4 ms·
Its because it doesn't make sense to move out, the real estate markets stagnation makes taking out a huge loan almost feel like indentured servitude. why? Beca
by zarro 7y ago
Its because it doesn't make sense to move out, the real estate markets stagnation makes taking out a huge loan almost feel like indentured servitude.
why? Because it feels like your always working to pay off the landlord or the bank just so you can have somewhere to sleep. Even if you own it outright, property and taxes are 10k/y, now your paying $1k/m just to have a place to sleep before you can even spend money and work for the things that you want. The worst of it, is as prices go up there should be a huge push to build more to balance the market, but than you have all these huge artificial barriers to entry to build preventing that from happening.
So it makes sense to try to live with parents, make enough money to buy your house outright so at least than you have a chance to get out from indentured servitude.
To be honest most of us are just hoping the real estate market collapses, or these barriers to entry are overcome so that prices can drop because we are not willing to pay these prices which amount to servitude. Our refusal for this type of "life" is what causes a decreased in birth rates and growth in general in the economy.
- refurb 7y agoYou don’t think that 40 years ago people did the same? I remember my father buying a house for $30,000 (wow! So lucky) only to learn his home payment was over 50% of his take-home pay (oh, not so lucky).
- whymsicalburito 7y agoI would be super stoked if I could find a house to buy in SoCal and only have to spend 50% of my income!
- authoritarian 7y agoWhen my dad grew up (in Washington) he was able to pay his college tuition in full and save for a downpayment on his home by working in the kitchen at the university. Nowadays, if you went to University full time and then purchased a house out of college with your only income being a minor kitchen job at whatever school you attended you'd likely have $100k+ of debt
- refurb 7y agoDesirability of housing in particular cities changes over time. Post college I lived in a small town in Michigan and saved up a down payment for a house in 2 years making less than $50k. You can still do it, but not in the most desirable US cities.
- faissaloo 7y agoIf I could buy a house for 30k I would be over the moon.
- srj 7y agoThe mortgage price as a ratio to median income has gone up since then (nearly doubled iirc).