Americans are living through the toughest housing market in a generation and, for some young people, the quintessential dream of owning a home is slipping away.
Mortgage rates surged in recent years, hitting the highest levels in more than two decades last fall. While rates have come down slightly since then, home prices remain painfully elevated and a limited inventory of housing is still failing to keep up with demand. Such conditions mean that housing has become woefully unaffordable.
Falling mortgage rates in recent weeks have helped, but home prices could remain sticky, according to economists. It’s still a cruddy time to be hunting for a home, but it’s even worse for young, first-time buyers who need to save up for a down payment and build up their credit score during a time when Baby Boomers are refusing to part with their big houses.
The situation isn’t a whole lot better for renters, with rents barely coming down from record highs and half of tenants in that market saying they can’t even afford their payments.
The uneasiness over America’s affordability crisis is captured clearly in surveys and polls, but data that outlines the sentiment specifically among young people is limited.
I did the math and it would take me roughly 90 years to pay off a 2 bedroom fixer-upper.
Surprise twist, said fixer-upper is the place I rent currently.
Double surprise twist, I pay more in rent then the mortgage for this place, but don’t qualify to buy my own.
I’m stuck in the renters purgatory.
There are more twists still, but those are too personal.
You’re paying for someone else’s house.
LaNdLoRdS pRoViDe A sErViCe ThOuGh!
I love it whenever some bootlicker unironically uses this as a talking point. “Who else is gonna rent you an apartment if there was no landlords???” Like, that’s kind of the whole point, chief lol.
I’m not sure where you live and how it works, but around here, mortgages can be significantly cheaper than rent. By several hundred dollars. Admittedly, this is not a desirable place to live, but you’re talking $1000/mo mortgage vs. $1300-1500/mo rent of a house the same size.
I did the math and it would take me roughly 90 years to pay off a 2 bedroom fixer-upper.
Where?
Explain how the rent is more than a mortgage if it would take you 90 years to pay it off
I’d still have to pay rent while saving for a down payment. That’s an easy $2500-$3400 a month with other cost of living expenses, retirement/savings, all while trying to save up a $120,000 down payment. Small homes start around $1M here.
If you don’t make 6-figures here, the city will drain your bank and spit you out.
it would take me roughly 90 years to pay off a 2 bedroom fixer-upper.
I live in a 1,200 sqft 2-bedroom house and it cost me $60k at the height of the market. It’s not even a fixer-upper.
You just think you’re entitled to live in places you can’t afford.
That’s awesome. Mine is a 1,400 sqft 2-bedroom valued at $1.2M. My landlord hasn’t raised rent in 7 years so I’m paying under market. (Don’t tell them)
Our city has a real big problem over here with homelessness. Downsizing isn’t the solution it used to be when single/studios are roughly equal or more expensive than 70yo homes.
Have you considered moving somewhere where demand is lower and supply is higher?
These would result in cheaper prices, but you’ll have to get over your entitlement.
People can’t move for a variety of reasons. Job. Family. Plus it costs a shit ton to move sometimes, especially if you’re moving far away. Seems like you’re the one being entitled. ‘Just move!’ has big ‘if they don’t like the country, they should just leave!’ energy.
Also, often there’s a lot of availability and cheap houses in certain places because the local economy is shit and so there aren’t any jobs.
The sheer “entitlement” of
- Not wanting to lose social network
- Not wanting to lose a job
- Not being able to pay double rent + deposit + moving costs all in the same timeframe
The “just move” crowd is so weird to me.
They’re not weird they’re spoiled as fuck
Why should you get access to things you can’t afford while other people do not?
The whole point is that “just move” is certainly not a silver bullet, it should not be a thing at all, and it can be literally impossible for some people. What we need is rules against people being extortet out of their money via rent. Because that is what “not being able to afford” a place that you could afford previously is.
Why should landlords and corporations?
Seems like you’re the one being entitled. ‘Just move!’ has big ‘if they don’t like the country, they should just leave!’ energy.
You’re just assuming that the only viable solutions are easy ones.
Also, often there’s a lot of availability and cheap houses in certain places because the local economy is shit and so there aren’t any jobs.
Then how do people live there? You clearly don’t know what you’re talking about.
Um, most don’t? That’s why housing is plentiful and cheap? Because most people there can’t afford it? Or have left for places that actually have jobs?
Seems you’re assuming that moving is the easy solution. And again, no, that’s not always true. Why is that so hard for you to accept?
Seems you’re assuming that moving is the easy solution.
No, you just assume that the only viable solutions are easy ones.
Keep waiting around for other people to solve your problems for you.
Brit here. I’m 43, earning more than I ever have and have basically no hope of ever owning a home.
I thought about this recently and realized -
Alot of it is because retirement is effectively a thing of the past. People are working longer and longer, many until they pass. Pushing-40 millennials are still “the youth” because the people calling us that are used to their parents retiring at 55-65 even though they’re that age now and NOWHERE close.
Plus, many of us can’t “move up” in our careers BECAUSE those older folk aren’t retiring anymore and giving up the “good” jobs (those that aren’t being eliminated entirely of course.) They call us kids for not having big baller positions that we can’t get cause they’ve held it for 25+ years. Same with housing - we’re kids for not buying, but they won’t sell and move on like they used to anymore while they fight new development tooth and nail.
TLDR they see 30-40 year Olds as “kids” because they see themselves as 30-40 when comparing their progress to that of their parents generation.
That’s odd, i bought a house in 2001, sold it in 2005, went kinda transient for 15 years, here there and everywhere, and bought another house 2 years ago. This is probably because i didn’t give up in the early 2000s.
Same. 40 yo, nearing the top of my industry in salary, and every time I look at the housing market, it doubles.
I was lucky enough to purchase my home before it doubled in value just under 6 years ago. And at a 2 and a quarter % rate. And now I’m locked into this house now because there’s no way I’m jumping out of a rate this low.
~8 years ago here, the numbers didn’t work out for me to drop my rate over covid but I found a house at $75k at 4.125 on a va loan, I recently bumped my payment to pay it off at 50 but my base mortgage is under $500. I’m not going anywhere.
And if you do, the market is just gonna crash and you’ll be stuck with that inflated mortgage and unable to move physically or financially.
Homeownership is dead, it’s time to build community land trusts instead
Have 4.7 acres of commercial property how could I turn that into affordable housing?
Talk to a real estate lawyer
if it’s zoned for commercial use you cant easily convert it into residential use, nor can it be done cheaply. not worth the time and effort.
I don’t want to convert it but can’t you build apartments on it our something?
That would be converting it to residential then.
Look into Habitat for Humanity. Pick up the phone, call and inquire. Just do it.
Attend the first meeting where they give a general outline of the program and put in your application.
5 of the 13 homes on my block were built by Habitat, and none of us would have got a mortgage without them.
Be glad to answer general questions, but the program rules vary by area.
lol No shit CNN. What story is next, Water is wet, or maybe, Don’t stare at the sun?
Um… It’s perfectly fine to look at the sun with your naked eye. Ask our last president.
I was going to post a similar sentiment. Maybe I’m being overly critical, but I remember when news was “new”. A version of this article comes out every other day.
I am 53 and live in DC. I bought just as the pandemic was starting when nobody knew what was going to happen and the rates were low. The market has since exploded and I could never have afforded the home I am in.
Honestly I gave up a long time ago
Wait, I heard this one before…
BuT tHe EcOnOMy iS GrEaT rIgHt NoW, EvEN FOx NeWS HaD To AGrEe.
That’s how you know they are conspiring.
Just gonna skip the sunset years myself and am gonna retire on a .38
High time we break out the guillotines.
And the majority of those who haven’t given up yet are simply delusional.
I’m considered young again! \o/
Some? Lol
Look into Habitat for Humanity. Pick up the phone, call and inquire. Just do it.
Attend the first meeting where they give a general outline of the program and put in your application.
5 of the 13 homes on my block were built by Habitat, and none of us would have got a mortgage without them.
Be glad to answer general questions, but the program rules vary by area.
