Housing and young people – why is this not a solution?

[Anonymous]

How many graduates make that much money straight out of school? You are also assuming that they make $100K but spend less than 850/month. I cannot imagine most people who make that much would likely decide it was important to never go out and entertain, go on dates, buy specific foods.

You also have parents who want to pay *all* expenses for the kid (food, transportation) for 10 years.

[Anonymous]

Anonymous wrote:How does dating work though when you live at home? My parents were crazy and I had a 10pm curfew, midnight on weekends (I lived at my parent's home in the summer during my internships). I also would never have been allowed to bring someone home to stay the night, even a long term boyfriend.

I think it's much better to live with roommates. We split cheap apartments with 3-5 other people.

It's not "cheap" if you want to live anywhere within easy commuting distance of the major job centers in DC or NoVA.

Back in 2014, I was paying $1100/month for the nicest and largest room in a Columbia Heights group house. With inflation, that's around $1450/month today (and seems to align with rowhouse rentals I'm finding on Zillow). If you're making $75k as a 22 year-old, then the rent for a room in DC rowhouse is 30% of your monthly take home - but before any deductions for retirement, health/dental insurance, etc.

It's going to take a looooooooooong time to save up even a 10% downpayment for a $400K condo. Moving in with your parents for a few years really quickens the pace.

[Anonymous]

Who earns 100k straight out of college with just a bachelor’s degree? That sounds like fantasyland. Even people with business degrees aren’t bringing that much in two years after graduation typically.

[Anonymous]

Anonymous wrote:How many graduates make that much money straight out of school? You are also assuming that they make $100K but spend less than 850/month. I cannot imagine most people who make that much would likely decide it was important to never go out and entertain, go on dates, buy specific foods.

You also have parents who want to pay *all* expenses for the kid (food, transportation) for 10 years.

Especially after paying for 4 years of college. Delaying their own lives in favor of having a child until 30.

[Anonymous]

Anonymous wrote:Who earns 100k straight out of college with just a bachelor’s degree? That sounds like fantasyland. Even people with business degrees aren’t bringing that much in two years after graduation typically.

+1 people are disconnected from reality. It's a very, very small segment of jobs that pay this much.

[Anonymous]

And the parents have to be NOT charging their kids rent, AND the parents have to be non-abusive. I lived at home to age 23, and was paying $800 a month in rent and my parents were abusive and controlling. Plus I have severe learning disabilities which made college nearly impossible and when I finally moved out I had a job paying about $40k per year. I could NOT get a job that pays six figures.

[Anonymous]

Anonymous wrote:How many graduates make that much money straight out of school? You are also assuming that they make $100K but spend less than 850/month. I cannot imagine most people who make that much would likely decide it was important to never go out and entertain, go on dates, buy specific foods.

You also have parents who want to pay *all* expenses for the kid (food, transportation) for 10 years.

Tax-free way to share your assets with a kid and give them a leg up in life.

[Anonymous]

This is already a solution in many immigrant families. And in places like Seoul where the housing is ridiculously expensive. But all relationships need to work for this as people want to date and marry before 30.

[Anonymous]

I make $100k as a teacher with 20 years experience. Took me til THIS year to make that much.

[Anonymous]

I would never have wanted to live my parents for my entire 20s, and I definitely don’t want my kids to live with me until they are 30 either! Dating while living with your parents sounds miserable. My 20s were awesome, living with other people my age, eating ramen and going out. By 30, I was married with a kid.

I’m sure it’s the best option for some people, but definitely not most.

[Anonymous]

My son did this and saved $100k or so over 2 1/2 years before he moved out. It works and has been done for generations.

[Anonymous]

Anonymous wrote:Who earns 100k straight out of college with just a bachelor’s degree? That sounds like fantasyland. Even people with business degrees aren’t bringing that much in two years after graduation typically.

I appreciate that this is not "common" but new grads going into competitive jobs are routinely making 200K+ a year (including equity and sign on bonus). Kids going into trading are making even more. Just helped my sister negotiate a $200K starting offer at a large tech company in CA, and my cousin at a trading firm made $300K his first year out of college (this was also several years ago so for new grads in algo trading it is even higher now).

[Anonymous]

Anonymous wrote:What a bubble you live in.

Exactly!

However, the point is valid. Live at home if you can, live with roommates so you cut your rent in half. Make every effort to save $$$ in your 20s.

[Anonymous]

Anonymous wrote:You're assuming the kid has a high paying job that's commutable from the parents' house (or remote).

It's interesting to note that we've gone from a country of opportunities and geographic mobility, to a country where your best option is to move back to your parents' house.

It's always been the best/smartest option. Live at home for 2-3 years and save as much as you can/pay off any loans so you can purchase a home as soon as you are ready to manage that (maintenance, plan to live there for 5+ years, etc). It's just "not cool" to do, so most kids don't want to. I knew people who did it 30+ years ago, all so they could pay off their student loans in 1-2 years and save a bit to get started. If your job is located so that you can do that, why wouldn't you?

[Anonymous]

Anonymous wrote:Not uncommon for kids to do this in my Asian community. But it's more like 2-4 years after college than 10+ years, and the parents will often still help with down payment when its time for the kids to move out and buy. It basically avoids the renting/roommate years as others have been saying.

Or, parents help you buy immediately after college, but maybe you get roommates to help pay the mortgage. Basically UMC Asian parents don't like kids to pay rent to another landlord. They'd prefer to be the landlord.

Smart plan. Real estate almost always increases, assuming you purchase a decent place (and most UMC asian parents fit that description).