Not a smart one |
So live at home, spend all your money partying, end up getting seriously injured in an accident, and Bam, you've got your downpayment. Of course everyone should try this |
They should be able to save $100K in 2 years. That's enough to enter the real estate market. |
Peoples expectations are not realistic anymore. In 1950, the average new construction SFH was only 958 feet and the average household size was around 3.5 people (274 sq ft per person). The average size of a new construction SFH in 2023 was 2,469 sq feet and the average household size was 2.6 people (950 sq feet per person). The average sq ft per household member today is 3.46 times larger than in 1950. So of course home are less affordable when people expect to have 3x more space per person compared to recent history. Even for the more affordable condo units people have come to expect 600-800sq ft for a one bedroom unit when it could easily have 2 bedrooms or more. Most people don’t want to buy small units with multiple bedrooms anymore so developers don’t build them frequently. |
Why, I think you've just answered your own question. |
You take issue with peoples' expectations and then go on to detail how the builders are largely responsible for creating the problem. Even smaller properties are out of reach for many young people now. We're not talking the brand new million dollar builds here. |
Because Americans think they are special and need to be 'independent'. Nevermind that this is what most of the world does and nevermind that most of the 'independent' kids whine about not having enough savings, but.. they are independent. |
I lived at home for a year during college. I waited tables at the time. My step brother would break into my room (I kept the door locked) and steal all my money. My parents couldn't believe that he was doing that (until he started stealing from them).
We were a “normal” family, but like many families there was a problem that required me to live in a different environment. Your scenario makes a ton of assumptions. |
I’m not blaming builders for anything. They ate responding to consumer demand and many of the same consumers that complain about “affordable housing” are often not willing to buy affordably sized housing units. So it is a somewhat self-imposed problem. There are some people that genuinely are doing everything right and cannot find a place to live. However, there are a lot of other people frankly that are just making bad decisions and not willing to live in housing they can afford, then blaming society for their self-imposed problems. I don’t buy the narrative that the sky is falling with the housing market. A significant component of this problem is that consumer expectations have increased much faster than household income. |
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You are so full of it with your housing “units” weasel words. Prior generations had options for smaller HOUSES and houses a little further away. But now affordable homes means houses with extreme commutes OR condos. The land has increased in value, for a variety of reasons such as increased population, Wall Street investing in SFHs, baby boom generation aging in place, etc. it’s not because people want big fancy homes, it’s because they want houses because, outside of NYC, condos are a TERRIBLE investment, often times WORSE than renting. They want a property that will be a good long term investment without having to spend 4 hours a day on a super commute. It’s not about first time buyers “expectations” except a desire to not be screwed financially or never see their families or friends by driving forever. |
My DS graduated from college two years ago and has been living at home. He is currently looking to move out with a roommate this summer. They plan on renting an apartment. Almost all of my DS' friends who grew up in the DMV and are working in the DMV are all living at home saving money, but several are now starting to move out. His friends who moved here for work have all told him they think it's great that he's been able to save money for a couple of years. My DS started at $85K and is currently making $95K. He has a degree in Data Analytics and works for a government contractor.
In two years, my DS has maxed out his 401K and it is close to $50K. He has also saved over $50K - putting in a high savings account and the stock market. He is responsible for his own auto insurance and cell phone. We charge him a nominal amount for rent - basically what I'm spending on buying food for him. As far as house rules, we just ask that he be a respectful "roommate." He is responsible for his own laundry. He lets me know what nights he'll be home for dinner so I make sure I have enough for him to eat. He gives us an approximate time of when he'll be home - not because he has a curfew but I don't want to be up worrying that he's been in an accident when he hasn't gotten home. DS has not had a girlfriend since he's been home so we haven't had to deal with overnight guests. He has had good friends come over to watch sports and we give them lots of space. I know he really wants to have a party but he feels weird having casual friends come to "mommy and daddy's house." It's been great having him home but he needs to move out. He has built a really good nest egg and is really ready to finally be on his own. |
I’m a teacher and I won’t make $100k until 20 yrs (if I last that long; it’s not looking good). |
And do you understand that many students still need to borrow money just to go to community college? I’m a teacher and my DS would’ve had to take out loans to go to CC if my dad hadn’t died and left me some money. You can save money if you don’t make enough to save. |
As long as total borrowing does not exceed 1 year’s starting salary, then sure go to college. Otherwise, do not go to college because you are making a Terrible financial decision. |