How are young people getting ahead in life now financially with house prices/rates?

[OliverHeldens]

Ain't nobody buying houses right now is getting ahead.

[longfellowdeeds]

Same way they always have: saving a bigger down payment by renting way below your means, driving a used pos or taking public transit, getting a loan from family and then paying it back, and working hard to increase income

I was renting a basement suite under a family of six 10 years ago and now I have mortgages on two houses, and the people who are whining today were the same fukkers whining in 2013

10 years ago you could get a home for 125-250k here in Cali, those same homes are now starting at $450K. Step into reality.

[WoofieNugget]

Instead of "quiet quiting" their jobs and doing the bare minimum, commit to the job and actually work hard to try earn more money, gain promotions or increase their industry worth to increase salary at another company if needed.

This is a big part of it. People today don't realize how low the bar is at many companies, especially with a massive population of snowflakes and idiots who have entered the workforce in the last five years. What used to meet standards before is now a super performer at most places. My girlfriend's company hires basic idiots with barely any qualifications and all they have to do is basic entry level things, and they make 70k to start and get an insurance license paid for. But they still complain about how stressed they are all the time.

Meanwhile, people who actually do the job properly and perform can jump ship to another company within 2 years for a six figure salary easily.

During COVID I said it was a massive opportunity for people to move up fast because the steps that used to take 3-5 years now took 12-18 months.

[JohnCena24]

My buddy is a cop and he is pulls overtime. My dad worked in the jails and he pulled overtime. I'm a teacher and I do some side work and add credentials so my pay increases. Difficult is still doable... People really just don't want to try anymore. And I totally understand the economic situation has changed and shifted... but guess what? Boo hoo. I took off to the Middle East to teach so I can get a nest egg. That sh*t sucked... but life ain't easy, excuses and whining are.

how do you like teaching so far?

[Destor]

10 years ago you could get a home for 125-250k here in Cali, those same homes are now starting at $450K. Step into reality.

Damn only had a decade to either buy at the time or save up a down payment, surely those prices will be better by 2033

[HispanicDredz]

10 years ago you could get a home for 125-250k here in Cali, those same homes are now starting at $450K. Step into reality.

The only thing your getting for 450k in Cali is a cardboard box in a Ghetto infested with dingers, or an average home in the middle of the desert. You choose. Dingers, or desert.

[kengriffeyjr24]

People need to military max. You get free on base housing (I used to live in a really nice home on a base).

Afterwards use military benefits to attend college for free(or grad school)

If you aren't smart enough to attend a nice school and get a job as a doctor/lawyer banker etc, stay in for 20 years get a nice pension and then double dip as a contractor.

I know someone who's 38...pulling a pension and making over 150k as a contractor. He's living very well (no college)

[baldbrah]

Most of them have nothing to look forward to but social security, a crummy apartment or trailer home, and sharing cans of starkist tuna with their cat.

[Maestro]

Look for smaller houses. I guarantee I can find a starter home within 45 minutes of any of you here, with a mortgage of $2,500/month.

lol thats quite a bold statement to make. Try to find one where i'm at. I'm in the 92122 zip code.

[OptimusTrajan]

That's household income. Or two people making 35k.

[FAPhaggot]

They aren't.

House list prices have nearly doubled in 3 years, plus rates explodes, so monthly payments just went up 2.5x-3x in a snap and down payment savings got obliterated.

And people's ability to pay has fell behind, because wages have been real-negative since then as well. I don't want to see doctored CPI numbers, look at the sticker prices you pay on necessities like food and fuel. They're at least 50% higher today compared to 2019. Wages haven't gone up 50%, even at the bottom end of the pay scale that's been hit the hardest.

And that's the problem in a nutshell. It's not a case of people under 40 eating too much avocado toast, it's that we are all paying a silent inflation tax on $9T of raw money printing. And inflation is a regressive tax that always pressures people without means the most.

It's an easy tax to pass to. No votes to pass, no checks written to the govt, your $3/lb ground beef just gets a $2/lb Covid surcharge attached to it for the rest of your life. It will never go away, because heaven forbid that prices ever deflate.

[AncientYouth]

Get a time machine and go back to better times or get off your ass and compete

if you live in the West you have more luxury and are far better off than most of the world

[SirFapsAIot]

Yeah, about 3,500 usd per month tax free plus free apartment, free flights, free travel to and from work, free utilities and bonus one month pay per year worked... I was basically able to pocket way more than I could in the US. And the students despite being overall kind of bad... were still better because I could actually tell them to shut up and break up fights for real without risking a lawsuit or some nonsense. Now I'm in China making more money overall.

mirin' ded srs

[omnip0tent]

Make more money and don't be an average pleb.

I think the point of the question is that "Average" always exists. And hes asking how 50%+ of the people would/could do it.

Yes you can always try to be above average. But chances are you will just be average. Thats how stats work.

[katya422]

The houses they were buying were tiny little 2 bedrooms 1 bathroom houses without central AC. Not the best comparison

People are still comfortable now even renting. Being comfortable is fine, but it’s not being the top

No, sorry, that isn't correct.

$60K to $80K was an okay family income [location dependent] roughly through 2007.

When I was in my 20's and first looking to buy a home one better than you describe [50's bungalows, 3/1/1 with central A/C] were selling for around $50K in DFW. Brand new brick 3/2/2/ homes were going for $70K up to maybe $110K for nice family cul de sac type developments with square footage in the 1200 to 1800 range. One of my neighbor's homes is nicer than mine and she purchased for $70K in 1992.

We sold an older 3/2/2 brick home which we had updated [new kitchen] in a leafy DFW neighborhood with decent schools in 2013 for $130K and purchased a smaller 3/2/2 brick home in a very nice MI suburb for $171K in 2014. Both had central heat and air. These were not and are not depressed or crime ridden areas.

Middle class is dissolving. Some will move up to the "rich" classification, the rest will be in the "poor" category.

This is the problem. It isn't that some make it and some don't. It is that the percentage of people making it seems to be shrinking more quickly due to high price inflation and high interest rates.

How well will our society function when the middle class lifestyle is only enjoyed by the people between the 90th and 99th percentile for income? In some areas you could argue we are already there.

They aren't.

House list prices have nearly doubled in 3 years, plus rates explodes, so monthly payments just went up 2.5x-3x in a snap and down payment savings got obliterated.

And people's ability to pay has fell behind, because wages have been real-negative since then as well. I don't want to see doctored CPI numbers, look at the sticker prices you pay on necessities like food and fuel. They're at least 50% higher today compared to 2019. Wages haven't gone up 50%, even at the bottom end of the pay scale that's been hit the hardest.

And that's the problem in a nutshell. It's not a case of people under 40 eating too much avocado toast, it's that we are all paying a silent inflation tax on $9T of raw money printing. And inflation is a regressive tax that always pressures people without means the most.

It's an easy tax to pass to. No votes to pass, no checks written to the govt, your $3/lb ground beef just gets a $2/lb Covid surcharge attached to it for the rest of your life. It will never go away, because heaven forbid that prices ever deflate.

Interest only on the US debt has passed $1T a year and a recent bond auction was a bust [lack of buyers] which forced the primary dealers to eat 25% of the offering. It's ugly.

[Fang2]

Save as much money as possible, don't spend money on stupid sht you don't need, and move up quickly at your job. Most people fail at not spending money on stupid sht though.

[Bracket199]

Same way they always have: saving a bigger down payment by renting way below your means, driving a used pos or taking public transit, getting a loan from family and then paying it back, and working hard to increase income

I was renting a basement suite under a family of six 10 years ago and now I have mortgages on two houses, and the people who are whining today were the same fukkers whining in 2013

This.

Everyone I hear complaining about the housing market always wants what their parents (most likely) lived in during their youth - single family home, detached. Yet most parents probably started with smaller homes, built equity, and afforded a larger house. Young gen doesn't want to start at the bottom.

Also the fact that 0 people want to live within their means. My parents never took annual trips, and the young gen wants to ensure that they have multiple vacations/year.

[TugOfPeace]

Dual income households shouldnt be struggling to earn 150k. Just live in a one bedroom apartment for a couple years and there's the downpayment.

[FAPhaggot]

This.

Everyone I hear complaining about the housing market always wants what their parents (most likely) lived in during their youth - single family home, detached. Yet most parents probably started with smaller homes, built equity, and afforded a larger house. Young gen doesn't want to start at the bottom.

Also the fact that 0 people want to live within their means. My parents never took annual trips, and the young gen wants to ensure that they have multiple vacations/year.

My dad bought in 1991 at age 30. He worked on a printer manufacturing line in the USA, making $40k/yr by himself. Bought a 1200 sq ft house for $68k @ 9%.

That job doesn't exist anymore... it was offshored to China in 1999. The median household income in that city today is $53k, and that same house +30 years of age is worth $360k @ 8%.

[DesiredUserphag]

Don't try to "keep up with the johnsons"

You know CC debt is at all time highs, right? I doubt most people have their heads above water

[Titansfan08]

It's what they voted for and will continue to vote for

[BigTimeOperator]

I'm not really taking the side of the complainophiles, but they say they shouldn;t have to live like a pauper for 10+ years in order to eventually be able to get into a house.

They dont mind working and taking student loans to get job skills, but they expect them to pay off so they can have a place to live and a vehicle and savings and retirement and vacation and enough money to pay the student loans off, and that just isn't happening. They say it's not too much to ask in the weathiest country in the world.

Eventually, they are just going to go all Office Space and quit working and paying bills, then buy a van and bail to Slab City to do nothing but get on food stamps.

[SaltyDog920]

14 years ago I always cringed at 'but I can't afford a house, I'm just out of college'. Now, I think it's a very legitimate complaint. I bought my first house in 2008 while in college making $13 dollars an hour. I saved up 20% down on a $120k starter home and it was pretty easy. Granted my college tuition was cheap compared to many colleges.

Starter homes in my area are now like 220-250k and the price of everything else has exploded. Subway is $30 bucks for 2 footlongs and 2 drinks (no tip). That **** just a few years ago would have been $15 bucks. And a non poverty sub shop will be $40 for 2 people. I sound like an old person but I'm not looking back 20-40 years; I'm literally just looking back 4 years.

[omnip0tent]

I'm not really taking the side of the complainophiles, but they say they shouldn;t have to live like a pauper for 10+ years in order to eventually be able to get into a house.

They dont mind working and taking student loans to get job skills, but they expect them to pay off so they can have a place to live and a vehicle and savings and retirement and vacation and enough money to pay the student loans off, and that just isn't happening. They say it's not too much to ask in the weathiest country in the world.

Eventually, they are just going to go all Office Space and quit working and paying bills, then buy a van and bail to Slab City to do nothing but get on food stamps.

I for one am looking forward to seeing heads chopped off on the streets again. We are way too soft now.

[ConeyIslandDog]

The top people will get ahead, the mid people won’t. That’s how life works son

That was the literal promise of the american dream, that middle class could make it and now its destroyed. It used to actually be possible. Now there are only serfs and elites.

Its turning into a caste system where it will be increasingly impossible to ever escape serfdom. Todays young people arent ever going to own anything, they are going to lease and rent from the elites their entire life and never get ahead.

[katya422]

My dad bought in 1991 at age 30. He worked on a printer manufacturing line in the USA, making $40k/yr by himself. Bought a 1200 sq ft house for $68k @ 9%.

That job doesn't exist anymore... it was offshored to China in 1999. The median household income in that city today is $53k, and that same house +30 years of age is worth $360k @ 8%.

Individual effort matters, but it's silly to pretend there hasn't been a big shift in the difficulty of the game.

14 years ago I always cringed at 'but I can't afford a house, I'm just out of college'. Now, I think it's a very legitimate complaint. I bought my first house in 2008 while in college making $13 dollars an hour. I saved up 20% down on a $120k starter home and it was pretty easy. Granted my college tuition was cheap compared to many colleges.

Starter homes in my area are now like 220-250k and the price of everything else has exploded. Subway is $30 bucks for 2 footlongs and 2 drinks (no tip). That **** just a few years ago would have been $15 bucks. And a non poverty sub shop will be $40 for 2 people. I sound like an old person but I'm not looking back 20-40 years; I'm literally just looking back 4 years.

Too many things have increased by 50% to 100% in that 4 year period.

[baldbrah]

Maybe that's their plan. Use unbridled inflation to trigger the great reset.

[Maestro]

The only thing your getting for 450k in Cali is a cardboard box in a Ghetto infested with dingers, or an average home in the middle of the desert. You choose. Dingers, or desert.

I feel like a broken record saying this, but there's more to California than San Francisco/Los Angeles and San Diego. There's plenty of "affordable" housing in California, but its in places where people don't want to live:

https://www.zillow.com/homedetails/4...18267497_zpid/

https://www.zillow.com/homedetails/3...18229387_zpid/