3 ms·
In southern California, a starter home goes for $800k or more. Which means it will be a jumbo loan, which means you will likely need the full 20% down. So aroun
by jjeaff 5y ago
In southern California, a starter home goes for $800k or more. Which means it will be a jumbo loan, which means you will likely need the full 20% down. So around $160k plus $3,500 a month. ($1,000 of which is for property taxes and insurance).
Just for the down payment, that's 73 years worth of avacado toast at a slice a day. Millennials must be eating so much avacado toast.
And that's for a house that was built in the 80s and the boomers selling it paid $75k and whose property taxes are still capped at a max growth rate of 2% a year.
- princeb 5y agowhy can't these millenials just eat like... 70 less avocado toasts a day.
- xibalba 5y agoSo don't live in Southern California? This is exactly the type of sacrifice people refuse to make to which I refer. "Avocado toast" is a metaphor for conspicuous consumption at the expense of savings and investment. Ex: $20 avocado toast at a brunch restaurant is absurdly unnecessary given the available options for sustenance. No one actually believes avocado toast alone is what prevents younger people from getting ahead. Show me a young person making over $40k per year and I PROMISE you I can find savings opportunities in their spending habits. This, coupled with long term compounding of returns, does make a real difference over the course of a life.
- jjeaff 5y agoMillennials are far more likely to change cities than their boomer or gen-x parents. Avacado toast or not, I'm not sure the data is settled on whether millennials waste more money than boomers or gen-xers. They just waste it on different things. Show me an older person making over $40k and I promise I'll find savings opportunities for them as well.
- cheriot 5y ago> So don't live in Southern California? People need to live where the jobs are. When cities permit offices, but not housing they're screwing people over. > "Avocado toast" is a metaphor for conspicuous consumption at the expense of savings and investment. Here's an example from national numbers: https://fred.stlouisfed.org/graph/?g=FYMk https://fred.stlouisfed.org/graph/?g=FYMk The price of a median house has gone from 3.6x the median salary to 5x. The ratios are worse in the cities that have added the most jobs. Framing this as a failure of personal behavior is missing the point. The current generation has to work harder than previous generations to achieve the same thing.