Transcript
Dean Wehrli:
Welcome to yet another fantastic episode of New Home Insights by John Burns Real Estate Consulting. I’m your host Dean Wehrli. Today, I have a panel, a panel of millennials. We’re going to start here on my left with introductions.
Kate Seabaugh:
This is Kate Seabaugh. I’m a manager in the research group in Irvine and I am an older millennial.
Mikaela Sharp:
I am Mikaela Sharp. I’m a consultant at John Burns Real Estate Consulting and I am a younger millennial.
Kyle Zierer:
I’m Kyle Zierer. I’m a manager with John Burns Real Estate Consulting and I am the oldest millennial in the group.
Kate Seabaugh:
Not by too much. [crosstalk 00:01:07].
Dean Wehrli:
So today, as you can tell, we have a group of millennials, and we’re going to talk really just about how millennials perceive, are impacted by, and see the housing market both for sale, maybe a little rental as well, by necessity or by choice. And so, let’s start right off the bat. First of all, actually, what do you think of the word millennials? Would you rather be, I don’t know, the “come at me, bro” generation, or do you like the word? Is it offensive? Is it okay? I can’t speak to [crosstalk 00:01:34].
Kate Seabaugh:
I don’t mind it. I know that there’s some stereotypes around the word, but I don’t really mind being called a millennial.
Mikaela Sharp:
I think every millennial likes to think that they’re not the typical millennial, but it’s like if every single one isn’t the typical millennial, it’s like you kind of all are, in some ways.
Dean Wehrli:
There’s no… Kyle, you’re fine with it?
Kyle Zierer:
I’m totally fine.
Dean Wehrli:
Right on. So, let’s just talk in general, how are you thinking? How much do you think… I know we work for a real estate consulting company, so that’s hard. But outside of professional, personal, and not just you too, your friends as well. How much do you talk about housing, the difficulties, the challenges, etc? Just how do you approach it?
Mikaela Sharp:
Okay, I’ll go first. So, I am the youngest of the group, brag again, but most of my friends, it’s not really even a consideration, other than I can’t do it anytime soon. I’m a little bit, probably because of the real estate industry, looking at it a little bit more. I think I like to get an idea of what’s out there so that when I am ready, I’m not passing things up because I’m waiting for something better.
Dean Wehrli:
That makes sense.
Kate Seabaugh:
So, I’m an older millennial. I would say up until recently, I didn’t really give much thought to it. It was always a longer-term goal that I wanted to eventually be a homeowner. But I really think the life stage stuff kicked in for me. Just getting more comfortable with where I was with my job, and feeling more comfortable that I would stay in Orange County for a longer period of time. I think for a long time, job flexibility was one of the main reasons that I would rent. And I think that that’s a big trigger for a lot of older millennials, just more the life stage stuff.
Dean Wehrli:
Okay. Kyle? Any thoughts?
Kyle Zierer:
I mean, I’ve always had a desire to own a home and I’ve been looking the last few years. But most people know Orange County is pretty expensive, so that’s one of the major concerns. And I’m actually one of those millennials who’s lived at home or lived at home, I don’t live at home anymore for quite a while.
Kate Seabaugh:
Yeah, who does that?
Dean Wehrli:
Not a basement.
Kyle Zierer:
It wasn’t bad. And you still have your freedoms and parents kind of leave you alone, but you can save a lot of money and still do the things you want and have a good lifestyle at the same time.
Dean Wehrli:
But that could… Is that a great thing on your Tinder profile?
Kyle Zierer:
No, it doesn’t work so well now.
Dean Wehrli:
There are some drawbacks. I’m just saying. But okay. Well, in terms of, I mean, what do you see then? I guess maybe a little… I mean, you should be careful, by the way. We’re in Orange County here, I’m not, but you guys are, so we want to be a little sense of that is, it’s a very expensive market. So, that’s coloring some of your feelings for sure.
Kate Seabaugh:
So, I’m from… This is Kate. I’m from the Midwest and I’ve lived in the Southeast and Texas before I moved out to Orange County. I would definitely say that my friends in St. Louis, Missouri, which is where I’m from, and in those more affordable areas already are homeowners or are thinking about it. And it really is more of a life stage thing. But I know a lot of people who already own homes and did so in their mid-20s, so I think the affordability component obviously is a factor too.
Dean Wehrli:
There are parts of the country where it is that even if it’s life-stage motivated, it’s still… It’s just attainable more quickly.
Kate Seabaugh:
Sure, yeah.
Dean Wehrli:
In your life than it is here. Or I should say, any coastal or any other expensive market [crosstalk 00:04:53], poor affordability market. So, is it fair to say that the goal there is still to own a home and is still… You and your millennial friends, that’s still what you want to do?
Kate Seabaugh:
Yes, I think so.
Mikaela Sharp:
I think so.
Kyle Zierer:
Yeah, absolutely.
Dean Wehrli:
So, the big question is then, what are, as a millennial and being careful to remember that we’re in a high-priced market, what are the biggest obstacles, challenges you see ahead to homeownership?
Kyle Zierer:
I think affordability, obviously, I know you just mentioned, in a high-priced market, but that’s the number one challenge I think for us.
Kate Seabaugh:
Yeah. I would say down payment. I think one of the things is, we get stereotyped as not being great savers because we spend money on concerts and experiences and renting, so being able to get enough money for a down payment, which plays into the affordability component part of it too.
Dean Wehrli:
The down payment is brutally difficult. Especially with… It’s a catch-22, right? You live in a high-priced area. That’s high-priced for rent too.
Kate Seabaugh:
Yeah, exactly.
Dean Wehrli:
Unless you live in your mom’s basement and sacrifice your Tinder pro.
Dean Wehrli:
You did mention, I’m sure. Yes, live with parents, but they’re heavy sleepers? Is that…
Kyle Zierer:
Well, yeah, sure.
Dean Wehrli:
That’s important.
Dean Wehrli:
Mikaela, I mean, is it the down payment? Is it just pure prices? Is it both?
Mikaela Sharp:
I would agree with the down payment. Trying to pay rent in a high-priced area while you’re saving at the same time is really difficult. And there’s just a lot more things nowadays that you spend your money on monthly with their smartphone and your Netflix subscription, all these boutique gym memberships. There’s a lot of things that people really didn’t use to have to spend a ton on that now seem like necessities to us, even though they aren’t.
Dean Wehrli:
And we’re finding in terms of the demographics that, especially in high-priced markets, that homeownership entry-level starts later, but the trade-off is that they have had longer to earn more income and maybe save more. But in places where… I do a lot of my work in the Bay Area and yet, their down payment might be $250,000 for a townhouse. And how do they do that? They do that because they cash out Google stock, Facebook, things like that. In most markets, that’s not an option. So, I do think down payment is a huge hurdle, one of the biggest ones. Anything else that you see?
Kyle Zierer:
I don’t know if you guys agree with me on this, but I do feel like there’s this stigma around job flexibility and kind of life flexibility. And when you own a home, it kind of ties you more to that area. I think people in our generation like the flexibility of being able to move around and travel and find different experiences. For me, that was a big thing. I don’t know if you… And I think some of my friends as well, that’s also a motivator too, is like, “Oh, do I want to stay here? Do I want to move to New York or do I want to move to Chicago” or wherever? So, I don’t know if you guys are finding that either, or if that’s just more specific to me.
Dean Wehrli:
Travel too, right? Millennials, again, a stereotype is, they’re very travel-hungry. Everybody wants to eat pray love at some point.
Mikaela Sharp:
When I think a lot of people say they want to someday move to a big city like New York or San Francisco and maybe they’ll never actually do it. But once you buy your house, you’re kind of locking yourself into that idea that you never will.
Dean Wehrli:
Gotcha.
Kate Seabaugh:
Sort of as like the end of… To me, it seems a little bit like the end of childhood and kind of like the flexibility of being in your 20s and kind of being able to move around. I don’t know. Maybe I’m just weird. I like that.
Dean Wehrli:
No, that makes sense.
Kyle Zierer:
Yeah, I think it makes sense. But I think once you get past your mid-20s, you kind of get over that.
Kate Seabaugh:
Yeah.
Kyle Zierer:
I know most of my friends who are late 20s, early 30s, they’re ready to settle down.
Kate Seabaugh:
I would agree with that.
Dean Wehrli:
And at some point, it gets awkward. “But I’m just looking to be flexible.” You’re 49. Okay? You’re a GenXer.
Dean Wehrli:
Okay. In the for-sale world then, what is it? What most appeals to you? What is the goal there? Are you super realistic? And be careful because where you live are… What are you looking for?
Kate Seabaugh:
You mean product type?
Dean Wehrli:
Yeah, product type, type of house, place.
Kate Seabaugh:
Are you looking, are you saying only new?
Dean Wehrli:
Let’s say new.
Kate Seabaugh:
Because I like resale.
Dean Wehrli:
Well, you know what? That’s a good point. Okay, let’s do that.
Dean Wehrli:
Do you think there is a bias, again generationally, for new versus resale?
Mikaela Sharp:
I think so.
Dean Wehrli:
Yeah?
Kate Seabaugh:
Which way?
Mikaela Sharp:
I think our generation is a lot more about getting a good deal.
Kate Seabaugh:
Yeah, I agree.
Mikaela Sharp:
And resale is a better deal.
Kate Seabaugh:
Yup. I think so too.
Mikaela Sharp:
Same as buying a new car. I’m always into the just a tiny bit used so you get the price lower but…
Kate Seabaugh:
But I feel like that’s a reverse stereotype. I think a lot of people think that millennials want the fanciest, coolest thing, especially when it comes to tech gadgets and all that stuff. But I do think with housing, just for the affordability component too, I mean, I’ve looked myself in resale and I know most of my friends have bought resale.
Dean Wehrli:
You’re right. And it’s a reverse stereotype. That surprises me and you all agreed with it pretty readily.
Mikaela Sharp:
Well, it’s like a brag now. You tell any girl like, “Oh, I like your jeans.” And they’re like, “Oh, it’s $20 at Costco.”
Kate Seabaugh:
Yeah.
Dean Wehrli:
Wait, that’s a brag?
Mikaela Sharp:
Yeah. Getting a great deal is a brag.
Dean Wehrli:
Really?
Mikaela Sharp:
Mm-hmm (affirmative).
Dean Wehrli:
Okay. All right. No, I picked them up off of a street person. I love [crosstalk 00:10:24].
Mikaela Sharp:
That’s the ultimate brag.
Kate Seabaugh:
Yeah.
Dean Wehrli:
Kyle, I’m sorry, you were saying something?
Kyle Zierer:
Yeah, I mean, just back on that topic, I think that the goal for me would be to own a single-family detached home with a backyard and a place for a dog and kids to play. But in this market, it’s just not realistic. So.
Dean Wehrli:
Yeah.
Kyle Zierer:
I’d be willing to settle for a town home or something cheaper and more affordable that I could actually afford.
Dean Wehrli:
Yeah. And again, we see that in all the urban expensive markets. Again, going back to the Bay Area, the new home sector is completely dominated by attached fairly dense housing because the single-family, what you just described, at 2 mil, 3 million, it’s just not realistic. But you said, Kate, in the middle and other parts of the country a little, they’d probably have different product preferences because their preferences are being driven by what they know is realistic.
Kate Seabaugh:
Yeah, I would agree with that. I mean, I think something too to think about is, in the middle… I’m from the Midwest. And so, when I came out to California where everything is new or like in Irvine, everything’s 20 or 30 years old, I actually don’t like that stuff because I’m so used to older communities. I think coastal areas attract a lot of people from the Midwest or from Texas that want to get into the California sunshine or whatever. So, I do think there is… I’ve even talked with Caroline, another person at John Burns about this. She’s from the Southeast and she likes older communities too. So, it was a little bit of a culture shock, I guess.
Dean Wehrli:
I was actually just talking with her about that today with Caroline. I’ll do a movie reference now that none of you will be old enough or young… But you know what I’m talking about, to get is a movie with Steve Martin called L.A. Story. It’s L.A., and he was with someone from non-L.A. and he’s bragging. “Some of these homes are more than 20 years old.”
Kate Seabaugh:
Yeah. Well, it’s just funny because out here, you don’t see old houses with lawns or anything. I mean, it’s just because land’s so expensive, and it’s just what the design is, I guess.
Dean Wehrli:
What are some of the trade-offs then when you’re thinking about housing? And you can make this a little broader too. Thinking about rental too, for sale, resale, new home, it’s saving money, or lifestyle, or amenities, or mobility, are you thinking of all those things? All those, how are you calculating those?
Kate Seabaugh:
So, I feel like I’ve touched on this a few times. For me, it was mobility. That’s why I’ve always rented. I’ve rented in a few different cities just because I didn’t know where I was going to be for my job and where I was going to be next. And I think also, amenities in apartment complexes are definitely attractive. But you, I’ve only used the pool at my apartment complex like five times. But it’s something like, oh, when people come in and I have visitors or when I drive in, it’s like, “Oh, this is so beautiful and I love this feel.” But I don’t actually use the amenities, which is kind of silly, because you’re paying for it.
Dean Wehrli:
You sure are. I mean, that is something, you hear that a lot with… And maybe again, it’s just being realistic in terms of what they can afford. But some millennials, a lot of millennials we found in our consulting really do want that. They’re staying in the rental space for the amenities. It’s really a lifestyle choice. I’m sure there’s a mobility factor there, but a big chunk of it is the lifestyle choice, and they can’t get that social interaction scene in the for-sale environment. They can in the rental environment.
Kate Seabaugh:
Right.
Kyle Zierer:
I think you can get in the new-home-for-sale market. I mean, there’s a lot of amenities there with pools and stuff.
Dean Wehrli:
So, like in a master plan-
Kate Seabaugh:
In a master plan.
Dean Wehrli:
You’re paying-
Kyle Zierer:
You’re paying for that, yeah.
Dean Wehrli:
So, any other trade-offs or any other kind of, when you think about among housing alternatives?
Kate Seabaugh:
Do you have any?
Mikaela Sharp:
I mean, living with my parents.
Kate Seabaugh:
So, you’re saving though.
Mikaela Sharp:
Yeah. And I think I would live with my parents until I can get what I want. In terms of housing, I’m not really willing to give up a whole lot. I don’t want to move super far out and pay $1-million Uber anytime I want to go anywhere.
Kate Seabaugh:
Yeah. Yeah, I think-
Dean Wehrli:
It’s interesting that you just said million-dollar Uber rather than have to drive in the freeway forever.
Mikaela Sharp:
Yeah, because that’s not realistic, yeah.
Dean Wehrli:
I know, but trust me, my generation would not have said-
Mikaela Sharp:
Yeah. Exactly.
Dean Wehrli:
In part because the Uber didn’t exist. I understand that. But it’s just, even now, you wouldn’t think that. Okay, well, what do you think of things like driverless cars and stuff like that? Do you think that’ll open up you to other parts of a metro area that maybe weren’t an option before?
Mikaela Sharp:
I don’t know. Because you still have to sit in the car.
Kate Seabaugh:
Yeah. Still is time.
Mikaela Sharp:
It still takes you forever to get there.
Dean Wehrli:
So, you’re just a princess who wants to go out.
Kate Seabaugh:
So, would you only go coastal or stay kind of in the area you’re in?
Mikaela Sharp:
No, I would branch out a little bit more. I don’t think I’d be willing to give up certain things like a garage.
Kate Seabaugh:
Okay.
Dean Wehrli:
Go ahead.
Kyle Zierer:
I’d choose location over driving to qualify.
Kate Seabaugh:
Same.
Kyle Zierer:
I mean, I grew up with my living in Chino Hills and my mom would commute to Irvine and she sacrificed so much family time just sitting in traffic to get to work. And I think the younger generation has kind of learned their lesson from their parents. That’s not…
Dean Wehrli:
That aspect? That literally was my next question is that, is it going to be, like it has for past generations where life dictates eventually? Maybe it’s linked to it for millennials. But eventual life stage dictates exactly what you’re just talking about, Kyle, is I am hearing that no, it might not this time, that this time might really be different. You think? In other words, when you still have that attitude, even when you have, let’s say, kids, will you still favor that location and being closer in over the product or the schools that you might be able to get further out?
Kyle Zierer:
Yeah. I mean, I’d take a town home in Orange County versus a detached home in the Inland empire.
Kate Seabaugh:
Same.
Mikaela Sharp:
Yeah.
Kyle Zierer:
Just so I could spend more time with family. I don’t want to be on the road all day.
Dean Wehrli:
Are you bagging on the 909?
Kyle Zierer:
Hey, I grew up in 909.
Dean Wehrli:
Okay. Kate?
Kate Seabaugh:
I would agree with that for sure. I’m in the market myself, and I’m only really looking at coastal areas, even if I’m going to get a smaller unit. Just because, again, I’m not from California. Maybe to Californians, feel differently, but for me, it’s like if I’m going to live in California, and probably a lot of transplants feel this way, I’m going to get the most experience and be in the most beautiful coastal location I can possibly afford, or I might as well just go save a lot of money and live in St. Louis.
Dean Wehrli:
Yeah. Okay. Mikaela?
Mikaela Sharp:
I think being near family is also incredibly important, location-wise for me. Especially when I do have kids, I would hope to continue working and I’m going to need their help watching them. And I think that kind of ticks off the need for amenities as well because they live in a community with a pool. I need to go with the pool. I can just bum off of them some more.
Kate Seabaugh:
Yeah.
Dean Wehrli:
That’s a good attitude, Mikaela. You’re going to bum off your parents until you get just the perfect house.
Mikaela Sharp:
Yup. And then continue to bum some more, when I need, yep.
Kate Seabaugh:
Free babysitting.
Mikaela Sharp:
That’s how they like it.
Dean Wehrli:
How about, okay, how about the economy? As Kate said earlier, being sort of secure in her job has led her to think about buying. How about from what happened in the last recession or going forward? What happened the last housing market downturn was the worst since the Great Depression. Has that colored how you look at that for-sale?
Kate Seabaugh:
Yes, definitely. But I think for me, I do think prices have recouped. And so, that’s scary to think that you potentially might be buying at a terrible time. But I think if you look at it from a long-term perspective, it still makes sense because you’re not just paying a landlord, you’re investing and you’re on equity. So, it definitely is a scary thought though. And for a while, I was almost hoping that there would be a market correction so I could get in at a better price point.
Mikaela Sharp:
I said that too.
Kate Seabaugh:
Yeah?
Mikaela Sharp:
That I hope, yeah. Just a little bit.
Kate Seabaugh:
Yeah. I was hoping that the market almost crash at the end, but I was like, “I don’t see that happening. So, I might as well get in before”-
Dean Wehrli:
So, just to be clear, it was Kate who says she’s hoping [crosstalk 00:18:46] that.
Kate Seabaugh:
I mean, for my own personal…
Dean Wehrli:
Yeah, no, we heard you, Kate. You’re not making it better.
Kate Seabaugh:
But it’s not good, I mean, it could go either way, because that all has an effect in all of our jobs too, and the surrounding housing market and everything. But it would be, yeah, I do feel a little bit like if you bought now, you’d be buying at…
Dean Wehrli:
At the top.
Kate Seabaugh:
Yeah. Which is a scary feeling.
Mikaela Sharp:
And I think in my lifetime, that recession is the only real recession that I remember. So, when I think recession, that’s kind of what I envision, like the worst possible case scenario.
Dean Wehrli:
That’s a great point.
Mikaela Sharp:
And I think we have a little bit different take just from being in the industry, but the fact that we’re even still scared of it and we know everything going on around it. People that aren’t in the industry and just know that, associate that with housing might be even more afraid of it.
Dean Wehrli:
That’s a good point. I mean, you’re right though. John Burns, we’re projecting a pretty mild… When there is an eventual recession, it should be a hiccup. Nothing like that, but the lesson learned is this a-historical aberrantly serious, significant recession. Kyle, do you…
Kyle Zierer:
No, I think they covered it pretty well. But I think the only thing I’ll add is, I mean, interest rates still play a part and they’re still really low historically. My parents probably bought their first home when rates were 12, 15%, so it’s still a good investment in terms of that. But prices are kind of high right now and that does play into my decision to not buy at this point.
Dean Wehrli:
How about a horrible stereotype about millennials that I’m going to propagate is this-
Kate Seabaugh:
Uh-oh.
Dean Wehrli:
No, it’s… Who here has taken care of a home? Did you mow the lawn? Did you weed? Honestly, were you guys doing that when you were teenagers, whatever?
Kyle Zierer:
I used to have a little landscaping business-
Dean Wehrli:
Did you really?
Kyle Zierer:
On the side [crosstalk 00:20:40]. I’m weird. I guess I’m weird.
Dean Wehrli:
I mean, the reason I say this is because, again, I know this is potentially a gross stereotype of millennials, but is there a concern that you’re going to want to do all the upkeep and taking care of a house that you don’t have to do in the rental space?
Mikaela Sharp:
Totally.
Kate Seabaugh:
Yes, definitely. Which I think is a reason that a lot of millennials gravitate more towards condos or things that, where there’s an HOA or something. I mean, especially for your first house.
Dean Wehrli:
Are you going to live close enough to Cali? You can come mow the lawn.
Kate Seabaugh:
Yeah, exactly.
Dean Wehrli:
Because he was a teen entrepreneur. [crosstalk 00:21:18].
Kyle Zierer:
I’m probably the oddball millennial. I mean, I actually enjoy that stuff. I can do a lot of things around the house so it doesn’t really scare me. It’s actually a money-saving thing for me.
Kate Seabaugh:
Yeah.
Dean Wehrli:
Yeah. Well, I can’t.
Kate Seabaugh:
I would rather be eating avocado toast somewhere.
Dean Wehrli:
That’s a good point, right? The other stereotype essentially with millennials, at least in bigger metro areas, is that you’re still going to want to gravitate towards those cool amenities and places to eat, entertainment venues that you’ve always been going to. That’s why I mentioned Uber, by the way. Even if you move a little ways out, maybe not a hundred miles away, but moving a little ways out, Uber makes going back to those cool amenities on even on weeknights, but on the weekends a much easier thing than it was-
Mikaela Sharp:
Yeah.
Dean Wehrli:
Ten years ago.
Mikaela Sharp:
But the price goes up exponentially when you’re just-
Dean Wehrli:
You’re harping on the Uber price, aren’t you?
Mikaela Sharp:
A little bit for that. Well, because it’s something that I’ve noticed a lot and I discuss with my friends a lot when they’re deciding where they want to rent. It’s, “Okay, well, how much will the Uber back to Newport Beach cost me?”
Dean Wehrli:
Wow. Okay.
Mikaela Sharp:
And it’s like you go another 10 minutes out and you’re paying another 10, 20 bucks.
Kate Seabaugh:
Each way.
Mikaela Sharp:
Each way.
Dean Wehrli:
Haven’t thought about that.
Kate Seabaugh:
Five nights a week, right?
Mikaela Sharp:
And you don’t want to pay more for the Uber than the actual…
Kyle Zierer:
Kate’s going out but I [crosstalk 00:22:30].
Dean Wehrli:
Active. All right. So, okay, well, I’m going to ask one last question here. If you could move anywhere in the world, money was no object, where would you live? Kate, go.
Kate Seabaugh:
I love Orange County, so I’d probably live in Laguna Beach.
Dean Wehrli:
Damn.
Kate Seabaugh:
If I could afford a really nice place in Laguna Beach, that’s where I’d be.
Dean Wehrli:
With a nice view?
Kate Seabaugh:
Mm-hmm.
Dean Wehrli:
Water?
Kate Seabaugh:
Yep.
Dean Wehrli:
All right. Mikaela.
Mikaela Sharp:
I think I would second Laguna Beach except for the fact that there’s only that one kind of road that gets there.
Kate Seabaugh:
Yeah, there’s some traffic.
Mikaela Sharp:
And if you go in the summer, sometimes you’re backed up.
Kate Seabaugh:
Yeah.
Mikaela Sharp:
I might say Irvine.
Kate Seabaugh:
Oh, God.
Mikaela Sharp:
Yeah.
Dean Wehrli:
Man, you disappointed an entire generation.
Mikaela Sharp:
I know. I’m sorry. It’s not a popular opinion among people my age, but.
Dean Wehrli:
You’re worse than Hitler. [crosstalk 00:23:19] a lot of millennials.
Kate Seabaugh:
Irvine is cool. I mean, I like Irvine. It’s a nice area, but beach coastal, you wouldn’t… Where are you going to go in Irvine for unlimited…
Mikaela Sharp:
I don’t know, but just to be close to work. Really short commute. And then close to my family.
Dean Wehrli:
Okay. All right. So you can mooch off of them.
Mikaela Sharp:
Yeah, exactly. How do I mooch if I’m that far away? Think about the Uber price.
Kate Seabaugh:
He just said money is no object and you’re thinking about work and all that stuff.
Dean Wehrli:
Your mom Ubers to you to help you out.
Mikaela Sharp:
That’s true.
Dean Wehrli:
[inaudible 00:23:48]. Kyle, what about you?
Kyle Zierer:
I’d be somewhere in the mountains, preferably in a state with low or no state income tax.
Kate Seabaugh:
There you go.
Dean Wehrli:
Wow. You sound like a militia. You might be thinking Idaho at this point.
Kyle Zierer:
Maybe.
Dean Wehrli:
All right. We’ve learned a little about Kyle here. Mikaela, Mikaela’s a moocher. Kyle, future revolutionary. He likes Red Dawn, apparently. And Kate is going to live on the beach. Kate gets my vote on where to live. I would probably do that too. It’s interesting. None of you said like, I don’t know, France or something like that.
Kate Seabaugh:
I don’t speak French.
Mikaela Sharp:
Yeah.
Dean Wehrli:
All right, all right. All right, well, let’s recap real quick for our discussion with millennials in housing. We found that yes, price makes for-sale market, at least for sure, seem pretty unattainable or at least difficult or at least far from the future. Admittedly, we might be a little coddled there by being in Southern California here. That obstacles other than affordability include down payment and the lack of being mobile and flexible once you purchase a home. That millennials are interested in getting a good deal over maybe even a new home, which surprised me. And that trade-offs include mobility, as we talked about before. And that location is pretty darn important, even over the idea of drive to qualify to get in that family-friendly home. You’re going to be much more concerned about where you live and how close you are to work and friends and things like that. Does that sound fair?
Kate Seabaugh:
Yes.
Dean Wehrli:
All right. Well, I appreciate our panel. It’s Kate, Mikaela, and Kyle. I’m Dean. You can find us on our website, RealEstateConsulting.com. Our Twitter is at J-B-R-E-C, @JBREC. And as Richard can tell you, we’re on MySpace, for you guys, for you millennials, we’re on MySpace and I believe Instagram. And I think we’ll be on Twitter as a company, which makes no sense.
Kate Seabaugh:
All right.
Dean Wehrli:
So, thank you for listening. Until next time, we’ll see you then.
