ROOMMATES AS MAYBE TAKE ON ANOTHER JOB,
BECAUSE THAT'S WHAT YOU NEED TO DO NOW.
SOMETHING TO KEEP IN MIND HERE, ESPECIALLY WITH THIS
ARTICLE, IS LOCATION LOCATION LOCATION.
WE'RE TALKING ABOUT VERY HIGHLY POPULOUS LOCATIONS.
I WAS JUST TRAVELING IN SIOUX FALLS, AND IN NORTH CAROLINA.
I WAS STAYING WITH MY FRIEND, SHE HAS A TWO BEDROOM TWO
BATHROOM, BEAUTIFUL SPOT IN CHARLOTTE.
THEY HAVE A LOUNGE AREA THAT'S FOR ALL THE RESIDENTS IN
THIS COMPLEX, THEY HAVE A GYM, HOT TUB, FREE COFFEE AT THIS
COMMUNAL AREA, AND I ASKED HER, HOW MUCH ARE YOU PAYING A MONTH?
AND IT WAS ABOUT $1600.
YOU KNOW HOW MUCH I PAY FOR MY RENT ñ I DON'T MEAN TO THREATEN
YOU ñ AND I WAS IN SIOUX FALLS AND I GOT TO SEE A REALLY
BEAUTIFUL ONE BEDROOM WITH A BEAUTIFUL VIEW ñ
YOU SOUND LIKE A REAL ESTATE AGENTS.
BEAUTIFUL VIEW, QUIET NEIGHBORS, PETS ALLOWED.
THERE WAS SOMETHING LIKE $600 FOR TOP-LEVEL APARTMENT.
SO I DO THINK IT'S LOCATION.
AND WITH GLOBAL WARMING, SIOUX FALLS IS GOING TO BE LIKE
LA SOON.
GRACE, GRACE, I'M GLAD YOU BROUGHT THAT COMPONENT OF
IT, BECAUSE IT'S AN ARGUMENT YOU WILL BRING UP CONSISTENTLY
TO ME, AND IT DOES ME CRAZY.
IT'S NOT THAT YOU ARE WRONG, IT'S TRUE, PLACES LIKE LOS
ANGELES, NEW YORK, OR SAN FRANCISCO, THEY ARE
EXPENSIVE BECAUSE OF THE FACT THAT THEY ARE DENSELY
POPULATED AND BECAUSE OF THE INDUSTRIES THAT TAKE OFF THEIR.
BUT THE REASON WHY PEOPLE LIVE THERE IS BECAUSE THAT'S
WHERE THEIR WORK IS.
SO, YEAH, I CAN GO TO SIOUX FALLS, AND DO WHAT?
THEY HAVE A WONDERFUL RESTAURANT.
PEOPLE GO TO WHERE THE OPPORTUNITIES ARE, WHICH
HAPPENED TO BE IN THE METROPOLITAN AREAS.
SO THIS WHOLE THING ABOUT, STOP COMPLAINING ABOUT HOW YOU
CAN'T AFFORD TO RENT A HOUSE, GO LIVE IN SIOUX FALLS.
THAT'S NOT A GOOD IMPRESSION OF ME.
THAT WASN'T MEANT TO BE YOU, BUT THAT'S THE ARGUMENT PEOPLE
HIT ME WITH BECAUSE THEY THINK THAT THE VAST MAJORITY OF
PEOPLE WHO ARE CONCERNED ABOUT THIS ISSUE ARE CONCERNED
BECAUSE THEY WANT TO LIVE IN A HIP PLACE.
BUT IT'S NOT ABOUT THAT, IT'S ABOUT LIVING WHERE THE
OPPORTUNITIES ARE FOR YOU.
FOR WHAT WE DO, THERE'S TWO BIG MARKETS, LOS ANGELES AND
NEW YORK, BOTH INSANELY EXPENSIVE PLACES TO LIVE.
PLACE LIKE OKLAHOMA, OR EVEN MIDDLE AMERICA, CERTAIN AREAS
ARE URBANIZING KIND OF IN THE MIDDLE OF AMERICA, AND OAKLAND
CITY IS ONE OF THOSE PLACES, WHERE MY BROTHER CURRENTLY
RESIDES, AND HE WORKS AT BOEING.
AND BOEING, IN A VERY ECONOMICALLY SMART MOVE, IS
ESSENTIALLY MOVING MOST OF THEIR DEVELOPMENTS OUT TO THE MIDDLE
OF AMERICA, WHERE THERE ARE THESE REGULATIONS SURROUNDING A
LOT OF THE JOB ñ
TOXIC WASTE AND SHIT LIKE THAT.
BOEING ISN'T DUMPING TOXIC WASTE.
I DON'T WANT TO GET FIRED, STOPPED.
BUT YOU GO TO PLACES LIKE OKLAHOMA, I WAS AT LEAST
QUITE SURPRISED WITH HOW MODERN IT IS.
THERE'S LIKE, HIPSTER WHISKEY BARS AND THEY ARE
IDENTIFYING THOSE NEIGHBORHOODS.
I KNOW, THIS ISN'T ABOUT ñ AGAIN ñ
I'M TRYING TO MAKE A POSITIVE NOTE ON THIS.
AND THEN THOSE URBAN AREAS AND START TO BECOME MORE
PROGRESSIVE BECAUSE OF DIVERSE POPULATIONS THAT MOVE THERE
TO WORK FOR BIG CORPORATIONS.
AGAIN, THIS IS NOT A JUDGMENT ON MIDDLE AMERICA.
I THINK THIS IS ABOUT PEOPLE WANTING TO LIVE IN THE
AREAS WHERE THEY FIND THE MOST OPPORTUNITIES.
IF MORE COMPANIES AND CORPORATIONS MOVED TO STATES
LIKE THAT, AND IT WORKS OUT FOR PEOPLE AND THEY GET LOWER RENT,
AWESOME, I'M ALL IN FAVOR FOR THAT.
ALTHOUGH, THE IDEA OF MOVING TO A STATE LIKE OKLAHOMA DOES
DEVASTATE ME.
REALLY GOOD BARBECUE.
WE ALSO HAVE TO CONSIDER THE WAGE GAP BETWEEN MILLENNIAL'S
AND BABY BOOMERS.
OUR PARENTS COULD WATCH FOR THINGS THAT WE DON'T HAVE
THE OPTION TO THINK ABOUT RIGHT NOW.
I DON'T HAVE THE OPTION TO HAVE SAVINGS, AND THAT IS A
CONCEPT THAT BLOWS MY PARENTS MIND.
IT'S ABOUT NOT WORKING HARD, I'M NOT REALLY SURE WHAT THAT
IS, MAYBE IT IS THAT I'M NOT WORKING HARD.
IT'S JUST THE MONEY WASN'T WHERE IT WAS FROM MY PARENTS WERE
DOING.
ALSO WE HAVE STUDENT LOAN DEBT AND CERTAIN FINANCIAL BURDENS
THAT GENERATIONS BEFORE US MAYBE HAD TO DEAL WITH, BUT NOT
TO THE EXTENT THAT WE'VE HAD TO DEAL WITH.
IT'S THE SCALES.
YOU LOOK AT THE LAST DECADE OF COLLEGE COST AND HOW IT HAS
SKYROCKETED, YOU KIND OF GET A SENSE OF WHY STUDENT LOAN
DEBT HAS EXPLODED, AND WHICH GENERATION HAS CARRIED THE
BRUNT OF ALL THAT.
SO ANYWAY, THAT'S WHAT'S GOING ON WITH HOUSING, AND ALSO
KEEP IN MIND THAT, IT'S A RENTER'S MARKET RIGHT NOW.
MOST PEOPLE ARE LOOKING TO RENT BECAUSE THEY EITHER DON'T HAVE A
GIGANTIC DOWN PAYMENT TO BUY A HOME, OR THERE IS A LACK OF
INVENTORY OUT THERE FOR HOMES, WHICH WE'VE ALSO KIND OF
RUN INTO.
I DON'T KNOW IF THERE'S EVERYONE TO BE A SOLUTION TO IT, BUT
IT'S A GROWING PROBLEM, AND THE IDEA THAT PEOPLE NOW HAVE
TO SHACK UP WITH A BUNCH OF STRANGERS JUST TO MAKE ENDS
MEET IS DEVASTATING, BUT IT IS WHAT IT IS.
YOU KNOW WHO'S THE GREATEST ROOMMATE THOUGH?
NO, I LOVE MY ROOMMATES, THEY ARE BOTH MY FRIENDS.
YOU KNOW WHO THE GREATEST ROOMMATES ARE?
YOUR PARENTS.
THEY COOK YOU FOOD, THEY CLEAN THE HOUSE, JUST LIVE WITH
YOUR PARENTS.
IT'S NOT THAT BAD.
I DIDN'T MIND LIVING WITH MY PARENTS.