Americans are living through the toughest housing market in a generation and, for some young people, the quintessential dream of owning a home is slipping away.
Mortgage rates surged in recent years, hitting the highest levels in more than two decades last fall. While rates have come down slightly since then, home prices remain painfully elevated and a limited inventory of housing is still failing to keep up with demand. Such conditions mean that housing has become woefully unaffordable.
Falling mortgage rates in recent weeks have helped, but home prices could remain sticky, according to economists. It’s still a cruddy time to be hunting for a home, but it’s even worse for young, first-time buyers who need to save up for a down payment and build up their credit score during a time when Baby Boomers are refusing to part with their big houses.
The situation isn’t a whole lot better for renters, with rents barely coming down from record highs and half of tenants in that market saying they can’t even afford their payments.
The uneasiness over America’s affordability crisis is captured clearly in surveys and polls, but data that outlines the sentiment specifically among young people is limited.
lol No shit CNN. What story is next, Water is wet, or maybe, Don’t stare at the sun?
I did the math and it would take me roughly 90 years to pay off a 2 bedroom fixer-upper.
Surprise twist, said fixer-upper is the place I rent currently.
Double surprise twist, I pay more in rent then the mortgage for this place, but don’t qualify to buy my own.
I’m stuck in the renters purgatory.
There are more twists still, but those are too personal.
it would take me roughly 90 years to pay off a 2 bedroom fixer-upper.
I live in a 1,200 sqft 2-bedroom house and it cost me $60k at the height of the market. It’s not even a fixer-upper.
You just think you’re entitled to live in places you can’t afford.
That’s awesome. Mine is a 1,400 sqft 2-bedroom valued at $1.2M. My landlord hasn’t raised rent in 7 years so I’m paying under market. (Don’t tell them)
Our city has a real big problem over here with homelessness. Downsizing isn’t the solution it used to be when single/studios are roughly equal or more expensive than 70yo homes.
Have you considered moving somewhere where demand is lower and supply is higher?
These would result in cheaper prices, but you’ll have to get over your entitlement.
People can’t move for a variety of reasons. Job. Family. Plus it costs a shit ton to move sometimes, especially if you’re moving far away. Seems like you’re the one being entitled. ‘Just move!’ has big ‘if they don’t like the country, they should just leave!’ energy.
Also, often there’s a lot of availability and cheap houses in certain places because the local economy is shit and so there aren’t any jobs.
The sheer “entitlement” of
- Not wanting to lose social network
- Not wanting to lose a job
- Not being able to pay double rent + deposit + moving costs all in the same timeframe
The “just move” crowd is so weird to me.
Why should you get access to things you can’t afford while other people do not?
The whole point is that “just move” is certainly not a silver bullet, it should not be a thing at all, and it can be literally impossible for some people. What we need is rules against people being extortet out of their money via rent. Because that is what “not being able to afford” a place that you could afford previously is.
High time we break out the guillotines.
Brit here. I’m 43, earning more than I ever have and have basically no hope of ever owning a home.
And Canada has been struggling with this for something like a decade. I am not Canadian, just adding to what you are saying in how this is not a problem that is limited to the USA.
We have the same problem as the US. Vote team red team or team blue. We have a team orange in Canada, however they’re seemingly unable to find strong leadership.
In the USA we get the option to allow the rich to mostly ignore us while they increase their profits, or for them to flat-out enslave us while they increase their profits. Truly the worst time-line:-(.
German here. Same shit with house prices here. Unbelievable expensive. Netherlands, Denmark, Swiss, France all the same. All out of the cheap money/ interests thanks to Lehmans & broker bros.
The only country where housing is affordable is China. They built way too many apartment buildings. Entire ghost towns. People are fucked there as well though. Standard people lost a lot of money. Crazy world.
