Category Archives: Housing

SF Bay Area Realtor Caters To Mass Exodus Out Of The Region

A real estate brokerage near San Francisco is capitalizing on the mass exodus out of the Bay Area. 

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According to an April report by a Bay Area advocacy group, 46% of locals say they want to move out of the area within the next few years, citing the high cost of living and skyrocketing housing prices as main reasons for wanting out. In February, CBS San Francisco reported that the number of people packing up and leaving the Bay Area has reached its highest level in more than a decade. And fo the first time in ages, the number of people leaving are outnumbering the people coming in.

Meanwhile, a statewide poll conducted by UC Berkeley last year revealed that 56 percent of voters have considered moving due to the housing crisis – and 1 in 4 of those residents said they’d leave the state.

Some are already making good on that promiseData from earlier this year confirms that Sacramento is experiencing its highest rate of domestic migration in over a decade.

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Catering to the exodus

To serve the real estate needs of soon-to-be former Bay Area residents, East-Bay broker Scott Fuller – a real estate broker of 18 years, launched LeavingTheBayArea.com, which helps clients design a relocation strategy. After helping clients sell their home “within a timeframe that works for you,” Fuller will “partner you up with a real estate specialist” in the desired destination city in order to perform an “in-depth needs analysis” in order to coordinate the move.

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Fuller says that the majority of his clientele are retirees looking to cash out and move to cheaper pastures in areas such as Portland, Las Vegas, Reno, Dallas, Austin and cities in Arizona. Those looking to remain in California have been moving to Folsom and El Dorado Hills.

Source: ZeroHedge

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Strategic Relocation: Are You Missing Out?

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The concept of strategic relocation is not new, but it’s recently become more popular, as more and more liberty-loving folks get tired of being crammed into crowded public transportation or spending hours on the road in the daily snail-pace commute. For many, the thought of leaving everything can be a bit terrifying, and if you have a family who doesn’t want to leave, you might be thinking that your Big Move is more of a pipe dream than a real possibility, even though you see the death grip on your everyday freedoms tightening by the day. Here’s the truth: it can be done. And yes, you can be amazingly happy in a new location that is more conducive to the type of life you want to live.

Just like changing your physical condition requires time, discipline, and effort, so does changing your permanent residence. Add to that a lot of planning, and you’ll see yet another reason why a lot of people don’t do it. Before we get into how to effectively and efficiently plan such a move, however, let’s look at why you might choose that path — or at least, why you’re probably interested in the idea. Over the next few days we’ll go through the process of aligning your thought process, getting down to brass tacks, and even what you should be doing when you get to your new location.

Why Move?

Maybe you live in a high-crime neighborhood. Contrary to what society will tell you these days, moving because you don’t want to deal with crime, homeless camps, drug addicts, or other social problems and vices does not make you a racist. If you want a safer environment for your family, then moving might be your best bet. When I first purchased my home in a quiet lake community north of Seattle, it was a great environment for my kid to grow up, with lots of opportunities. A few short years later, within a five block radius, there was a convicted rapist, a chop shop, a meth house, two shootings, and a hotbed of criminal activity on the next corner. That’s not counting the commute, which more than doubled in time due to exploding population. It was time to go, and I don’t regret making that move one bit. It was hard — and it continues to be. For us, it’s worth it, and we would never even consider leaving our little farm.

There is a long list of reasons why moving out of the city is an excellent choice; if you’re already considering it, then you’ve probably already thought of at least some of these:

  • Crowds
  • Crime
  • Traffic/Long commutes
  • Nosy neighbors
  • Inability to become truly sustainable
  • Lack of room for storing preps or other necessities
  • Higher prices and cost of living
  • Draconian HOAs and suburban “beautification” organizations
  • Gun laws
  • Overregulation, ordinances, taxes, levies, and all the related idiocy
  • Wanting to get your kids out of public schools
  • Lack of like-minded attitudes or political/religious ideals

Another thing you might be dealing with in your area is the locale’s natural disaster type. Everything is a trade, and while preparing for natural disaster is somewhat the same regardless of where you live, each area has its own specific challenges that you might not be okay with.

If you live in an urban or even suburban area, you might also find that you’re having a hard time finding people who believe as you do, whether that be your worldview, politics, or religious belief. Like it or not, harassment is a very real thing—and not in the ways the media would have you believe. Being liberty-minded, religious, or even just the wrong color in certain areas can get you in big trouble—and that goes for anyone. Regardless of what race you are, there are places you aren’t welcome.

The reasons to move are many, and the bottom line is that you don’t need to justify those reasons to anyone. What matters is what’s best for you and your family, and if that means pulling stakes, then so be it. If you’re set on moving, let’s talk about how to make it happen.

Choosing a Location

Once you’ve outlined your reasons for moving (thereby outlining what you’d need in a new location), you’ll need to figure out where to go. Do you just move to a different neighborhood? Out of the city into a nearby suburb? Do you stay in the same state but move to a rural locale? Or do you go all out and move to a different part of the country?

A lot of this will depend on what your reasons for moving are. If state gun laws are an issue for you, for instance, then you’ll probably need to move out of state. If you just want to be able to see your kids go to a less violent or better school, you may be able to get away with just moving to a different neighborhood. If you’ve ever wanted to try your hand at homesteading, you’ll be looking at states where that’s being done successfully.

If you use social media, you can look at groups that are local to the area you’re interested in moving to, to get a feel for the culture. Read their local paper, maybe even pull up the radio frequencies for their local police and fire and listen to the type of calls they’re dealing with on a daily basis. Are they getting a lot of overdoses? Shootings? What area of the town or county are the calls coming from? Are they places you can avoid? Is the crime location-based (such as a specific block or business) or is it widespread all over the county? If you notice over the course of a few weeks of paying attention that a specific street gets a lot of calls, or maybe the cops get called to a certain bar for fights, you can avoid that problem by simply not going to that location.

Look up the laws in your proposed new locale and see what’s considered legal and what’s not. You may very well choose to ignore certain laws in your quest for more freedom, but you should at least be able to make an informed decision about what you’re choosing, and what the potential consequences are so you can mitigate any potential fallout.

Check the county zoning laws and building permit requirements, too. One person I know found the perfect off-grid home—only to find that it was sitting just on the wrong side of the county line, in a location where the county wanted permits for everything and lots of taxes and fees. They chose to pass on that house and went to a county where there are no building permits, and no one cares what they do on their land.

Before choosing a location, you can also pull up all manner of data on everything from average income and education level to demographics, home prices, economic growth, and anything else you’d like to know. It all depends on what kinds of information you seek, and whether you’re willing to do the research. You’re never going to find the perfect place; you can, however, find something that fits the non-negotiables. Check out the local weather too, and keep in mind what will be expected in that area. Are you choosing a place with hard winters? Super-hot summers? Higher altitude? Before you throw out the idea of living in a place with rough winter, for instance, keep in mind that there are positives to everything. Snow runoff, for instance, can help you water your garden months later during a drought if you’ve thought ahead in terms of collection. And after the busyness of spring and summer, you’ll look forward to winter, when you have a freezer full of meat, shelves and root cellar packed with food, enough firewood to keep the house warm, and lots of time to work on indoor projects or study new skills in preparation for spring thaw.

One more thing—be aware of any tourist attractions, natural wonders, or other curiosities in your area. They draw crowds and everything that goes with them. You might have your heart set on living in the mountains of Wyoming—only to later realize that you moved too close to Yellowstone National Park and now have tens of thousands of people clogging your local area for half the year.

Taking the Next Step

Once you’ve decided on a location (or at least narrowed it down to 2), it’s time to talk funding. Look at average rents/mortgage payment amounts. You may need to rent a smaller place until you can buy. You may want a bit of land to raise animals. You may choose to live remotely or in a small town near a larger area. If your ultimate goal is to get as off-grid as possible, understand that you’re not going to want to go directly from an urban or suburban environment directly to a place where you have no electricity and have to haul water. You and your family will get frustrated very fast, and you’ll be tempted to move back. Start small; rent a place with a well and power.

Above all, be realistic about how it’ll be. The first year is really, really hard. The second year is a bit easier but it’s still difficult. Don’t be tempted to show up and assume you’ll be able to be fully sustainable within a year. You’ll learn some hard lessons; those lessons, however, will not only make you stronger, but you’ll find that you’re able to adapt better for the next situation. You’ll learn to use what you have instead of running to the store for everything. Depending on where you end up, you may find that certain times of the year require you to prepare, or forego certain activities in favor of making your life easier later. You’ll learn that at least part of each season is spent preparing for the next one, or getting done various tasks that need doing. There’s a routine to it, however, and over time you’ll also find that you are emotionally attached and invested in your homestead. It’s something you’ve worked on and sweated over, and it helps you survive. If you can find your spot in a state or area that is also more liberty-minded than where you are, you’re doubly blessed.

If you’ve read this far and aren’t interested in taking the leap of faith, that’s fine too — there are those who believe that freedom can be found anywhere. Ultimately, it’s your choice, and you don’t have to defend that to anyone either. For those who can smell the fresh air and imagine a different life for yourself and your family, however, stay tuned. Tomorrow we’ll talk about where you’ll find the money to make it happen.

Source: by Kit Perez | American Partisan

“Largest Ever Homeless Camp” Suddenly Appears In Minneapolis

The Associated Press (AP) has revealed a troubling story of the largest ever homeless encampment site mostly made up of Native Americans has quickly erected just south of downtown Minneapolis, Minnesota.

City officials are scrambling to contain the situation as two deaths in recent weeks, concerns about disease and infection, illicit drug use and the coming winter season, have sounded the alarm of a developing public health crisis.

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“Housing is a right,” Mayor Jacob Frey said. “We’re going to continue working as hard as we can to make sure the people in our city are guaranteed that right.”

The AP said approximately 300 people are living in the camp that is situated beside 16th Ave S & E Franklin Ave.

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Earlier this month, a team of AP reporters visited the camp and found dozens of tents lining the city street.

To their amazement, most of the residents were Native American.

The homeless camp — called the “Wall of Forgotten Natives” because it lined a highway sound barrier, is in a section of the city with a large concentration of American Indians that are suffering from extreme wealth, health, and education inequality. The AP said the tents stand on what was once considered Dakota land.

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“They came to an area, a geography that has long been identified as a part of the Native community. A lot of the camp residents feel at home, they feel safer,” said Robert Lilligren, vice chairman of the Metropolitan Urban Indian Directors.

The camp illuminates the inequalities (mentioned above) that face American Indians in the state. AP provides a shocking statistic that American Indians make up 1.1% of Hennepin County’s residents, but 16% of the homeless population, according to government data from April.

It is also a community that is being decimated by opioids. Minneapolis officials in July sued a group of opioid manufacturers and distributors, alleging their actions to promote prescription opioid drugs, such as OxyContin, have caused an addiction crisis straining the city’s resources.

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AP said one end of the camp had been designated for families, while adults — some of whom were high on drugs — were on the other end. In the middle, an organization called Natives Against Heroin, a tent where volunteers handed out bottles of water, food, and clothing. The group also provides addicts with clean needles, and most volunteers carry naloxone to treat overdoses.

“People are respectful,” said group founder James Cross. “But sometimes an addict will be coming off a high… We have to de-escalate. Not hurt them, just escort them off. And say “Hey, this is a family setting. This is a community. We’ve got kids, elders. We’ve got to make it safe.”

With hundreds of people living in close quarters, health officials fear an outbreak of infectious diseases like hepatitis A. Local support groups have started administering vaccines. Earlier this month, a woman died when she did not have an asthma inhaler, and one man died from a drug overdose.

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Local government agencies have set up areas to provide medical assistance, antibiotics, hygiene kits or other supplies. There are tents advertising free HIV testing, a place to apply for housing, and temporary showers. Portable restrooms and hand-sanitizing stations had also been positioned around the camp.

The Minneapolis City Council voted Wednesday to move the camp to a 1.5-acre commercial property owned by the Red Lake Nation. The decision came five days after Mayor Jacob Frey and representatives of ten tribes said the industrial site was the best place to relocate the tent city.

The new site at 2105-2109 Cedar Ave. South will not be ready until December because demolition work will take several months, according to David Frank, the city’s Community Planning and Economic Development director.

“We will go as quick as we can to have the interim navigation center operational and ready,” Frank said. “We have our permitting people standing by. We have our housing team, our facilities team and our projects management all lined up to do this work.”

The cost of preparing the site with living accommodations for dozens of people will be between $2 million and $2.5 million, Frank added.

Minneapolis’ homeless explosion comes as no surprise. The much larger trend at play is the nation’s homeless population increasing for the first time since 2010 — driven by housing affordability issues, and widening inequalities. But do not tell President Trump the real economy continues to deteriorate.

In 40 different venues over the last three months, President Trump declared the economy is the greatest, the best or the strongest in US history.

— Trump, in a speech at a steel plant in Illinois, July 26

“This is the greatest economy that we’ve had in our history, the best.”

— Trump, in a rally in Charleston, W.Va., Aug. 21

“You know, we have the best economy we’ve ever had, in the history of our country.”

— Trump, in an interview on “Fox and Friends,” Aug. 23

“It’s said now that our economy is the strongest it’s ever been in the history of our country, and you just have to take a look at the numbers.”

— Trump, in remarks on a White House vlog, Aug. 24

“We have the best economy the country’s ever had and it’s getting better.”

In a recent, Bank of America note titled “The Thundering World,” a major theme in development for the 2020s could be “the epic wealth inequality” that is plaguing the economy.

BofA says quantitative easing amplified income and wealth inequality over the last decade. The distribution of wealth is the widest ever. The top 1% own 40% of the global wealth; the bottom 80% own 7%.

What does this all mean? Well, decades of failed economic and social policies are about to come home to roost. The explosion of homelessness in Minneapolis over a short period, is an example of the breakdown of the social fabric that will strain many more municipalities across the country in the years ahead. The America that we knew will not be the same by 2030.

Source: ZeroHedge

Home Builder Stocks Decline As Fed Hikes Rates And Unwinds

The bloom is off the rose for home builders. Yes, it had been a great run, fueled by The Fed’s zero-interest rate policy (ZIRP) and asset purchases (QE). But despite a roaring economy, SPDR S&P Home builders ETF have been falling since January as The Federal Reserve Open Market Committee (FOMC) sticks to their guns and keeps normalizing interest rates.

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Yes, the Fed Dots Plot project indicates that there is still upside momentum to short-term interest rates.

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And the Fed’s System Open Market Accounts (SOMA) show a declining inventory of Treasury Notes and Bonds to let mature.

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Source: Confounded Interest

 

New York Millennials Paying $1800 Per Month To Cram Into 98-Square-Foot Rooms

Millennials in New York are known for living in a state of perpetual brokeness – between student loans, $20 nightclub drinks and $15 avocado toast, it’s easy to understand why 70% of millennials have less than $1,000 in savings. 

Now we can add expensive, glorified closets to the mix, as the Wall Street Journal reports.

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30-year-old marketing manager Scott Levine lives in an $1,800 per month, 98-square-foot room in a postage-stamp of an apartment – “basically, a kitchen” – with two roomates. Every week, someone from Ollie – his property manager, stops by to drop off towels and toiletries. 

A “community-engagement team” at Ollie helps plan Mr. Levine’s social calendar. A live-in “community manager”—sort of like a residential adviser for a college dorm—gets to know Mr. Levine and everyone else living on the 14 Ollie-managed floors of the Alta LIC building, known as Alta+, and finds creative ways to get them engaged in shared activities, like behind-the-scenes tours of Broadway shows or trips to organic farms. –WSJ

“Life in general can be a bit of a headache,” says Mr. Levine. Thanks to Ollie, he adds, “Everything is done for you, which is convenient.”

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Ollie’s business model is all about convenience and roommates – usually single people in their 20s and 30s who have all amenities provided for them, while sharing a kitchen and common area. 

For city-dwellers accustomed to living cheek-by-jowl with people whose names they’ll never bother to learn, this might seem strange. But for young people still forming their postcollege friend groups—in an era when participation in civic life is down and going to a bar can mean huddling in a corner swiping on Tinder—it makes sense. So much sense that people put up with apartments so small they’re called “micro.” But hey, free shampoo. –WSJ

Meanwhile, startups such as Ollie and Common are competing with big-city real-estate developers. Common manages 20 co-living properties in six cities where roommate situations are more common, such as New York, Los Angeles and Washington DC. They have approximately 650 renters according to CEO Brad Hargreaves. 

“Our audience is people who make $40,000 to $80,000 a year, who we believe are underserved in most markets today,” Mr. Hargreaves says.

Other startups are managing existing homes and apartments, “Airbnb-style” as the WSJ puts it. 

Bungalow, which just announced $64 million in funding, wants property owners to offer space to “early-career professionals” looking for a low-maintenance place to stay. It charges rent that’s “slightly higher” than what it pays those owners, a company spokeswoman says. It currently maintains over 200 properties—housing nearly 800 residents—across seven big cities, says co-founder and CEO Andrew Collins.

As with Common and Ollie, Bungalow advertises that it furnishes the common areas in its homes, installs fast free Wi-Fi, and cleans them regularly. The company also organizes events and outings to help you “build a community with… your new friends.” –WSJ

One of the underlying aspects of the co-living startup models is a technology platform that both advertises to prospective tenants and takes care of their needs once they’re living on-site. Ollie’s “Bedvetter” system, for example, shows apartments to potential tenants – and shows who’s already signed up to live there with links to their personal profiles in order to match roommates. Bedvetter also matches people into “pods” of “potential roommates” before they begin an apartment hunt. 

“It’s like online dating,” says Levine – while his roommate, Joseph Watson, 29, compares it to eHarmony or Match.com vs. Tinder, as it’s designed for long term pairings.

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“Micro Economics” 

While millennials in New York and other urban areas scramble to make ends meet, developers are making hand over fist on the co-living movement – even though the renters themselves are paying less than they would for a private studio. 

The Alta LIC building also has conventional apartments, but the co-living units are filling up faster, says Matthew Baron, one of the Alta LIC building’s developers. What’s more, he adds, he can get more than $80 a square foot for Ollie units compared with around $60 a square foot for the others, even though the Ollie ones are on the lower, less-desirable floors. –WSJ

Another complication with co-living arrangements is tricky community management. L.A.’s PodShare, for example, vets potential tenants beforehand – however issues with problem tenants are unavoidable. “We’ve hosted 25,000 people at this point, so there’s bound to be some problems,” says founder Elvina Beck. 

Common building tenant Teiko Yakobson said that the “community vibe broke down after Common eliminated the paid “house leader,” complaining that “We all just became strangers, and it was no better than living in any other apartment.” Common instead replaced the program with “centralized” community managers at the corporate level – which Hargreaves says is “more coherent” for them. 

It’s not all bad, however…

When it does work, co-living can re-create the kind of communities tenants seek online—ones grounded in common interests and shared socioeconomic status.

Mr. Levine, who not only lives in a co-living building but also works in a co-working space—and in whose social circle most people do either one of those or the other—is aware that, while this isn’t for everyone, he is hardly a standout. “One thing I’ve heard before is that I’m a stereotype of a New York millennial,” he says.

Just make sure you have earplugs in case your roommate is able to get laid in their respectively expensive, tiny room. 

Source: ZeroHedge

The Millennial Crisis

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There is a serious economic crisis brewing that few seem to be paying attention. According to a new survey from Zillow Group Inc. (ZG  Get Report), approximately 22.5% of millennials ages 24 through 36 are living at home with their moms or both parents, up nine percentage points since 2005  which was 13.5% and the most in any year in the last decade. Between the student loans which cannot be discharged thanks to the Clintons (to get the support of bankers) even after they find that degrees are worthless when 60% of graduates cannot find employment with such a degree and the fact that taxes have escalated to nearly doubling over the last 20 years that is predominantly state and local, the affordability of buying a home has been fading fast. Despite the fact that millennials are eager to enter the real estate market, they’re bearing the brunt of the challenge directly caused by the combination of taxes and non-dischargeable student loans.

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Now 63% of millennials under the age of 29 cannot even afford the cost of home ownership, according to a CoreLogic and RTi Research study. The expense, in fact, is their number one reason for remaining a renter. In their research, they concluded that one-third of millennial renters reported feeling they cannot afford a down payment to buy a home. This is a sad response that is not being taken into consideration by governments.

Where home prices have not risen sharply, taxes have. First-time home buyers face ever-growing challenges to find and buy affordable entry-level homes as the economics of inefficient governments at the state and local levels have refused to reform and raise taxes to meet pension costs they promised themselves. Politicians from London to Vancouver have increased taxes to try to bring home prices down rather than looking at the problem objectively. All they are accomplishing is punishing people who have owned homes and destroying their future when home values were their retirement savings.

California and Illinois are just two major examples at the top of the list of grossly mismanaged state governments. It is this net affordability factor that has begun to encumber sales of real estate, softening prices and turning many millennials into renters rather than home buyers. Then add the rise of interest rates and we have an economic cocktail of taxes that is beginning to kill the real estate market in a slow death drip by drip. Depressions take place when the debt and real estate markets collapse – not equities and commodities. The amount of money invested in debt markets dwarfs equities, It is ALWAYS the debt market that you undermine when you want to destroy an economy.

Taxes and the rise in interest rates will further erode affordability and is beginning to slow existing-home sales in many markets already. As this trend continues, home prices and mortgage rates over the next couple of years will likely dampen sales and home price growth. There was another study conducted by Freddie Mac which also found that affordability challenges are contributing to a downtrend in young adult home ownership. Long-term, real estate prices will decline as taxes and interest rates rise. The next crop of buyers is being culled and as that unfolds, real estate cannot rise when banks also begin to curtail the availability of mortgages.

Source: by Martin Armstrong | Armstrong Economics

Millennials Are Flocking To Cheap Rust Belt Cities

Educated, but poor, millennials are transforming neighborhoods in several Rust Belt states like Ohio, Michigan, and Wisconsin in search for affordable communities.

Since the end of the American high (the late 1960s), the Rust Belt had experienced decades of de-industrialization and a mass exodus of residents. Manufacturing plants closed down, jobs disappeared, and communities disintegrated, as this once vibrant region is now a symbol of decay and opioids.

However, this trend has reversed in recent years, as some millennials have abandoned big cities for Rust Belt communities, in hopes to catch the falling knife and invest in real estate that could be near its lows.

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It is a massive risk, and the narrative behind this “attractive investment bet” are affordable communities, unlike the Washington Metropolitan Area, San Francisco, New York, San Diego County, and Boston.

Yet this revitalization of the Rust Belt economy could not have come at the worse time: Last week, Bank of America rang the proverbial bell on the US real estate market, saying existing home sales have peaked, reflecting declining affordability, greater price reductions and deteriorating housing sentiment.

While it is difficult to say what exactly happens in Rust Belt communities in the next downturn, one should understand that housing prices in these regions will probably stay depressed for the foreseeable future. So, if the millennial who was hoping for a Bitcoin-style like move, they should think again as investing in Rust Belt communities is a long-term strategy.

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Constantine Valhouli, Director of Research for the real estate research and analytics firm NeighborhoodX, told CNBC that millennials are flocking to these areas not just for home ownership, but rather rebuilding these communities from the bottom up.

“It is about having roots and contributing to the revival of a place that needs businesses that create jobs and create value.”

According to Paul Boomsma, president and CEO of Leading Real Estate Companies of the World (LeadingRE), some of these formerly blighted towns are gradually coming back to life. The latest influx of millennials view these regions as financial opportunities and places to construct new economies – especially with real estate prices far below the Case–Shiller 20-City Composite Home Price Index.

“Millennials are swiping up properties for next-to-nothing prices near downtown city areas that have completely revitalized,” Boomsma said. LendingRE has listed a three-bedroom Victorian home in Mansfield, Ohio, with an asking price of $39,900.

The median home value in Mansfield is $60,300, now compare that to the median home value of nearly $700,000 in New York City and a whopping $1.3 million in San Francisco, and it is obvious why millennials are flocking to the Rust Belt. Experts add that there is more to consider than discounted prices.

“There is a community-mindedness with millennials that attracts them to the smaller Rust Belt towns,” said Peter Haring, president of Haring Realty in Mansfield, Ohio.

“We are seeing an intense interest in participating in the revitalization of our towns and being a part of the community. It’s palpable, and it’s exciting,” he added.

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Haring said affordable homes in Mansfield comes with a significant drawback: distance. The closest large cities, Cleveland and Columbus, are each an hour’s drive, and amenities are lacking.

“For people working in those cities, they are sacrificing drive time,” Haring said. “In some cases, they are sacrificing the convenience of nearby shopping and restaurants.”

But for millennials that is a little concern: they have the luxury of working remotely and ordering consumable goods from Amazon.

“More and more people are now working virtually, which means they do not need to be in their office and can work from almost anywhere,” said Ralph DiBugnara, senior vice president at Residential Home Funding. “So why not find somewhere to live where your city dollars can go a lot further?”

CNBC points out that some large corporations are moving back into these areas, the same areas that they left decades ago for cheap labor overseas. One example is home appliance manufacturer Whirlpool, whose corporate headquarters are in Benton Harbor, Michigan.

“It helped revitalize surrounding areas with new lifestyle and cultural amenities,” said LendingRe’s Boomsma. “This type of corporate commitment draws a young workforce, who are attracted by the lifestyle, paired with the relative affordability.”

Todd Stofflet, a Managing Partner at the KIG CRE brokerage firm, said for the millennials who still cannot afford to buy a home, the Rust Belt also has a robust rental market. Millennials who are heavily indebted with student loans, auto debt, and high-interest credit card loans could discover that these low-cost regions are perfect strategies to break free from the debt ball and chain and start saving again. Restore capitalism and say goodbye to creditism, something the Federal Reserve and the White House would not be happy about.

Millennials are creating demand for new apartments, which is a “a catalyst for retail, grocery and office development,” Stofflet added. “As downtown populations experience a resurgence, so does the dining, entertainment and lifestyle of the area.”

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Although discounted real estate prices in Rust Belt regions are appealing in today’s overinflated Central Bank controlled markets, Daniela Andreevska, a marketing director at real estate data analytics company Mashvisor, cautioned millennials to learn about the dynamics of why these communities have low prices.

“One should keep in mind that many of the homes there are foreclosures or other types of distressed properties,” she said. “You should analyze and inspect the property well in order to know how much exactly you will have to pay in repairs before buying it.”

These migration trends indicate both positive and negative shifts: on one hand millennials are fleeing unaffordable large cities to Rust Belt regions, in an adverse reaction to failed economic policies to reinflate the housing market. On the other hand, for millennials with insurmountable debt, migrating to these low-cost regions could be the most viable solution to get their finances under control.

Source: ZeroHedge