What’s Happening in the News: June 1, 2020

Image Credit Ray Dalio

Welcome (or welcome back!) to our weekly news link roundup. This week, we have everything from prefab IKEA houses to currency devaluation, with some sobering statistics for millennials but maybe some encouragement too. Read on!

2020 Housing Forecast

We’re always watching the housing market around here. While predictions might not always be accurate, they can be a useful lens to look at the conditions and what’s likely to happen. Here’s a forecast from Danielle Hale of Realtor.com with some helpful insights. To sum up: she’s expecting things to level off. Inventory will likely remain low, but so will demand, as both sellers and buyers hesitate to get involved because of concerns over coronavirus. If you have a down payment and good credit, though, it’s a great time to buy since mortgage rates are likely to stay low and maybe even dip lower.

Tough Luck

It’s no secret that the pandemic has hit younger generations disproportionately hard. But are millennials the unluckiest generation in U.S. history? If you define luck in terms of economic opportunity, then yes. This article includes a number of interesting charts comparing young people’s financial outlook across multiple generations, going all the way back to 1792!

Fewer Millennial Entrepreneurs

Financial insecurity, or even a feeling of financial insecurity, is keeping millennials from starting their own businesses, says Kenny Xu at the Daily Signal. He also blames lack of community, a global economy, and cultural elitism, among other factors. Whatever the cause, it’s documented that fewer millennials are self-employed than other generations were at their age. But he also offers some helpful suggestions as to how we can turn this trend around, starting at home. If it’s been a goal of yours, beginning a venture while the economy’s in recession could turn out to be ideal. If you can “create something someone else actually wants” you’ll be in a position to really profit when the economy recovers.

More From Ray Dalio

If you’re a fan of Ray Dalio (or just want to understand economics better) check out The Changing Value of Money. It’s a long, information-packed read, but he’s highlighted the important points in bold print in case you only have time to scan it. You’ll still walk away with a better understanding of what’s actually happening when the government “creates” money, easing debt burdens but at the same time devaluing everyone’s assets.

Modular Homes From IKEA

On a lighter note, do you love IKEA? Instead of just filling your house with all their Scandinavian goodies, in the U.K., they now want to sell you the house itself! Ikea-owned modular home development company BoKlok has built thousands of homes for the Scandinavian market over the past twenty years in an Estonian factory. Now they’ve started manufacturing in the U.K. as well. In 2021, they’ll be available to British homebuyers in select markets. So what are they like? According to the article, “Timber-framed BoKlok homes are energy-efficient, emphasize natural light, and, of course, come kitted out with IKEA fixtures.”

Image courtesy of BoKlok

So What About You?

We hope you’ve enjoyed this week’s links, and we’d love to hear your thoughts. If you could buy a complete IKEA house off the shelf, so to speak, would you? Are you a self-employed millennial, and if so, how did you make that happen (or if you want to open your own business, what’s holding you back)? If you’re Gen-X or a Boomer who owns a business, maybe you have some encouragement to offer our younger readers.

Join the conversation, and stop by next week for more!

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