I think that meme is more reflective of younger millennials. I often think that if I was born 3 or 4 years earlier my life would have been a million times easier.
There’s a general split between those born early as a millennial(Think’81-‘88?ish) and those born later in the 90’s. Earlier Millennials are sometimes lumped with late gen x or just considered a micro generation(sometimes called the Oregon trail generation) because of how technology transformed literally as we grew up.
For example, I was born in ‘82, I graduated HS in 2001. We had a rotary phone when I was a kid and cell phones when I was in High School. The internet exploded and grew up at the same time as I was going through school. The youngest Millennials were 5 when I graduated, and they have always had the internet, not to mention a whole bunch of other minor cultural differences.
The reason an elder Millennial might have had an easier time, is we had longer to establish ourselves when house costs were still somewhat sane.
I have a daughter (just about to be an adult). We were fine until I "made too much" to live in our apartment that we had for 11 years. Then the cost of rent skyrocketed, and I could no longer afford the apartment we had for just 2 years.
If you wanted a family, I'm sorry that it seems unattainable for you. I can't even afford to get a place with my boyfriend. Rent for a 3 bed house is more than a mortgage... then factor in the deposit, which is 2x the rent. It all fucking sucks.
Graduated the same year and went straight into the military in 2009. Loads of training and free college. Was able to buy a house in 2016, got out of the military soon after, went into tech. I mean the military wasn't a cake walk but I lucked out on the timing.
Meanwhile, I got out of the military.
That Juicy VA Loan for a house doesn't mean anything when you simply just cannot afford a house anymore. I wish I joined the military at 6 years old and bought a house at 10.
I thought the same thing and I’m a younger millennial. I remember the classes above me had heavy military recruiting because jobs were not available and college hasn’t been cheap since the 80s.
If you were born in time to cash in on the gfc, you wouldn’t have because an unpaid internship doesn’t afford much house, even at deeply slashed discounts. They were afraid to lend in that era too.
Single millennial born in what some consider to be the cutoff year on the young end and it’s rough. I can’t afford even a dump in a bad neighborhood in my (smallish and relatively LCOL!) city, but if I took my current salary and time warped it back even to just 2020 I could have afforded a pretty decent starter home in an area I enjoy.
…But I didn’t buy a house then because I had literally just finished grad school.
94 and same, I got a bit of a late start but realistically if I'd gone to college right out of HS I'd be worse off right now as I'd have debt too.
Looking at housing prices just kills my motivation as I'm making decent money for the first time in my life, more than anyone in my family at the same age, and I'm so much further from owning even half of what they had at the same time.
There's a lot of us, push for change and vote, our time is coming we can make it happen.
Are you me because same. Also a SINK!! I just got my first career job last year after graduating in May 2023. Great salary, great job, but absolute shit in comparison to the market. The same salary but the housing market in 2020/21, I could afford a really decent home in a very desirable/well-to-do part of the city ALONE on my own income.
I was born in 84. When I was 19 or 20 I had a chance to buy a duplex that each side had 5 bedrooms and an attached garage with space for 2 cars. My mortgage would have been 650 a month, and I could have rented the one side out for 750 easily. If I hadn't left PA and not returned, that would have been rather nice.
My job was also within walking distance (well at that time). I would have been much better off. Then again things turned out OK. I now have a house that is a 5 minute drive and make nice money for the area (although my mortgage is $1200 but I am making a whole lot more).
Old millennial here: I did buy a house, but for $100k more than it had sold 18mo prior and it is a POS that is consuming all my money. For reference, my parents bought their first house 2 years younger than I did, and they had 4 kids, I had none. So while being an older millennial afforded me buying a 90 yo POS house, I’d say we’re not much better off than younger millennials and we’re still living shit lives compared to our parents.
Also ones that had somewhat more stable time growing up.
I felt behind most of my first years because looking back, I was being abused by my family.
I was giving free labor to my mom who had a disability, and she was stealing money from my bank account and I was working minimum wage jobs to pay my way through college.
It's a difficult what if. I'm middle millenial and started college during the financial crisis. I imagine if I was born 3-4 years earlier I would be fucked for a chunk of my earlier career. One of my friends is an elder millenial who graduated about 7 years before me, the first decade of his career even as an accountant sounded rough.
Yeah sure - graduate college right into the great recession. easy. survival bias.
I really hate memes like this. If it collapses, do you think your job is magically safe? Do you think banks are magically giving out 0 interest loans when prices are down? This type of thinking only applies to those that have $500K+ saved up in CASH. Even non-liquid stocks that require market timing to sell before the crash is not safe enough.
Me and all of my siblings looked at the 2008 recession and decided to go into the most market sheltered jobs there are:
Brother-Doctor,
Sister-teacher,
Me-infrastructure worker in government
Same.
But at the time home prices were still dropping. At least for us. That's also a situation where you have to consider the possibility your mortgage will be higher than your home value and you might be stuck in a house you bought on a starter salary. Moving for a new job might be very difficult. Having a family in a tiny home might be cramped.
In hindsight we bought at the correct time, almost exactly on the lowest of the dip. We got lucky. Hindsight is 20/20, or as the Dutch say: from behind you look the cow in its hole.
Yet I have to argue with people all the time as to why I don't work as hard as I did in my 20s, now I'm my 30s. I made way less money and could afford way more. Now I'm just divorced/lonely, broke, and broken. I got a $15k salary bump from 2020 and have way less quality of life today than I did then.
If I made this much 5 years ago I could have bought a house by myself, instead I'm stuck paying rent for more than what the house payment would have been.
I feel for you. In a tough spot myself. Worked same place for 10 years. Finally got to $29.70 an hour with insane benefits. Got fired. Broke my leg. About to start working at a liquor store. Not where I saw myself being at 30.
Lol the housing market ain't collapsing, folks. There may be slight dips, but there's no subprime bubble which is really the only time the housing market crashed in the recent past. People value houses and property, it's finite, and unless the entire economy collapses, you're not gonna get some cheap great house in three years while you still have a job. Do people really think this?
People really do not understand the crash in 2008 and assume that it’s cyclical. It’s not cyclical guys - rules were put in place to prevent a subprime crash again.
You never know what is lurking in the future but the most likely way prices go down significantly is our entire economy hits a rough patch in a way that a LOT of people lose their jobs all at once, and salaries or wages go down for even more. The very rich will then go on a spending spree buying everything on discount. - there are a lot of forces at work trying to prevent this kind of economic disaster from happening.
House values will drop in places people DON'T want to live and keep going up in places people DO want to live.
We're not building enough new housing. Zoning and permitting make it really hard (this is fixable) and the workforce that was building houses up to the financial crisis left and isn't coming back (not enough people to do the building).
Depends on where you are. The Texas market is frozen right now. Collapse may not be the word, but prices will come down… if people actually want to sell their home.
I think this is a common situation. Millennials who bought years ago are doing great, and those that have high paying jobs are doing well now, but if you don’t have a high paying job and didn’t buy a few years ago at least then you are hella screwed right now.
All the scared people told me it was about to collapse back in 17 when I bought. One of the best decisions I ever made, house is just under double what I paid.
I bought in 16 everyone told me it was a bad time. Everyone but my dad just kept telling me just get into something this isn’t absolutely permanent. I’m more then worth double now lol
In 2019 I genuine thought I'd overpaid, but I needed a place and knew it was long term. I could easily sell it at a 50% gain today if I wanted (I don't) so now feel like I got a bargain, especially with the low interest rate.
It's part of the problem. Inventory is low and prices are high. The 2008 recession killed new home building and we still haven't recovered. I imagine the pandemic didn't help either.
In my city it looks like every other home is for sale. There's a surplus of homes but few people are buying and boomer owners rather have their house sit for sale for a year rather than lowering the price.
We need to stop corpos and private equity from buying up family homes and artificially inflating the housing market, and keep [this](https://www.reddit.com/r/Economics/comments/1d8gsoa/the_fbis_recent_raid_on_cortland_management/) type of thing from happening
Time in the market beats timing the market. Even if a 2008 crash happens tomorrow prices would only drop 20%, and statistically would climb back to where they were in as little as 5 years.
Stop holding out and buy a home. Any home. Anything to build equity. If you don't have equity you will only fall further behind.
If a 2008 crash happened again do people magically have enough down payment for a slightly cheaper house? What are they going to pay their bills with when they lost their job during the crash?
Ummm you do know that when it's cutting time, they axe the high compensated first right? That underpaid guy who's been here 3 years is probably fine compared to the outside hire mid manager they paid top dollar for a year ago.
Any home is not correct. Buy 25% of your after tax income on a 15 or 30 year fixed loan (if 30 year pay off early as income rises, other expenses drop).
I personally will start to pay mine off early once my bank interest rate is below my mortgage rate.
I just would prefer the peace of having low monthly expenses and no debt. Plus the interest you save on your mortgage is guaranteed where non bank returns (outside of CDs/Fed bonds) are not guaranteed.
I want to. I really really want to. But the monthly mortgage payments alone are more than my entire paycheck. That's not counting property taxes and other bills...
For some people, starter houses are already at the top of our budgets and are getting bought out from under us by flippers, transplants, or firms offering cash at over asking price. (And no, I don’t live somewhere expensive, I live on the outskirts of a small city in the South.)
Fr, I make decent money and I just want a 2bd condo, in my area a decent one is starting in the mid 200s. They just aren't making "starter" homes anymore, you either get a 60 year old house with tons of maintenance or you get a 3000 sq/ft house with no yard. With the upkeep, they'll cost you the same.
In my area (suburban metro Detroit) multiple cities literally passed laws that new single family home construction must have a minimum of 2000 sqft. It’s illegal to build starter homes, and all the existing small ranch homes get snatched up with cash offers and waived inspections pretty much immediately. Meanwhile all the new builds are beige monstrosities that go for $500k minimum.
Townhomes are a great, especially when so many new build DSFH are DSFHINO that barely avoid touching via a tiny air gap. It's just hard to measure wall quality. Maybe tour two adjacent homes at once and have your partner shout at each other through the wall? idk lol
Some people are in a position where houses are too expensive close to work, but you can't afford a house without working...... so you can't move to where the cheaper houses are lol.
Or maybe they are dumb.
It's worth doing a rent vs buy calculation to see if it makes sense in your area. But If you save money from renting you just need to be investing that money elsewhere. Historically the stock market has better returns than real estate.
It's 18 months away in Metro Atlanta. There's no way the amount of homes being sold can be afforded, at least long term. For sale signs are already multiplying.
Millennial homeownership is on track with all previous generations, thanks for checking!
Source [data from census bureau](https://www.apartmentlist.com/research/homeownership-by-generation)
>*Today, 43 percent of millennial households own their homes. This homeownership rate sits* ***well below*** *other generations, but is growing the fastest. Millennial homeownership has increased steadily even through the aftermath of the Great Recession.*
That paragraph and graph are comparing homeownership rates of millennials to other generations that have had decades longer to work and save. Like yeah we are going to be below them.
You can see in the 1st graph that 60% of 40 year old Gen X had homes in 2019 and we are well on track to hit that. Even looking at the 3rd graph we sit at 59% for 38 year olds compared to the 62% for Gen X and 65% for Boomers. Which isn't a great suprise when you look at the effects '08 had on future home supply.
But that hardly paints a picture of us being a generation that's fucked from home ownership.
Yeah but since homeownership has been trending down with each previous generation, there's nothing noteworthy about being at the rock bottom of that trend.
/s
Every time this comes up someone does this and it always blows my mind cuz it literally says in the fucking source that they are behind as predicted. The only silver lining is we might be the first generation to reverse it which is kinda a given cuz if we don't then there just isn't gonna be a home owning next generation.
I'm a millennial who bought a house at the age of 28 during the pandemic. When I was shopping, rates were going up almost a quarter point a week. A house that was $200k a year before I bought it, I paid $300k for. Now it's worth over $350k and interest rates are over 7% compared to the 2.75% I have.
I watched, in real time, myself almost get priced out of home ownership. Had I had one unplanned expense at that time I would've paid tens to hundreds of thousands more for the same house, and had I waited six months, I wouldn't have been able to afford it at all.
It's not self-pity to recognize that the government royally screwed a certain segment of the population because they couldn't stop printing and spending and had to use inflation to control the cost of the debt they incurred.
Are you ever bummed that you’re probably stuck in the same house forever though?
I got a 3% rate during the pandemic and really never intended to stay here my whole life but now I realize I’m probably going to die here. It’s a great house but not in the city or state I’d like to be in permanently.
I’ll never get a deal like this on a house again. Why would I ever move? And I don’t want the economy to crash.
Similar boat for me. Wife and I bought a townhouse during the pandemic. It's nice, but I really want a single family residence so I can have my own yard and no HOA. But my mortgage rate is 3.25% and prices of single family homes hasn't come down at all in my area. We'll likely be here for a while.
You literally just explained how volatile the market is year to year and you bought at a good time and now’s a bad time I’m not sure what your upset about or you think there won’t be good times again or what
The housing market is not "volatile" prices almost never go down for long (unless it's a local area where something unusual happens). And there's less than zero reason to believe that interest rates will ever be 2-3% again...that was highly unusual.
So someone making the same above average salary I made can't afford to buy a house and start a family. Not sure why that's difficult to understand. Houses are 1.5x-2x more expensive than they were 4 years ago and they're not going to go down....they might spike or dip 10-20% here or there, but real estate does not go down long-term. That's why everyone who can invests in it.
lol I’m just so sick and tired of my friends being like things are shit. they just, visibly, aren’t, but I do understand loads of us have massive unresolved trauma from the 2008-2020 lost decade and need to see a therapist and get professional help
Looks pretty shit to me honestly rent is totally out of control, half of all young adults live at home, go on indeed its a sea of $17 an hour jobs that want masters degrees. You seem to like redfin so they also have data that 36% of millenaisl and gen z can only buy that house with a massive cash gift from their parents. So if you are one of those people who just has to work your way up and do not have parents that love them you are pretty fucked.
This meme is also stupid because if there is a 2008 style crash, it would also mean mass layoffs/unemployment and a stock market crash. So are these people sitting on giant piles of cash? Because if their savings are tied up in stock, that will be worth a lot less than they think and they wouldn’t be able to afford a down payment.
I'm not sure an article from 2020...let alone one before the pandemic that would kickstart a HUGE increase in prices and interest rates...is a great source for "hey guys you're on the right track!"
The Median to Elder Millenial demographic, 35-44, is about 5% behind the same age range in 1990 when the Median Boomer (born 1955) was 35. There was a slight Covid dip, but as of last year it looks like that recovered.
[https://fred.stlouisfed.org/series/CXUHOMEOWNLB0404M](https://fred.stlouisfed.org/series/CXUHOMEOWNLB0404M)
For the younger Millenial crowd it's hard to judge because they're lumped in with Gen Z but that's about the same level as the rate for under 35's in the 90s.
[https://fred.stlouisfed.org/series/CXUHOMEOWNLB0403M](https://fred.stlouisfed.org/series/CXUHOMEOWNLB0403M)
I was in college when my grandma died. I was married with a kid before my other grandma died. My parents are boomers. So I somewhat expect my kids (elementary school age) to be in college or already starting their families before my parents die and their house goes on the market. Estimates are that most, not all, baby Boomers will be dead by **2041 or 2042**. I suspect the trend change occurs by roughly 2032 and ends in 2042. Of course, you have to assume that these homes aren't all purchased by AirBnB hosts or property management firms large enough to absorb some unused housing inventory. You also have to balance any property value declines due to supply and demand against any inflation-based property nominal price increases.
Millennial with 3 kids here and we had our house under contract when COVID broke out, got furloughed at work for long enough to lose the mortgage along with all the money paid into the process up to that point.
The mortgage company did not care that my job recession proof government job was doing the furlough in a way that I would be netting more money due to the pandemic relief situation.
We simply were not approvable.
This was for a great 4-bedroom ranch, finished basement, large yard in a great school district. Everything we would have needed and around $1200 a month, less than our rent at the time. We tried to grab another house as quick as we could, once I had the requisite six months of non-furlough pay needed for the mortgage. it never worked out. Same house now is literally back on the market for almost double the price and the total payment estimates around $2700/month.
At least our rent has only gone up to $1700. We are stuck, seems like we will never get out of renting.
The only people buying homes during the last housing crash were all cash buyers. Banks weren't giving out mortgage loans. How many millennials are 6 figure cash positive?
I hate the housing market. To think your shitty built home gained 100k in value when nothing was done to it. It's not like the house grew another room. It just sat there and continued to decompose while appreciating in value. I hate it and it doesn't make sense. I hope the greedy mother fuckers that are taking advantage of the 'housing situation' get what they deserve one day.
You can afford a house. There are thousands of georgous large stater homes under 250k all over the county. But you have to be willing to relocate to an unpopular area. Just like immigrants and pioneers moved for a better life. The new homesteading is moving to a rural area of Ohio and buying a 2500 Sq ft Victorian.
Also, home prices will not come down unless there is a major great depression. The government only knows how to print more money. Inflation will get worse. Meaning prices will only go up on hard assets.
I’m not sure when moving to improve your life prospects became so unpopular. Like your grandpa came from 5000 miles away to start a whole new life and you can’t move 2 states away? There are plenty of up and coming large towns/small cities that have jobs and lower COL than the big cities. Picking up and moving isn’t easy but it isn’t impossible either. They have new construction homes in my town that are 200k. Good local economy centered around a military base and decent healthcare infrastructure.
The housing crash would require people being shaken out of their homes. Usually, this would be younger people with less equity and net worth. Therefore, Millennials would be shaken out of their homes for other Millennials to buy.
as a millenial homeowner, i have mixed feelings on this. 1, if i sell my home in a collapsed market i wont get much out of it. 2, my fellow millenials who dont own homes and want to, might be able to afford a house should they be able to get the loans they need, and if i sell, i may not get much but then it wont cost as much to get a similar place
but also, jobs may not be safe and it could be hard to get loans and if you do, at a high rate. its the short term vs long term effects of such a thing happening
the meme does really highligh the desire for those who want a house and how a crash COULD make hosuing affordable, but it doesnt realize the actual implications of a crash happening
Millennial who was hit by the Great Recession right out of college. I pay less per month renting at the moment than a mortgage with 20% down. I’m just going to keep renting and building my down payment in the meantime.
Don't sit around and wait. Actively support new construction in your community, particulalry of the [missing middle](https://missingmiddlehousing.com/).
It's a myth large corporations and flipping companies like to repeat to scare away first-time home buyers. Buy what you can afford when you can afford it will always be the smart advice until we blow up the world.
I’m on the older end of the millennial age, but I had to stay with my father before I could afford a home. Lived with him for 5 years and saved every bit I could. It sucked royally.
If I was renting, there would not have been a way for me to have enough money for a down payment. I see it with my friends too. A co-worker of mine makes good money; 120K-ish and she still lives in an apartment in Seattle with no way to save. In contrast, I was pocketing about 2-3K a month in savings and was able to buy in 2016. 400K. Homes of that price in the Seattle-area don’t exist. I live outside of Seattle and the cheapest home in my area sits at around 850K.
These days I only see a couple of ways for people to get into a home. Invest early and have that shit pan out or the dual income route or another catastrophic economic meltdown…
I sold a home I owned with my brother back in 2020. I took my half and bought another home, he put it in the bank thinking housing would go down even more.
Ehhhhh. So my new home is over double what I paid for it and he’s still holding out waiting for it to crash.
Unlikely anytime soon. Current issue is one of supply. Companies benefit from limiting supply - why build 20 houses and sell for $500k if I can build just 10 and sell for a million?
As for government intervention - you are placing your hopes on elected officials. Keep in mind the majority of voters are home owners, and their donors are investors. Neither of these parties wants a solution as a decrease in demand would greatly impact property values. So asking for intervention will fall on deaf ears. At best, they may give you more money to pay someone else, to ensure that demand remains high for houses the market couldn't otherwise bear - but the only people who benefit from that is the seller and the lender.
It's possible in the long term as the population declines that demand will lower - but we are talking a couple decades at least. Personally, I'm somewhat skeptical of this though - the number of investors in Real Estate has seen a large uptick in recent years. I think a lot of this overlaps with the fact FTHB's market share has been halved over the last decade. Even if you make as much as a current home owner, they don't even have to sell to beat you. Their CoL is lower, they can save more for a down-payment. This has a lot to do with rental inflation over the last few years v. such historically low mortgage rates. The kicker? Modern PM companies have swooped in to make "renting your first home rather than selling" attractive. Part of why so few starter homes are on the market, even when you factor in that they aren't built much anymore. So, don't expect a population decrease to rapidly decrease demand.
Although who knows - anything can happen. If houses stay unaffordable, that stinks. But could be worse.
I bought my house in 2011 at 23 after I got out the military for 144,000 and now it’s worth close to 500,000. This shit is crazy, but I’m very fortunate to have made good decisions.
If companies are outbidding you for prices as they are now, why would you think they wouldn’t outbid you for houses if they got cheaper? And that’s why they won’t get cheaper.
No, the ruling class have realized they can buy all the housing and then make us rent from them increasing their profits and keeping us under their boot.
Debt is crushing us. Plain and simple. If you didn’t have debt, how much home could you afford (30% or less of take home pay between mortgage, escrow) if you didn’t have debt? I’m not discounting inflation and the student loan crisis, just asking a personal inventory question.
The truth is, there are a lot of millennials in their late 30s and early 40s making good money and pissing it away on interest payments.
I never thought we’d be able to afford the home we purchased last year, but when we got out debt, we freed up money to save and move.
We purchased our starter home in 2007 before the recession and had to stay much longer than we expected. But the housing market rebounded and we were able to take the proceeds and put a good down payment down. I would’ve never wished for the market to stay down. It would’ve affected my resale and millions of others.
Get those greedy developers to build starter homes again so that you can buy something or so that older gems can downsize. Most developers are only building luxury house and condos right now. If you are waiting for market “collapse”, you might wanna sit down in a comfy chair. Population demands vs supply are out of balance.
I felt like this until I realized I wanted too much house. A 2 bedroom condo or small home is all I need, and it's crazy to think I can actually afford that in some places.
No. Non-resident investors and corporate landlords with lots of cash on hand are depleting the market pretty much everywhere people want to live.
No way houses are going to be affordable again until those practices are stopped.
There may be a markdown when demand dwindles, birthrate has been ever decreasing
But corporations may also keep buying everything out and subletting
It would be cool if local precincts started to disallow subletting homes, and only allow subletting apartment buildings. It's literally fucked everything up
There won't be a collapse unfortunately. Also the reality is that if there was a crash, most people couldn't either capitalize on it and be in a situation where they would be able to buy a house, or be safe from losing their jobs. People love to post this and post this meme but who's got 20% of a house to put down? Even if it corrected 50%, who has that sitting in a bank earmarked for a down payment?
Idk, there shouldn't be so much pressure to own a house. This shit is the last vestiges of the whole "American Dream" myth that doesn't exist anymore. Those of you who already have a house or are in a position to get one, congratulations! For the rest of us, don't let unrealized expectations or jealousy lower your self worth. Its a trap I fall into often, and shit is hard enough these days without having existential dread over things we have little to no control over.
Honestly, at this point I dont want to own a house. It'd be nice to have a space and land that I can do whatever I want with, but I prefer having time and energy for my hobbies and traveling than constant maintenance.
I had owned two homes having sold my last one in January. At this moment everything is wrong and looks a lot like 2008, except the money supply is more like the 1980s. This shit sucks and I am probably going to be stuck in my little apartment for the next 10 years.
My wife, at 23 (now 29), was able to buy a house with nobodies assistance by working long hours and saving. It was possible even for younger millennials if you were good at saving.
I wasn’t, but to claim it as impossible is asinine and lowkey lazy. It’s okay to admit to being lazy or bad with money. I think that’s what’s going on in a lot of cases.
I purchased two houses in 2021 - both 1-1.5x my annual salary and one of those in cash. Will purchase a 3rd this year - probably a duplex. Born in 88.
A good job, several side income businesses, living below my means and approaching two decades of investing got me there. I even took off of work for like 2yrs.
Yes. Crowd source. Get roommates to pay rent and not get equity, a go fund me, or start a personal LLC and sell stock shares in your future earnings aka get your wages garnished. /s
They never explained interest rates to us and how that is so much more important than the price. It's like the boomers were keeping it a damn secret. Like I even paid attention in college, have an economics degree... Nobody ever brought that shit up until 2020
I feel lucky to have gotten in at 6.2 this year tho. It's not 2.9, but I don't think rates are going to go down for a long time
I think that meme is more reflective of younger millennials. I often think that if I was born 3 or 4 years earlier my life would have been a million times easier.
Elder millennial here, not living the easy life
Whats a younger and older millennial? First time reading this
There’s a general split between those born early as a millennial(Think’81-‘88?ish) and those born later in the 90’s. Earlier Millennials are sometimes lumped with late gen x or just considered a micro generation(sometimes called the Oregon trail generation) because of how technology transformed literally as we grew up. For example, I was born in ‘82, I graduated HS in 2001. We had a rotary phone when I was a kid and cell phones when I was in High School. The internet exploded and grew up at the same time as I was going through school. The youngest Millennials were 5 when I graduated, and they have always had the internet, not to mention a whole bunch of other minor cultural differences. The reason an elder Millennial might have had an easier time, is we had longer to establish ourselves when house costs were still somewhat sane.
4 years ago 1mill houses were 500k here I got my first 100k job last year The timing.....
Imagine when you break 200k in 7 years those same homes have recently sold for 1.8 mil
I'm hoping to break 40k this year!
I would love to finally get over 40k a year... Elder millennial and have yet to get there.
I'm in the 50ks! But I live in California so I have 3 roommates 😭
Same. It's okay, I won't ever have a family, no biggie, small price to pay!
I have a daughter (just about to be an adult). We were fine until I "made too much" to live in our apartment that we had for 11 years. Then the cost of rent skyrocketed, and I could no longer afford the apartment we had for just 2 years. If you wanted a family, I'm sorry that it seems unattainable for you. I can't even afford to get a place with my boyfriend. Rent for a 3 bed house is more than a mortgage... then factor in the deposit, which is 2x the rent. It all fucking sucks.
Cool you are doing better than like 80% of Americans.
Yeah, graduating in 2008 was a fucking picnic, good point
Graduated the same year and went straight into the military in 2009. Loads of training and free college. Was able to buy a house in 2016, got out of the military soon after, went into tech. I mean the military wasn't a cake walk but I lucked out on the timing.
Meanwhile, I got out of the military. That Juicy VA Loan for a house doesn't mean anything when you simply just cannot afford a house anymore. I wish I joined the military at 6 years old and bought a house at 10.
I thought the same thing and I’m a younger millennial. I remember the classes above me had heavy military recruiting because jobs were not available and college hasn’t been cheap since the 80s.
If you were born in time to cash in on the gfc, you wouldn’t have because an unpaid internship doesn’t afford much house, even at deeply slashed discounts. They were afraid to lend in that era too.
Single millennial born in what some consider to be the cutoff year on the young end and it’s rough. I can’t afford even a dump in a bad neighborhood in my (smallish and relatively LCOL!) city, but if I took my current salary and time warped it back even to just 2020 I could have afforded a pretty decent starter home in an area I enjoy. …But I didn’t buy a house then because I had literally just finished grad school.
94 and same, I got a bit of a late start but realistically if I'd gone to college right out of HS I'd be worse off right now as I'd have debt too. Looking at housing prices just kills my motivation as I'm making decent money for the first time in my life, more than anyone in my family at the same age, and I'm so much further from owning even half of what they had at the same time. There's a lot of us, push for change and vote, our time is coming we can make it happen.
Vote for what exactly?
Sorry man, but voting isn't going to make the housing prices go down, it may slow down the ridiculous increases but it will never lower prices.
Are you me because same. Also a SINK!! I just got my first career job last year after graduating in May 2023. Great salary, great job, but absolute shit in comparison to the market. The same salary but the housing market in 2020/21, I could afford a really decent home in a very desirable/well-to-do part of the city ALONE on my own income.
I was born in 84. When I was 19 or 20 I had a chance to buy a duplex that each side had 5 bedrooms and an attached garage with space for 2 cars. My mortgage would have been 650 a month, and I could have rented the one side out for 750 easily. If I hadn't left PA and not returned, that would have been rather nice. My job was also within walking distance (well at that time). I would have been much better off. Then again things turned out OK. I now have a house that is a 5 minute drive and make nice money for the area (although my mortgage is $1200 but I am making a whole lot more).
Old millennial here: I did buy a house, but for $100k more than it had sold 18mo prior and it is a POS that is consuming all my money. For reference, my parents bought their first house 2 years younger than I did, and they had 4 kids, I had none. So while being an older millennial afforded me buying a 90 yo POS house, I’d say we’re not much better off than younger millennials and we’re still living shit lives compared to our parents.
Also ones that had somewhat more stable time growing up. I felt behind most of my first years because looking back, I was being abused by my family. I was giving free labor to my mom who had a disability, and she was stealing money from my bank account and I was working minimum wage jobs to pay my way through college.
Negative. Older milly and it’s just as bad. Now if I was raised with knowledge instead of being told college = good life. It could’ve been different.
It's a difficult what if. I'm middle millenial and started college during the financial crisis. I imagine if I was born 3-4 years earlier I would be fucked for a chunk of my earlier career. One of my friends is an elder millenial who graduated about 7 years before me, the first decade of his career even as an accountant sounded rough.
Elder millennial here and was lucky enough to buy a house early… but I’ll still never be able to move. Golden handcuffs are real
I feel like my life would’ve been easier if I had been born even one year younger *or* at least 5 years earlier.
Yup. Born in 86. Living the easy life
Yeah sure - graduate college right into the great recession. easy. survival bias. I really hate memes like this. If it collapses, do you think your job is magically safe? Do you think banks are magically giving out 0 interest loans when prices are down? This type of thinking only applies to those that have $500K+ saved up in CASH. Even non-liquid stocks that require market timing to sell before the crash is not safe enough.
I definitely got laid off my first job in 2010, but then I picked myself up, dusted myself off, and asked my dad for a referral to his company
Ah there it is!
Me and all of my siblings looked at the 2008 recession and decided to go into the most market sheltered jobs there are: Brother-Doctor, Sister-teacher, Me-infrastructure worker in government
I'm an older nearing 40. All I can say is that at least I got an affordable home 10 years ago.
Same. But at the time home prices were still dropping. At least for us. That's also a situation where you have to consider the possibility your mortgage will be higher than your home value and you might be stuck in a house you bought on a starter salary. Moving for a new job might be very difficult. Having a family in a tiny home might be cramped. In hindsight we bought at the correct time, almost exactly on the lowest of the dip. We got lucky. Hindsight is 20/20, or as the Dutch say: from behind you look the cow in its hole.
i fall in this category, and i've been working my ass off at multiple jobs + side hustle for my entire adult life.
Really starting to think hard work doesn’t pay off after all
Yet I have to argue with people all the time as to why I don't work as hard as I did in my 20s, now I'm my 30s. I made way less money and could afford way more. Now I'm just divorced/lonely, broke, and broken. I got a $15k salary bump from 2020 and have way less quality of life today than I did then. If I made this much 5 years ago I could have bought a house by myself, instead I'm stuck paying rent for more than what the house payment would have been.
I feel for you. In a tough spot myself. Worked same place for 10 years. Finally got to $29.70 an hour with insane benefits. Got fired. Broke my leg. About to start working at a liquor store. Not where I saw myself being at 30.
Thats brutal. The way life can drop a hammer on us and we just have to roll with it is mind numbing.
I know people that have been waiting for this since 2015.
literally me
how high are you waiting for it to go??
Oof. I'd recommend stop waiting and just save up what you can and do it
That used to me and finally decided to buy a few years ago after prices started skyrocketing.
Lol the housing market ain't collapsing, folks. There may be slight dips, but there's no subprime bubble which is really the only time the housing market crashed in the recent past. People value houses and property, it's finite, and unless the entire economy collapses, you're not gonna get some cheap great house in three years while you still have a job. Do people really think this?
People really do not understand the crash in 2008 and assume that it’s cyclical. It’s not cyclical guys - rules were put in place to prevent a subprime crash again. You never know what is lurking in the future but the most likely way prices go down significantly is our entire economy hits a rough patch in a way that a LOT of people lose their jobs all at once, and salaries or wages go down for even more. The very rich will then go on a spending spree buying everything on discount. - there are a lot of forces at work trying to prevent this kind of economic disaster from happening.
Also, the people who are worst off before an economic downturn usually fair the worst during and after a downturn.
House values will drop in places people DON'T want to live and keep going up in places people DO want to live. We're not building enough new housing. Zoning and permitting make it really hard (this is fixable) and the workforce that was building houses up to the financial crisis left and isn't coming back (not enough people to do the building).
Depends on where you are. The Texas market is frozen right now. Collapse may not be the word, but prices will come down… if people actually want to sell their home.
Prices will go back up when interest rates go down though. My house is still worth 40-50% more than when I bought it in 2020.
If I didn't buy when I did, I don't know if I'd ever have the chance again.
I think this is a common situation. Millennials who bought years ago are doing great, and those that have high paying jobs are doing well now, but if you don’t have a high paying job and didn’t buy a few years ago at least then you are hella screwed right now.
All the scared people told me it was about to collapse back in 17 when I bought. One of the best decisions I ever made, house is just under double what I paid.
I bought in 16 everyone told me it was a bad time. Everyone but my dad just kept telling me just get into something this isn’t absolutely permanent. I’m more then worth double now lol
In 2019 I genuine thought I'd overpaid, but I needed a place and knew it was long term. I could easily sell it at a 50% gain today if I wanted (I don't) so now feel like I got a bargain, especially with the low interest rate.
We need to build more homes. Only solution.
It's part of the problem. Inventory is low and prices are high. The 2008 recession killed new home building and we still haven't recovered. I imagine the pandemic didn't help either.
In my city it looks like every other home is for sale. There's a surplus of homes but few people are buying and boomer owners rather have their house sit for sale for a year rather than lowering the price.
Right so we need more homes to be built at price people willing to pay.
We need to stop corpos and private equity from buying up family homes and artificially inflating the housing market, and keep [this](https://www.reddit.com/r/Economics/comments/1d8gsoa/the_fbis_recent_raid_on_cortland_management/) type of thing from happening
Time in the market beats timing the market. Even if a 2008 crash happens tomorrow prices would only drop 20%, and statistically would climb back to where they were in as little as 5 years. Stop holding out and buy a home. Any home. Anything to build equity. If you don't have equity you will only fall further behind.
If a 2008 crash happened again do people magically have enough down payment for a slightly cheaper house? What are they going to pay their bills with when they lost their job during the crash?
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But those who survive and/or have recession-proof jobs would be THRIVING.
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Ummm you do know that when it's cutting time, they axe the high compensated first right? That underpaid guy who's been here 3 years is probably fine compared to the outside hire mid manager they paid top dollar for a year ago.
2008 is never happening again because what caused it was regulated away. There is no bubble.
You forget the fact that banks were giving out loans to people to buy houses they already couldn't afford before the crash.
Any home is not correct. Buy 25% of your after tax income on a 15 or 30 year fixed loan (if 30 year pay off early as income rises, other expenses drop).
Why would I do that (pay early)? If my mortgage interest is lower than the ROI on my portfolio or something else I'm into...
I personally will start to pay mine off early once my bank interest rate is below my mortgage rate. I just would prefer the peace of having low monthly expenses and no debt. Plus the interest you save on your mortgage is guaranteed where non bank returns (outside of CDs/Fed bonds) are not guaranteed.
So unless you make $250k, you're not getting a home lol..
20% would still be 100,000 off 500,000. That’s the exact drop that some people need
Honestly a 20% drop is really what I think all of it should cost. As you demonstrated here.
I bought my Seattle area house in 2011 for 10% less than it sold for in 1995.
I want to. I really really want to. But the monthly mortgage payments alone are more than my entire paycheck. That's not counting property taxes and other bills...
I don’t mean to sound ignorant, but look at other houses then…?
You’re not wrong. Sometimes a starter house isn’t your dream house and that’s ok. Building equity is what you want.
For some people, starter houses are already at the top of our budgets and are getting bought out from under us by flippers, transplants, or firms offering cash at over asking price. (And no, I don’t live somewhere expensive, I live on the outskirts of a small city in the South.)
Fr, I make decent money and I just want a 2bd condo, in my area a decent one is starting in the mid 200s. They just aren't making "starter" homes anymore, you either get a 60 year old house with tons of maintenance or you get a 3000 sq/ft house with no yard. With the upkeep, they'll cost you the same.
In my area (suburban metro Detroit) multiple cities literally passed laws that new single family home construction must have a minimum of 2000 sqft. It’s illegal to build starter homes, and all the existing small ranch homes get snatched up with cash offers and waived inspections pretty much immediately. Meanwhile all the new builds are beige monstrosities that go for $500k minimum.
I moved across the country to somewhere more affordable to buy.
I bought a townhouse. I share a wall but it's the biggest and nicest place I've had and my payment is much lower than a house would be
Townhomes are a great, especially when so many new build DSFH are DSFHINO that barely avoid touching via a tiny air gap. It's just hard to measure wall quality. Maybe tour two adjacent homes at once and have your partner shout at each other through the wall? idk lol
Heavily depends on area my beerguy. "Affordable" housing near me is just teardowns with a fresh coat of paint in a bad part of town.
Some people are in a position where houses are too expensive close to work, but you can't afford a house without working...... so you can't move to where the cheaper houses are lol. Or maybe they are dumb.
Affordable houses are often not close to the jobs people need to pay for them.
You cannot afford a mortgage. <-period
It's worth doing a rent vs buy calculation to see if it makes sense in your area. But If you save money from renting you just need to be investing that money elsewhere. Historically the stock market has better returns than real estate.
Except a home in a bad neighborhood. Try to get something in a decent location if you can.
Prices might crump, interest rates MAY drop some closer to the election, but don’t hold your breath. But when you can afford to buy, if that happens.
Interest rates are going to come down slowly. If they dropped quickly, we would likely reignite high inflation.
It's 18 months away in Metro Atlanta. There's no way the amount of homes being sold can be afforded, at least long term. For sale signs are already multiplying.
NOPE! So I just bought one anyway!
Happened in the 80s and 90s at times. It'll mean other problems...
I mean, a collapse? No. But I got in at a great rate back in 2021.
Same here. 2.65%. I bought myself a nice tomb.
Millennial homeownership is on track with all previous generations, thanks for checking! Source [data from census bureau](https://www.apartmentlist.com/research/homeownership-by-generation)
>*Today, 43 percent of millennial households own their homes. This homeownership rate sits* ***well below*** *other generations, but is growing the fastest. Millennial homeownership has increased steadily even through the aftermath of the Great Recession.*
That paragraph and graph are comparing homeownership rates of millennials to other generations that have had decades longer to work and save. Like yeah we are going to be below them. You can see in the 1st graph that 60% of 40 year old Gen X had homes in 2019 and we are well on track to hit that. Even looking at the 3rd graph we sit at 59% for 38 year olds compared to the 62% for Gen X and 65% for Boomers. Which isn't a great suprise when you look at the effects '08 had on future home supply. But that hardly paints a picture of us being a generation that's fucked from home ownership.
You know that this source shows millennials are behind previous generations on home ownership, right?
Yeah but since homeownership has been trending down with each previous generation, there's nothing noteworthy about being at the rock bottom of that trend. /s
Correct, "on track"
Every time this comes up someone does this and it always blows my mind cuz it literally says in the fucking source that they are behind as predicted. The only silver lining is we might be the first generation to reverse it which is kinda a given cuz if we don't then there just isn't gonna be a home owning next generation.
And it's from 2020.
But those pesky data points mess with our feelings of noble self pity and victimization, so we have to discard them and substitute vibes instead
I'm a millennial who bought a house at the age of 28 during the pandemic. When I was shopping, rates were going up almost a quarter point a week. A house that was $200k a year before I bought it, I paid $300k for. Now it's worth over $350k and interest rates are over 7% compared to the 2.75% I have. I watched, in real time, myself almost get priced out of home ownership. Had I had one unplanned expense at that time I would've paid tens to hundreds of thousands more for the same house, and had I waited six months, I wouldn't have been able to afford it at all. It's not self-pity to recognize that the government royally screwed a certain segment of the population because they couldn't stop printing and spending and had to use inflation to control the cost of the debt they incurred.
Are you ever bummed that you’re probably stuck in the same house forever though? I got a 3% rate during the pandemic and really never intended to stay here my whole life but now I realize I’m probably going to die here. It’s a great house but not in the city or state I’d like to be in permanently. I’ll never get a deal like this on a house again. Why would I ever move? And I don’t want the economy to crash.
Yeah same. Golden handcuffs for sure.
Similar boat for me. Wife and I bought a townhouse during the pandemic. It's nice, but I really want a single family residence so I can have my own yard and no HOA. But my mortgage rate is 3.25% and prices of single family homes hasn't come down at all in my area. We'll likely be here for a while.
You literally just explained how volatile the market is year to year and you bought at a good time and now’s a bad time I’m not sure what your upset about or you think there won’t be good times again or what
The housing market is not "volatile" prices almost never go down for long (unless it's a local area where something unusual happens). And there's less than zero reason to believe that interest rates will ever be 2-3% again...that was highly unusual. So someone making the same above average salary I made can't afford to buy a house and start a family. Not sure why that's difficult to understand. Houses are 1.5x-2x more expensive than they were 4 years ago and they're not going to go down....they might spike or dip 10-20% here or there, but real estate does not go down long-term. That's why everyone who can invests in it.
Are you suggesting that housing prices are just as likely to go back to $200k? It's not just "volatile" if prices still only go up.
💯
lol I’m just so sick and tired of my friends being like things are shit. they just, visibly, aren’t, but I do understand loads of us have massive unresolved trauma from the 2008-2020 lost decade and need to see a therapist and get professional help
Looks pretty shit to me honestly rent is totally out of control, half of all young adults live at home, go on indeed its a sea of $17 an hour jobs that want masters degrees. You seem to like redfin so they also have data that 36% of millenaisl and gen z can only buy that house with a massive cash gift from their parents. So if you are one of those people who just has to work your way up and do not have parents that love them you are pretty fucked.
This meme is also stupid because if there is a 2008 style crash, it would also mean mass layoffs/unemployment and a stock market crash. So are these people sitting on giant piles of cash? Because if their savings are tied up in stock, that will be worth a lot less than they think and they wouldn’t be able to afford a down payment.
I'm not sure an article from 2020...let alone one before the pandemic that would kickstart a HUGE increase in prices and interest rates...is a great source for "hey guys you're on the right track!"
The Median to Elder Millenial demographic, 35-44, is about 5% behind the same age range in 1990 when the Median Boomer (born 1955) was 35. There was a slight Covid dip, but as of last year it looks like that recovered. [https://fred.stlouisfed.org/series/CXUHOMEOWNLB0404M](https://fred.stlouisfed.org/series/CXUHOMEOWNLB0404M) For the younger Millenial crowd it's hard to judge because they're lumped in with Gen Z but that's about the same level as the rate for under 35's in the 90s. [https://fred.stlouisfed.org/series/CXUHOMEOWNLB0403M](https://fred.stlouisfed.org/series/CXUHOMEOWNLB0403M)
Right, post it is then! Now a majority of millennials are homeowners! [source](https://www.redfin.com/news/homeownership-rate-by-generation-2023/)
Heyyyy that's better! 😆. I have no dog in this argument. I'm a millennial homeowner. Interesting read though!
Source literally says otherwise
My millennial friends have houses.
I was in college when my grandma died. I was married with a kid before my other grandma died. My parents are boomers. So I somewhat expect my kids (elementary school age) to be in college or already starting their families before my parents die and their house goes on the market. Estimates are that most, not all, baby Boomers will be dead by **2041 or 2042**. I suspect the trend change occurs by roughly 2032 and ends in 2042. Of course, you have to assume that these homes aren't all purchased by AirBnB hosts or property management firms large enough to absorb some unused housing inventory. You also have to balance any property value declines due to supply and demand against any inflation-based property nominal price increases.
Millennial with 3 kids here and we had our house under contract when COVID broke out, got furloughed at work for long enough to lose the mortgage along with all the money paid into the process up to that point. The mortgage company did not care that my job recession proof government job was doing the furlough in a way that I would be netting more money due to the pandemic relief situation. We simply were not approvable. This was for a great 4-bedroom ranch, finished basement, large yard in a great school district. Everything we would have needed and around $1200 a month, less than our rent at the time. We tried to grab another house as quick as we could, once I had the requisite six months of non-furlough pay needed for the mortgage. it never worked out. Same house now is literally back on the market for almost double the price and the total payment estimates around $2700/month. At least our rent has only gone up to $1700. We are stuck, seems like we will never get out of renting.
The only people buying homes during the last housing crash were all cash buyers. Banks weren't giving out mortgage loans. How many millennials are 6 figure cash positive?
The prices won't collapse, and it'll only be harder to buy your first home from here. Sorry, but it is what it is.
Don't like half of millennials own property now?
More than half of our generation are homeowners…
I hate the housing market. To think your shitty built home gained 100k in value when nothing was done to it. It's not like the house grew another room. It just sat there and continued to decompose while appreciating in value. I hate it and it doesn't make sense. I hope the greedy mother fuckers that are taking advantage of the 'housing situation' get what they deserve one day.
Let's just pool our money together and live in a commune
its fun because housing cannot collapse until millenials finish buying.
You can afford a house. There are thousands of georgous large stater homes under 250k all over the county. But you have to be willing to relocate to an unpopular area. Just like immigrants and pioneers moved for a better life. The new homesteading is moving to a rural area of Ohio and buying a 2500 Sq ft Victorian. Also, home prices will not come down unless there is a major great depression. The government only knows how to print more money. Inflation will get worse. Meaning prices will only go up on hard assets.
I’m not sure when moving to improve your life prospects became so unpopular. Like your grandpa came from 5000 miles away to start a whole new life and you can’t move 2 states away? There are plenty of up and coming large towns/small cities that have jobs and lower COL than the big cities. Picking up and moving isn’t easy but it isn’t impossible either. They have new construction homes in my town that are 200k. Good local economy centered around a military base and decent healthcare infrastructure.
The housing crash would require people being shaken out of their homes. Usually, this would be younger people with less equity and net worth. Therefore, Millennials would be shaken out of their homes for other Millennials to buy.
as a millenial homeowner, i have mixed feelings on this. 1, if i sell my home in a collapsed market i wont get much out of it. 2, my fellow millenials who dont own homes and want to, might be able to afford a house should they be able to get the loans they need, and if i sell, i may not get much but then it wont cost as much to get a similar place but also, jobs may not be safe and it could be hard to get loans and if you do, at a high rate. its the short term vs long term effects of such a thing happening the meme does really highligh the desire for those who want a house and how a crash COULD make hosuing affordable, but it doesnt realize the actual implications of a crash happening
We missed it already. If you didn’t snap up a house in 2009-2010 you , and me, are probably out of luck.
This makes me sad about my life AND miss my grandmother. Damn.
Millennial who was hit by the Great Recession right out of college. I pay less per month renting at the moment than a mortgage with 20% down. I’m just going to keep renting and building my down payment in the meantime.
Don't sit around and wait. Actively support new construction in your community, particulalry of the [missing middle](https://missingmiddlehousing.com/).
It's a myth large corporations and flipping companies like to repeat to scare away first-time home buyers. Buy what you can afford when you can afford it will always be the smart advice until we blow up the world.
I'm on my third one (technically the first two were condos)
I got my house the old fashioned way: bought it from an old lady who needed money quick to pay for her medical bills. Great country we have here.
It was affordable up until 2020 I doubt there will be a collapse but it could go back closer to those prices
I’m on the older end of the millennial age, but I had to stay with my father before I could afford a home. Lived with him for 5 years and saved every bit I could. It sucked royally. If I was renting, there would not have been a way for me to have enough money for a down payment. I see it with my friends too. A co-worker of mine makes good money; 120K-ish and she still lives in an apartment in Seattle with no way to save. In contrast, I was pocketing about 2-3K a month in savings and was able to buy in 2016. 400K. Homes of that price in the Seattle-area don’t exist. I live outside of Seattle and the cheapest home in my area sits at around 850K. These days I only see a couple of ways for people to get into a home. Invest early and have that shit pan out or the dual income route or another catastrophic economic meltdown…
380k for a house built in the 60s with make up on. By the outskirts of Dallas Texas. 1 hour drive to any major employer.
Was everyone asleep during the record low interest during covid?
I sold a home I owned with my brother back in 2020. I took my half and bought another home, he put it in the bank thinking housing would go down even more. Ehhhhh. So my new home is over double what I paid for it and he’s still holding out waiting for it to crash.
Unlikely anytime soon. Current issue is one of supply. Companies benefit from limiting supply - why build 20 houses and sell for $500k if I can build just 10 and sell for a million? As for government intervention - you are placing your hopes on elected officials. Keep in mind the majority of voters are home owners, and their donors are investors. Neither of these parties wants a solution as a decrease in demand would greatly impact property values. So asking for intervention will fall on deaf ears. At best, they may give you more money to pay someone else, to ensure that demand remains high for houses the market couldn't otherwise bear - but the only people who benefit from that is the seller and the lender. It's possible in the long term as the population declines that demand will lower - but we are talking a couple decades at least. Personally, I'm somewhat skeptical of this though - the number of investors in Real Estate has seen a large uptick in recent years. I think a lot of this overlaps with the fact FTHB's market share has been halved over the last decade. Even if you make as much as a current home owner, they don't even have to sell to beat you. Their CoL is lower, they can save more for a down-payment. This has a lot to do with rental inflation over the last few years v. such historically low mortgage rates. The kicker? Modern PM companies have swooped in to make "renting your first home rather than selling" attractive. Part of why so few starter homes are on the market, even when you factor in that they aren't built much anymore. So, don't expect a population decrease to rapidly decrease demand. Although who knows - anything can happen. If houses stay unaffordable, that stinks. But could be worse.
I bought my house in 2011 at 23 after I got out the military for 144,000 and now it’s worth close to 500,000. This shit is crazy, but I’m very fortunate to have made good decisions.
If companies are outbidding you for prices as they are now, why would you think they wouldn’t outbid you for houses if they got cheaper? And that’s why they won’t get cheaper.
No, the ruling class have realized they can buy all the housing and then make us rent from them increasing their profits and keeping us under their boot.
All the while charging us pet rent. :|
Hate to break this to you but the majority Millennials have already bought a house...
I am fortunate in that I will be able to inherit.
Today I learned I'm considered upper-middle class. My response was, "ppsshhhh, ppffthptbtt."
I looked up the ranges. I am upper class. Sure does not feel that way.
Debt is crushing us. Plain and simple. If you didn’t have debt, how much home could you afford (30% or less of take home pay between mortgage, escrow) if you didn’t have debt? I’m not discounting inflation and the student loan crisis, just asking a personal inventory question. The truth is, there are a lot of millennials in their late 30s and early 40s making good money and pissing it away on interest payments. I never thought we’d be able to afford the home we purchased last year, but when we got out debt, we freed up money to save and move. We purchased our starter home in 2007 before the recession and had to stay much longer than we expected. But the housing market rebounded and we were able to take the proceeds and put a good down payment down. I would’ve never wished for the market to stay down. It would’ve affected my resale and millions of others.
When it collapses it will be because of something g very bad happening.
I can't stop laughing.
Bought in 2020
Get those greedy developers to build starter homes again so that you can buy something or so that older gems can downsize. Most developers are only building luxury house and condos right now. If you are waiting for market “collapse”, you might wanna sit down in a comfy chair. Population demands vs supply are out of balance.
Bought mine 5 yrs ago for 140k, made in the year 2000. Pretty cheap I guess.
I felt like this until I realized I wanted too much house. A 2 bedroom condo or small home is all I need, and it's crazy to think I can actually afford that in some places.
No. Non-resident investors and corporate landlords with lots of cash on hand are depleting the market pretty much everywhere people want to live. No way houses are going to be affordable again until those practices are stopped.
There may be a markdown when demand dwindles, birthrate has been ever decreasing But corporations may also keep buying everything out and subletting It would be cool if local precincts started to disallow subletting homes, and only allow subletting apartment buildings. It's literally fucked everything up
Nope
There won't be a collapse unfortunately. Also the reality is that if there was a crash, most people couldn't either capitalize on it and be in a situation where they would be able to buy a house, or be safe from losing their jobs. People love to post this and post this meme but who's got 20% of a house to put down? Even if it corrected 50%, who has that sitting in a bank earmarked for a down payment?
Ironically I bought a house in 2014. Got divorced and didn’t get the house. He reaped all the profits and now I rent with no end in sight.
I gave up and bought one last year. Doing okay but who knows when/if I can refinance a lower interest rate. :|
Boomers will be all be croaking before this happens, then there will be more houses.
Idk, there shouldn't be so much pressure to own a house. This shit is the last vestiges of the whole "American Dream" myth that doesn't exist anymore. Those of you who already have a house or are in a position to get one, congratulations! For the rest of us, don't let unrealized expectations or jealousy lower your self worth. Its a trap I fall into often, and shit is hard enough these days without having existential dread over things we have little to no control over.
Honestly, at this point I dont want to own a house. It'd be nice to have a space and land that I can do whatever I want with, but I prefer having time and energy for my hobbies and traveling than constant maintenance.
Yep… have owned multiple houses in a LCOL area for the last 12 years.
Yea that pre-pandemic cut off is real. Sorry everyone. I hope the NIMBYs drop dead and we can make more houses for you
Not until you eat the rich. Let's Goooooooo!
I bought a house while I waited
Unless you have hundreds of thousands of dollars in cash a housing market crash will not help you.
I had owned two homes having sold my last one in January. At this moment everything is wrong and looks a lot like 2008, except the money supply is more like the 1980s. This shit sucks and I am probably going to be stuck in my little apartment for the next 10 years.
What? Again??? Millennials all had their chance for a long-ass time. Now maybe this would make sense if it was for Gen-Z
I my 30s still waiting for the right time. :(
No but gas came down about 18 cent!
He’s looking up because the crash is so big! ☺️
My wife, at 23 (now 29), was able to buy a house with nobodies assistance by working long hours and saving. It was possible even for younger millennials if you were good at saving. I wasn’t, but to claim it as impossible is asinine and lowkey lazy. It’s okay to admit to being lazy or bad with money. I think that’s what’s going on in a lot of cases.
I purchased two houses in 2021 - both 1-1.5x my annual salary and one of those in cash. Will purchase a 3rd this year - probably a duplex. Born in 88. A good job, several side income businesses, living below my means and approaching two decades of investing got me there. I even took off of work for like 2yrs.
Oh just wait. Then you do afford it the taxes and mortgage rates are wild. House poor is a real thing.
Yes. Crowd source. Get roommates to pay rent and not get equity, a go fund me, or start a personal LLC and sell stock shares in your future earnings aka get your wages garnished. /s
Won't be until these rich bastards fuck off and move to Mars in the 2030's era....
Gen Z here, we're waiting for that too! ...Though a good number of us have already given up hope of ever actually owning the land we live on.
I too would like this to happen soon so we can refinance out of this insane 7.125% we're in.
Everything's affordable if you make enough money.... /s
We don’t need it to collapse. We literally just need to build more housing.
This is the new bottom friend. Don't let anyone tell you different
From scrolling social media platforms, Young "adult content creators" don't seem to be having problems becoming homeowners in this economy...
When you say “we”, are you thinking like a group effort?
They never explained interest rates to us and how that is so much more important than the price. It's like the boomers were keeping it a damn secret. Like I even paid attention in college, have an economics degree... Nobody ever brought that shit up until 2020 I feel lucky to have gotten in at 6.2 this year tho. It's not 2.9, but I don't think rates are going to go down for a long time