3 ms·

Hasn’t this been the case for many generations? Houses were way cheaper in 1980 and 1990 and 2000. I don’t think it’s particularly worse for millennials vs gen

Hasn’t this been the case for many generations? Houses were way cheaper in 1980 and 1990 and 2000. I don’t think it’s particularly worse for millennials vs genx.

ilyt 4y ago
It's becoming worse and worse over time
TrackerFF 4y ago
When I moved from home (almost 20 years ago) to study, I had to chose between living on campus - which came out to around $150 / month in only the rent, rent private for $200-$350, or purchase a smaller apartment. The apartment would cost around $50k-$100k, but back then the banks would give you a loan with as little as 5% down payment on the mortgage. A 20 year mortgage would cost around $200-$400 a month, depending on price of the apartment. Coming up with $2500-$5000 for a down payment was not that difficult, even for someone just finished in high-school. One could easily save that up over a summer or two. Fast forward 15 years, and the same apartments now goes for $250k-$350k. Rent is $1k minimum, and all the rooms on campus are either full and waitlisted, and you can only live there for 2 years anyway. Oh, and banks require a minimum of 15% for the down payment. And that's for the smallest, most basic "starter" units. The 2008-2009 crash killed all momentum, and building only reached the same pre-crash levels some 5-6 years later. This vacuum led to used housing exploding in price. I think the resentment comes from the fact that many young people are paying $1500 in monthly rent, while a mortgage for the same unit would come at $1000 / month. They go to the bank and apply for a loan, but the bank says "Sorry, you need to save up more for the down payment". Next year the same house is 5% more expensive, while the rent has also increased in the same manner - but salaries have not. Probably not a problem for us that are working in high-paying fields, but for regular people - especially young ones starting at the bottom - it probably seems like a race where the goalpost is being moved further and further away.

Hasn’t this been the case for many generations? Houses were way cheaper in 1980 and 1990 and 2000. I don’t think it’s particularly worse for millennials vs genx.

ilyt 4y ago

It's becoming worse and worse over time

TrackerFF 4y ago

When I moved from home (almost 20 years ago) to study, I had to chose between living on campus - which came out to around $150 / month in only the rent, rent private for $200-$350, or purchase a smaller apartment. The apartment would cost around $50k-$100k, but back then the banks would give you a loan with as little as 5% down payment on the mortgage. A 20 year mortgage would cost around $200-$400 a month, depending on price of the apartment. Coming up with $2500-$5000 for a down payment was not that difficult, even for someone just finished in high-school. One could easily save that up over a summer or two. Fast forward 15 years, and the same apartments now goes for $250k-$350k. Rent is $1k minimum, and all the rooms on campus are either full and waitlisted, and you can only live there for 2 years anyway. Oh, and banks require a minimum of 15% for the down payment. And that's for the smallest, most basic "starter" units. The 2008-2009 crash killed all momentum, and building only reached the same pre-crash levels some 5-6 years later. This vacuum led to used housing exploding in price. I think the resentment comes from the fact that many young people are paying $1500 in monthly rent, while a mortgage for the same unit would come at $1000 / month. They go to the bank and apply for a loan, but the bank says "Sorry, you need to save up more for the down payment". Next year the same house is 5% more expensive, while the rent has also increased in the same manner - but salaries have not. Probably not a problem for us that are working in high-paying fields, but for regular people - especially young ones starting at the bottom - it probably seems like a race where the goalpost is being moved further and further away.