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The numbers that interest me are comparing home ownership rates at various ages between the generational groups Lots of research shows about a 8-10% gap, that
by Den_VR 10mo ago
The numbers that interest me are comparing home ownership rates at various ages between the generational groups
Lots of research shows about a 8-10% gap, that only at very specific ages finally achieved parity.
The consequence of this is a difference in wealth building, economic security, and family planning for millions.
- SilverElfin 10mo agoWhy does home ownership on its own matter? Net worth is inclusive of housing and assets and debt. And net worth is a direct measure of the wealth that is being built.
- johnnyanmac 10mo agoBecause homes are pretty much the only asset a millenial would have at that time that would have grown over time. a 08-9 graducate wouldn't really have much money to spar for stocks unless they made really lucky bets or happened to mine a fewbitcoin they forgot about. Most all else would have inflated or depreciated.
- bluGill 10mo ago401k and IRAs is where millennials should have their stocks and those have done very well over the years. There is little point in stocks elsewhere (unless you are very rich) since stocks are for long term investments and those two cover the retirement needs of nearly everyone (except the very rich), and there are few other savings needs people might have that stocks qualify for. Remember you won't live forever (at least not to current medical knowledge, you can bet otherwise if you want), and you can't take it with you (according to most religions). Thus once you have retirement covered and emergency savings you should be spending everything you earn. You should have enough money left at the end of the month to afford the things you buy at the end of the month, but there is no point in any more, enjoy life with what you earn. (donating to charity counts as enjoying life!)
- actionfromafar 10mo agoSomeone posted this already but a more useful "net worth" is how big of a shock can take without paying multiples on the sticker price. And even homes are now sieving into institutional buyers. https://medium.com/newco/your-financial-shock-wealth-4845e6dc1d2f https://medium.com/newco/your-financial-shock-wealth-4845e6d...
- shubb 10mo agoNet worth is a funny metric. Joe has a 300k house with 100k equity and 200k mortgage. He has 100k in stocks in a 401k. Net worth negative 100k. Pete has $300 in his cheques account, and isn't eligible for loans or mortgage. Net worth positive $300 Obviously Joe is richer than Pete though.
- chelmzy 10mo agoMost people would consider Joe's networth to be $200k.
- senordevnyc 10mo agoJoe’s net worth is $200k. Why on earth would you value the home at $0? Net worth = assets - liabilities
- quickthrowman 10mo ago> Obviously Joe is richer than Pete though. Yeah, because Joe’s net worth is $200,000 and Pete’s is $300 House equity = current value - mortgage balance You subtracted the mortgage twice, so your math is off by $200,000.00
- actionfromafar 10mo agoSubstitute some numbers until the example makes sense, the point is that net worth can be misleading.
- bluGill 10mo ago
- deleted 10mo ago[deleted]
- aianus 10mo agoAs a thought experiment would you not feel (much) poorer if houses suddenly cost >$5 million tomorrow and you didn't own one yet? Even if everything else cost the same? Even if everything else cost the same and your net worth went up $100k?
- aianus 10mo agoTo add to that, an unemployed 28 year old living with his parents in the house that they own is a "homeowner" in most of these homeowner stats.