The divide gets bigger as you get older...

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's becoming apparent in my family. My brother lives in central PA and is a civil engineer. For various reasons, he never got all the certs required so he works a job that pays on the lower scale of civil engineering. His wife is a SAHM and has never been to college. Contrast that with a dual income professional family.

I don't think it bothers him but it bothers my SIL immensely that we can afford a nice house, vacations, etc.

He can buy a nice house in central PA if he really wants one.

-Pa native

Seriously. Central PA prices are amazing! And I love the woods, the hills, the skiing, it's great. Maybe he should get some certs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it simply becomes harder to HIDE that you haven’t saved or accumulated any money.

The first big shift is couples buying their first home. Then it’s upgrading to a nicer home. Later, it’s when you can retire.

I have a number of friends who continue to rent a fancy lifestyle. They may have high earnings but can’t save any or much. Still don’t own a home. We make less but bought a while ago and have since upgraded. It is becoming more and move obvious that certain couples haven’t saved any money especially if they can’t even buy a house or apartment.

I know the type of friends you're talking about - as I have that type in NYC - renting the 5-7k/mo apartment and thus not saving much or at all despite high salaries but when they consider buying, given the down payments they have saved despite high salaries they'd have to buy "regular" apartments - built in the 80s, shared laundry etc. even though they're doormen buildings in a good part of town and then it's ew I'm not buying THAT, have you seen the views from my luxury apartment and my all granite kitchen? I get it but then the cycle continues and equity doesn't get built at all.

Outside of NYC though IDK maybe it's just because I know fewer people here [moved here only five years ago], somehow I don't assume that people who haven't bought can't afford it. I mean maybe they can't but it doesn't seem like renting a fancy life is THAT expensive here. I always assume they aren't buying and just investing a ton maybe to buy someplace else.

Yes. I live here in DC and I rent. I have a high salary but just continue to save and invest until I get married. Currently dating someone now so if we end up marrying we should be fine.

Same. I don't think renting esp in this area where salaries are high is a sign that someone is poor/can't afford a down payment. I think of it as a sign that they are invested to the hilt - as some of my apartment dwelling friends are and/or aren't looking to stay here more than x years so they aren't focused on buying here. But yeah the divide gets bigger if someone is making money and not doing anything with it besides spending on luxury living - so you have to own a home or if not owning then invest a TON more than people who do own etc.

Yep! And my issue is I do not want to go down on any investments on tax advantaged accounts so I continue to grow my career and invest. I have so many friends that barely have much saved in retirement, lower incomes and are buying homes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it simply becomes harder to HIDE that you haven’t saved or accumulated any money.

The first big shift is couples buying their first home. Then it’s upgrading to a nicer home. Later, it’s when you can retire.

I have a number of friends who continue to rent a fancy lifestyle. They may have high earnings but can’t save any or much. Still don’t own a home. We make less but bought a while ago and have since upgraded. It is becoming more and move obvious that certain couples haven’t saved any money especially if they can’t even buy a house or apartment.

I know the type of friends you're talking about - as I have that type in NYC - renting the 5-7k/mo apartment and thus not saving much or at all despite high salaries but when they consider buying, given the down payments they have saved despite high salaries they'd have to buy "regular" apartments - built in the 80s, shared laundry etc. even though they're doormen buildings in a good part of town and then it's ew I'm not buying THAT, have you seen the views from my luxury apartment and my all granite kitchen? I get it but then the cycle continues and equity doesn't get built at all.

Outside of NYC though IDK maybe it's just because I know fewer people here [moved here only five years ago], somehow I don't assume that people who haven't bought can't afford it. I mean maybe they can't but it doesn't seem like renting a fancy life is THAT expensive here. I always assume they aren't buying and just investing a ton maybe to buy someplace else.

Yes. I live here in DC and I rent. I have a high salary but just continue to save and invest until I get married. Currently dating someone now so if we end up marrying we should be fine.

Same. I don't think renting esp in this area where salaries are high is a sign that someone is poor/can't afford a down payment. I think of it as a sign that they are invested to the hilt - as some of my apartment dwelling friends are and/or aren't looking to stay here more than x years so they aren't focused on buying here. But yeah the divide gets bigger if someone is making money and not doing anything with it besides spending on luxury living - so you have to own a home or if not owning then invest a TON more than people who do own etc.

Yep! And my issue is I do not want to go down on any investments on tax advantaged accounts so I continue to grow my career and invest. I have so many friends that barely have much saved in retirement, lower incomes and are buying homes.

Renting with significant networth is unusual. Yes, there are some people in HCOL locations who decide to continue renting while saving a lot. However statistically, renters have much much lower net worths than homeowners. This is especially true once you’ve formed a family.

Anecdotally, every friend I have still renting hasn’t bought because they simply can’t sacrifice their standard of living. They often rent an apartment or row house they couldn’t afford to buy. They also spend a lot on vacations, entertainment etc.

The population of people who are renting and socking away money is a very, very small group of people.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it simply becomes harder to HIDE that you haven’t saved or accumulated any money.

The first big shift is couples buying their first home. Then it’s upgrading to a nicer home. Later, it’s when you can retire.

I have a number of friends who continue to rent a fancy lifestyle. They may have high earnings but can’t save any or much. Still don’t own a home. We make less but bought a while ago and have since upgraded. It is becoming more and move obvious that certain couples haven’t saved any money especially if they can’t even buy a house or apartment.

I know the type of friends you're talking about - as I have that type in NYC - renting the 5-7k/mo apartment and thus not saving much or at all despite high salaries but when they consider buying, given the down payments they have saved despite high salaries they'd have to buy "regular" apartments - built in the 80s, shared laundry etc. even though they're doormen buildings in a good part of town and then it's ew I'm not buying THAT, have you seen the views from my luxury apartment and my all granite kitchen? I get it but then the cycle continues and equity doesn't get built at all.

Outside of NYC though IDK maybe it's just because I know fewer people here [moved here only five years ago], somehow I don't assume that people who haven't bought can't afford it. I mean maybe they can't but it doesn't seem like renting a fancy life is THAT expensive here. I always assume they aren't buying and just investing a ton maybe to buy someplace else.

Yes. I live here in DC and I rent. I have a high salary but just continue to save and invest until I get married. Currently dating someone now so if we end up marrying we should be fine.

Same. I don't think renting esp in this area where salaries are high is a sign that someone is poor/can't afford a down payment. I think of it as a sign that they are invested to the hilt - as some of my apartment dwelling friends are and/or aren't looking to stay here more than x years so they aren't focused on buying here. But yeah the divide gets bigger if someone is making money and not doing anything with it besides spending on luxury living - so you have to own a home or if not owning then invest a TON more than people who do own etc.

Yep! And my issue is I do not want to go down on any investments on tax advantaged accounts so I continue to grow my career and invest. I have so many friends that barely have much saved in retirement, lower incomes and are buying homes.

Renting with significant networth is unusual. Yes, there are some people in HCOL locations who decide to continue renting while saving a lot. However statistically, renters have much much lower net worths than homeowners. This is especially true once you’ve formed a family.

Anecdotally, every friend I have still renting hasn’t bought because they simply can’t sacrifice their standard of living. They often rent an apartment or row house they couldn’t afford to buy. They also spend a lot on vacations, entertainment etc.

The population of people who are renting and socking away money is a very, very small group of people.

It just depends on what kind of apartment complex you live in. Usually, if you are in a semi-wealthy or wealthy area, the people living in the top few luxury apartment buildings are probably better off than 90% of the homeowners. For example, I lived in an apartment building in Austin and my neighbors were driving aston martins, lambos, porsche 911 turbos (multiple). I lived in an apartment in McLean and just ONE of my neighbors had a porsche Cayenne and two ferraris. My literal next door neighbor drove a bentley. They usually take extravagant vacations too. I make a good chunk of change and I would give anything to be back to apartment living. I hate having to schedule maintenance on my house, have someone take care of the yard, etc. I also much prefer my cars to be in an underground garage with elevator access. The unfortunate fact is that they just don't make apartments big enough for families in the U.S. (unlike in Asia and Europe). I have three kids and need a guest room. The largest apartments in Nova are three bedrooms and there are almost none, and none are in the most desirable buildings

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's becoming apparent in my family. My brother lives in central PA and is a civil engineer. For various reasons, he never got all the certs required so he works a job that pays on the lower scale of civil engineering. His wife is a SAHM and has never been to college. Contrast that with a dual income professional family.

I don't think it bothers him but it bothers my SIL immensely that we can afford a nice house, vacations, etc.

He can buy a nice house in central PA if he really wants one.

-Pa native

Seriously. Central PA prices are amazing! And I love the woods, the hills, the skiing, it's great. Maybe he should get some certs.

He's tried to get them and has failed the tests. They do own a house but it's not as nice as others who make more money. The point was that decisions made early by him and his wife (not passing the certs, not going to college, moving to an area with low COL) and decisions made by my husband and I (professional degrees, moving to a HCOL) are proving to be divisive as we get older.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it simply becomes harder to HIDE that you haven’t saved or accumulated any money.

The first big shift is couples buying their first home. Then it’s upgrading to a nicer home. Later, it’s when you can retire.

I have a number of friends who continue to rent a fancy lifestyle. They may have high earnings but can’t save any or much. Still don’t own a home. We make less but bought a while ago and have since upgraded. It is becoming more and move obvious that certain couples haven’t saved any money especially if they can’t even buy a house or apartment.

I know the type of friends you're talking about - as I have that type in NYC - renting the 5-7k/mo apartment and thus not saving much or at all despite high salaries but when they consider buying, given the down payments they have saved despite high salaries they'd have to buy "regular" apartments - built in the 80s, shared laundry etc. even though they're doormen buildings in a good part of town and then it's ew I'm not buying THAT, have you seen the views from my luxury apartment and my all granite kitchen? I get it but then the cycle continues and equity doesn't get built at all.

Outside of NYC though IDK maybe it's just because I know fewer people here [moved here only five years ago], somehow I don't assume that people who haven't bought can't afford it. I mean maybe they can't but it doesn't seem like renting a fancy life is THAT expensive here. I always assume they aren't buying and just investing a ton maybe to buy someplace else.

Yes. I live here in DC and I rent. I have a high salary but just continue to save and invest until I get married. Currently dating someone now so if we end up marrying we should be fine.

Same. I don't think renting esp in this area where salaries are high is a sign that someone is poor/can't afford a down payment. I think of it as a sign that they are invested to the hilt - as some of my apartment dwelling friends are and/or aren't looking to stay here more than x years so they aren't focused on buying here. But yeah the divide gets bigger if someone is making money and not doing anything with it besides spending on luxury living - so you have to own a home or if not owning then invest a TON more than people who do own etc.

Yep! And my issue is I do not want to go down on any investments on tax advantaged accounts so I continue to grow my career and invest. I have so many friends that barely have much saved in retirement, lower incomes and are buying homes.

Renting with significant networth is unusual. Yes, there are some people in HCOL locations who decide to continue renting while saving a lot. However statistically, renters have much much lower net worths than homeowners. This is especially true once you’ve formed a family.

Anecdotally, every friend I have still renting hasn’t bought because they simply can’t sacrifice their standard of living. They often rent an apartment or row house they couldn’t afford to buy. They also spend a lot on vacations, entertainment etc.

The population of people who are renting and socking away money is a very, very small group of people.

True. Yes there ARE high income earners who are investing it all and thus not buying homes and I'd venture to guess there's a decent percent in this area where salaries are high, people are well educated, and thus have made a calculated decision not to buy -as we see from the people chiming in on this topic saying this is exactly what they're doing. But overall I agree these are not huge %s. It is very common in metro areas to keep renting because you can rent a more luxury lifestyle than you can buy but then with so much going out the door in rent + amenities + fancy vacations etc., people save less than they could and get further and further behind on coming up with a down payment. To say nothing of the larger % of renters who are there not because they are living luxuriously at all but because they just don't have enough left over after necessary bills to save much for down payments.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it simply becomes harder to HIDE that you haven’t saved or accumulated any money.

The first big shift is couples buying their first home. Then it’s upgrading to a nicer home. Later, it’s when you can retire.

I have a number of friends who continue to rent a fancy lifestyle. They may have high earnings but can’t save any or much. Still don’t own a home. We make less but bought a while ago and have since upgraded. It is becoming more and move obvious that certain couples haven’t saved any money especially if they can’t even buy a house or apartment.

I know the type of friends you're talking about - as I have that type in NYC - renting the 5-7k/mo apartment and thus not saving much or at all despite high salaries but when they consider buying, given the down payments they have saved despite high salaries they'd have to buy "regular" apartments - built in the 80s, shared laundry etc. even though they're doormen buildings in a good part of town and then it's ew I'm not buying THAT, have you seen the views from my luxury apartment and my all granite kitchen? I get it but then the cycle continues and equity doesn't get built at all.

Outside of NYC though IDK maybe it's just because I know fewer people here [moved here only five years ago], somehow I don't assume that people who haven't bought can't afford it. I mean maybe they can't but it doesn't seem like renting a fancy life is THAT expensive here. I always assume they aren't buying and just investing a ton maybe to buy someplace else.

Yes. I live here in DC and I rent. I have a high salary but just continue to save and invest until I get married. Currently dating someone now so if we end up marrying we should be fine.

Same. I don't think renting esp in this area where salaries are high is a sign that someone is poor/can't afford a down payment. I think of it as a sign that they are invested to the hilt - as some of my apartment dwelling friends are and/or aren't looking to stay here more than x years so they aren't focused on buying here. But yeah the divide gets bigger if someone is making money and not doing anything with it besides spending on luxury living - so you have to own a home or if not owning then invest a TON more than people who do own etc.

Yep! And my issue is I do not want to go down on any investments on tax advantaged accounts so I continue to grow my career and invest. I have so many friends that barely have much saved in retirement, lower incomes and are buying homes.

Renting with significant networth is unusual. Yes, there are some people in HCOL locations who decide to continue renting while saving a lot. However statistically, renters have much much lower net worths than homeowners. This is especially true once you’ve formed a family.

Anecdotally, every friend I have still renting hasn’t bought because they simply can’t sacrifice their standard of living. They often rent an apartment or row house they couldn’t afford to buy. They also spend a lot on vacations, entertainment etc.

The population of people who are renting and socking away money is a very, very small group of people.

I think this is true. But it is also very unusual for two people to marry and buy their first house at a high price point. Most of my friends that are more lower income think it's weird I rent, but will also think it's crazy that I would be someone to go from a 1 bedroom to a house that could be $850k. You would usually see that in a HCOL area and not the average area.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it simply becomes harder to HIDE that you haven’t saved or accumulated any money.

The first big shift is couples buying their first home. Then it’s upgrading to a nicer home. Later, it’s when you can retire.

I have a number of friends who continue to rent a fancy lifestyle. They may have high earnings but can’t save any or much. Still don’t own a home. We make less but bought a while ago and have since upgraded. It is becoming more and move obvious that certain couples haven’t saved any money especially if they can’t even buy a house or apartment.

I know the type of friends you're talking about - as I have that type in NYC - renting the 5-7k/mo apartment and thus not saving much or at all despite high salaries but when they consider buying, given the down payments they have saved despite high salaries they'd have to buy "regular" apartments - built in the 80s, shared laundry etc. even though they're doormen buildings in a good part of town and then it's ew I'm not buying THAT, have you seen the views from my luxury apartment and my all granite kitchen? I get it but then the cycle continues and equity doesn't get built at all.

Outside of NYC though IDK maybe it's just because I know fewer people here [moved here only five years ago], somehow I don't assume that people who haven't bought can't afford it. I mean maybe they can't but it doesn't seem like renting a fancy life is THAT expensive here. I always assume they aren't buying and just investing a ton maybe to buy someplace else.

Yes. I live here in DC and I rent. I have a high salary but just continue to save and invest until I get married. Currently dating someone now so if we end up marrying we should be fine.

Same. I don't think renting esp in this area where salaries are high is a sign that someone is poor/can't afford a down payment. I think of it as a sign that they are invested to the hilt - as some of my apartment dwelling friends are and/or aren't looking to stay here more than x years so they aren't focused on buying here. But yeah the divide gets bigger if someone is making money and not doing anything with it besides spending on luxury living - so you have to own a home or if not owning then invest a TON more than people who do own etc.

Yep! And my issue is I do not want to go down on any investments on tax advantaged accounts so I continue to grow my career and invest. I have so many friends that barely have much saved in retirement, lower incomes and are buying homes.

Renting with significant networth is unusual. Yes, there are some people in HCOL locations who decide to continue renting while saving a lot. However statistically, renters have much much lower net worths than homeowners. This is especially true once you’ve formed a family.

Anecdotally, every friend I have still renting hasn’t bought because they simply can’t sacrifice their standard of living. They often rent an apartment or row house they couldn’t afford to buy. They also spend a lot on vacations, entertainment etc.

The population of people who are renting and socking away money is a very, very small group of people.

It just depends on what kind of apartment complex you live in. Usually, if you are in a semi-wealthy or wealthy area, the people living in the top few luxury apartment buildings are probably better off than 90% of the homeowners. For example, I lived in an apartment building in Austin and my neighbors were driving aston martins, lambos, porsche 911 turbos (multiple). I lived in an apartment in McLean and just ONE of my neighbors had a porsche Cayenne and two ferraris. My literal next door neighbor drove a bentley. They usually take extravagant vacations too. I make a good chunk of change and I would give anything to be back to apartment living. I hate having to schedule maintenance on my house, have someone take care of the yard, etc. I also much prefer my cars to be in an underground garage with elevator access. The unfortunate fact is that they just don't make apartments big enough for families in the U.S. (unlike in Asia and Europe). I have three kids and need a guest room. The largest apartments in Nova are three bedrooms and there are almost none, and none are in the most desirable buildings

People who reside in McLean don’t live here to live in an apartment. We live in McLean in a single family home and there are plenty of Ferraris and the likes. We have a four car garage. Our neighbors have 4-6 car garages. My child’s friend’s dad has like 5 Ferraris. Many people also own multiple homes.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it simply becomes harder to HIDE that you haven’t saved or accumulated any money.

The first big shift is couples buying their first home. Then it’s upgrading to a nicer home. Later, it’s when you can retire.

I have a number of friends who continue to rent a fancy lifestyle. They may have high earnings but can’t save any or much. Still don’t own a home. We make less but bought a while ago and have since upgraded. It is becoming more and move obvious that certain couples haven’t saved any money especially if they can’t even buy a house or apartment.

I know the type of friends you're talking about - as I have that type in NYC - renting the 5-7k/mo apartment and thus not saving much or at all despite high salaries but when they consider buying, given the down payments they have saved despite high salaries they'd have to buy "regular" apartments - built in the 80s, shared laundry etc. even though they're doormen buildings in a good part of town and then it's ew I'm not buying THAT, have you seen the views from my luxury apartment and my all granite kitchen? I get it but then the cycle continues and equity doesn't get built at all.

Outside of NYC though IDK maybe it's just because I know fewer people here [moved here only five years ago], somehow I don't assume that people who haven't bought can't afford it. I mean maybe they can't but it doesn't seem like renting a fancy life is THAT expensive here. I always assume they aren't buying and just investing a ton maybe to buy someplace else.

Yes. I live here in DC and I rent. I have a high salary but just continue to save and invest until I get married. Currently dating someone now so if we end up marrying we should be fine.

Same. I don't think renting esp in this area where salaries are high is a sign that someone is poor/can't afford a down payment. I think of it as a sign that they are invested to the hilt - as some of my apartment dwelling friends are and/or aren't looking to stay here more than x years so they aren't focused on buying here. But yeah the divide gets bigger if someone is making money and not doing anything with it besides spending on luxury living - so you have to own a home or if not owning then invest a TON more than people who do own etc.

Yep! And my issue is I do not want to go down on any investments on tax advantaged accounts so I continue to grow my career and invest. I have so many friends that barely have much saved in retirement, lower incomes and are buying homes.

Renting with significant networth is unusual. Yes, there are some people in HCOL locations who decide to continue renting while saving a lot. However statistically, renters have much much lower net worths than homeowners. This is especially true once you’ve formed a family.

Anecdotally, every friend I have still renting hasn’t bought because they simply can’t sacrifice their standard of living. They often rent an apartment or row house they couldn’t afford to buy. They also spend a lot on vacations, entertainment etc.

The population of people who are renting and socking away money is a very, very small group of people.

It just depends on what kind of apartment complex you live in. Usually, if you are in a semi-wealthy or wealthy area, the people living in the top few luxury apartment buildings are probably better off than 90% of the homeowners. For example, I lived in an apartment building in Austin and my neighbors were driving aston martins, lambos, porsche 911 turbos (multiple). I lived in an apartment in McLean and just ONE of my neighbors had a porsche Cayenne and two ferraris. My literal next door neighbor drove a bentley. They usually take extravagant vacations too. I make a good chunk of change and I would give anything to be back to apartment living. I hate having to schedule maintenance on my house, have someone take care of the yard, etc. I also much prefer my cars to be in an underground garage with elevator access. The unfortunate fact is that they just don't make apartments big enough for families in the U.S. (unlike in Asia and Europe). I have three kids and need a guest room. The largest apartments in Nova are three bedrooms and there are almost none, and none are in the most desirable buildings

People who reside in McLean don’t live here to live in an apartment. We live in McLean in a single family home and there are plenty of Ferraris and the likes. We have a four car garage. Our neighbors have 4-6 car garages. My child’s friend’s dad has like 5 Ferraris. Many people also own multiple homes.

Yes…and I like am totally impressed with. I wish I could be like you. You sound like a 19yo.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it simply becomes harder to HIDE that you haven’t saved or accumulated any money.

The first big shift is couples buying their first home. Then it’s upgrading to a nicer home. Later, it’s when you can retire.

I have a number of friends who continue to rent a fancy lifestyle. They may have high earnings but can’t save any or much. Still don’t own a home. We make less but bought a while ago and have since upgraded. It is becoming more and move obvious that certain couples haven’t saved any money especially if they can’t even buy a house or apartment.

I know the type of friends you're talking about - as I have that type in NYC - renting the 5-7k/mo apartment and thus not saving much or at all despite high salaries but when they consider buying, given the down payments they have saved despite high salaries they'd have to buy "regular" apartments - built in the 80s, shared laundry etc. even though they're doormen buildings in a good part of town and then it's ew I'm not buying THAT, have you seen the views from my luxury apartment and my all granite kitchen? I get it but then the cycle continues and equity doesn't get built at all.

Outside of NYC though IDK maybe it's just because I know fewer people here [moved here only five years ago], somehow I don't assume that people who haven't bought can't afford it. I mean maybe they can't but it doesn't seem like renting a fancy life is THAT expensive here. I always assume they aren't buying and just investing a ton maybe to buy someplace else.

Yes. I live here in DC and I rent. I have a high salary but just continue to save and invest until I get married. Currently dating someone now so if we end up marrying we should be fine.

Same. I don't think renting esp in this area where salaries are high is a sign that someone is poor/can't afford a down payment. I think of it as a sign that they are invested to the hilt - as some of my apartment dwelling friends are and/or aren't looking to stay here more than x years so they aren't focused on buying here. But yeah the divide gets bigger if someone is making money and not doing anything with it besides spending on luxury living - so you have to own a home or if not owning then invest a TON more than people who do own etc.

Yep! And my issue is I do not want to go down on any investments on tax advantaged accounts so I continue to grow my career and invest. I have so many friends that barely have much saved in retirement, lower incomes and are buying homes.

Renting with significant networth is unusual. Yes, there are some people in HCOL locations who decide to continue renting while saving a lot. However statistically, renters have much much lower net worths than homeowners. This is especially true once you’ve formed a family.

Anecdotally, every friend I have still renting hasn’t bought because they simply can’t sacrifice their standard of living. They often rent an apartment or row house they couldn’t afford to buy. They also spend a lot on vacations, entertainment etc.

The population of people who are renting and socking away money is a very, very small group of people.

It just depends on what kind of apartment complex you live in. Usually, if you are in a semi-wealthy or wealthy area, the people living in the top few luxury apartment buildings are probably better off than 90% of the homeowners. For example, I lived in an apartment building in Austin and my neighbors were driving aston martins, lambos, porsche 911 turbos (multiple). I lived in an apartment in McLean and just ONE of my neighbors had a porsche Cayenne and two ferraris. My literal next door neighbor drove a bentley. They usually take extravagant vacations too. I make a good chunk of change and I would give anything to be back to apartment living. I hate having to schedule maintenance on my house, have someone take care of the yard, etc. I also much prefer my cars to be in an underground garage with elevator access. The unfortunate fact is that they just don't make apartments big enough for families in the U.S. (unlike in Asia and Europe). I have three kids and need a guest room. The largest apartments in Nova are three bedrooms and there are almost none, and none are in the most desirable buildings

People who reside in McLean don’t live here to live in an apartment. We live in McLean in a single family home and there are plenty of Ferraris and the likes. We have a four car garage. Our neighbors have 4-6 car garages. My child’s friend’s dad has like 5 Ferraris. Many people also own multiple homes.

+1 and the award for DCUM Comment of the Day.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Your health is your wealth, especially later in life. All the money in the world will not be enough if you are sick mentally or physically. Soooo many people I know have dropped dead early or gotten ill (cancer, strokes) or are mentally sick. Live your life for happiness not for making a mountain of money.

Yes!!! And money cannot buy health.

Also, I work with many folks who work a 70 hour week. Their health is crap and they age young - cancer, obesity, etc. One guy is in this early 40s and losing patches of hair due to stress. NO THANKS!! I'll take my mid-level go no where that pays 300k (for about 30 hrs of WFH) rather than his 800k salary (he has to be in the office)!

This feels a little like a humble brag TBH. What the hell is a 30 hr/wk mid level job that pays $300?

NP..same here..CPA tax consultant as an independent contractor = 300k+

[Anonymous]

Anonymous wrote:

Anonymous wrote:I reject Ivy leaguers from jobs all day. My favorite hires are usually state school honors program kids. Bright, realistic, and hungry!

+1
I'd take a bright humble person all day long. Many ivy kids have huge egos, a chip on their shoulder, and a sense of entitlement that really grates on my humble Midwestern roots. But being Midwestern, I smile, thank them for the interview, and fill the position with someone else.

I didn’t go to an ivy. But I am from the East Coast. And I really think midwesterners can be weird and prejudiced and discriminatory against people from the East Coast.

[Anonymous]

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Anonymous wrote:I think it simply becomes harder to HIDE that you haven’t saved or accumulated any money.

The first big shift is couples buying their first home. Then it’s upgrading to a nicer home. Later, it’s when you can retire.

I have a number of friends who continue to rent a fancy lifestyle. They may have high earnings but can’t save any or much. Still don’t own a home. We make less but bought a while ago and have since upgraded. It is becoming more and move obvious that certain couples haven’t saved any money especially if they can’t even buy a house or apartment.

I know the type of friends you're talking about - as I have that type in NYC - renting the 5-7k/mo apartment and thus not saving much or at all despite high salaries but when they consider buying, given the down payments they have saved despite high salaries they'd have to buy "regular" apartments - built in the 80s, shared laundry etc. even though they're doormen buildings in a good part of town and then it's ew I'm not buying THAT, have you seen the views from my luxury apartment and my all granite kitchen? I get it but then the cycle continues and equity doesn't get built at all.

Outside of NYC though IDK maybe it's just because I know fewer people here [moved here only five years ago], somehow I don't assume that people who haven't bought can't afford it. I mean maybe they can't but it doesn't seem like renting a fancy life is THAT expensive here. I always assume they aren't buying and just investing a ton maybe to buy someplace else.

Yes. I live here in DC and I rent. I have a high salary but just continue to save and invest until I get married. Currently dating someone now so if we end up marrying we should be fine.

Same. I don't think renting esp in this area where salaries are high is a sign that someone is poor/can't afford a down payment. I think of it as a sign that they are invested to the hilt - as some of my apartment dwelling friends are and/or aren't looking to stay here more than x years so they aren't focused on buying here. But yeah the divide gets bigger if someone is making money and not doing anything with it besides spending on luxury living - so you have to own a home or if not owning then invest a TON more than people who do own etc.

Someone who is still renting because they are investing ALL of their money is an outlier. I have one friend doing this.

The majority of people who are high income and haven’t bought simply don’t have the down payment. They are spending most of what they are making.

DP. We rented for a long time because we weren't sure if we were going to commit to that city and we both had $250k of student loans to pay off. We could have used my FAANG equity to cover a down payment but we kept it in the market and it has appreciated way faster than a house/condo would have. In the meantime we didn't have to pay for maintenance, repairs, renovations. In the early part of the pandemic my husband got a new job, we moved across country and bought our first home. We didn't have to worry about selling first and our house is large enough that we will never grow out of it. My husband's income doubled to $800k and we were able to make the down payment without selling any of my equity which has continued to grow. For us it made sense not to use my equity to buy a house. We could have afforded to buy much earlier if we had but instead relied on the cash portion of our salaries and bonuses.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it simply becomes harder to HIDE that you haven’t saved or accumulated any money.

The first big shift is couples buying their first home. Then it’s upgrading to a nicer home. Later, it’s when you can retire.

I have a number of friends who continue to rent a fancy lifestyle. They may have high earnings but can’t save any or much. Still don’t own a home. We make less but bought a while ago and have since upgraded. It is becoming more and move obvious that certain couples haven’t saved any money especially if they can’t even buy a house or apartment.

I know the type of friends you're talking about - as I have that type in NYC - renting the 5-7k/mo apartment and thus not saving much or at all despite high salaries but when they consider buying, given the down payments they have saved despite high salaries they'd have to buy "regular" apartments - built in the 80s, shared laundry etc. even though they're doormen buildings in a good part of town and then it's ew I'm not buying THAT, have you seen the views from my luxury apartment and my all granite kitchen? I get it but then the cycle continues and equity doesn't get built at all.

Outside of NYC though IDK maybe it's just because I know fewer people here [moved here only five years ago], somehow I don't assume that people who haven't bought can't afford it. I mean maybe they can't but it doesn't seem like renting a fancy life is THAT expensive here. I always assume they aren't buying and just investing a ton maybe to buy someplace else.

Yes. I live here in DC and I rent. I have a high salary but just continue to save and invest until I get married. Currently dating someone now so if we end up marrying we should be fine.

Same. I don't think renting esp in this area where salaries are high is a sign that someone is poor/can't afford a down payment. I think of it as a sign that they are invested to the hilt - as some of my apartment dwelling friends are and/or aren't looking to stay here more than x years so they aren't focused on buying here. But yeah the divide gets bigger if someone is making money and not doing anything with it besides spending on luxury living - so you have to own a home or if not owning then invest a TON more than people who do own etc.

Yep! And my issue is I do not want to go down on any investments on tax advantaged accounts so I continue to grow my career and invest. I have so many friends that barely have much saved in retirement, lower incomes and are buying homes.

Renting with significant networth is unusual. Yes, there are some people in HCOL locations who decide to continue renting while saving a lot. However statistically, renters have much much lower net worths than homeowners. This is especially true once you’ve formed a family.

Anecdotally, every friend I have still renting hasn’t bought because they simply can’t sacrifice their standard of living. They often rent an apartment or row house they couldn’t afford to buy. They also spend a lot on vacations, entertainment etc.

The population of people who are renting and socking away money is a very, very small group of people.

True. Yes there ARE high income earners who are investing it all and thus not buying homes and I'd venture to guess there's a decent percent in this area where salaries are high, people are well educated, and thus have made a calculated decision not to buy -as we see from the people chiming in on this topic saying this is exactly what they're doing. But overall I agree these are not huge %s. It is very common in metro areas to keep renting because you can rent a more luxury lifestyle than you can buy but then with so much going out the door in rent + amenities + fancy vacations etc., people save less than they could and get further and further behind on coming up with a down payment. To say nothing of the larger % of renters who are there not because they are living luxuriously at all but because they just don't have enough left over after necessary bills to save much for down payments.

Part of lifestyle is reasonable commutes, too. We rented a VERY modest apartment for several years (no AC, dishwasher, or in unit laundry) just to be within a reasonable public transit commute to my job in DC. We put off buying in part because I would have been looking at a much longer commute anywhere we could even afford a townhouse, and partly because my spouse wasn't in a long term job and we didn't want to wind up in Bowie with a commute to Gaithersburg or something. By the time we felt stable enough to buy, prices were so high we wound up at the far end of a commuter rail line in a small 19 th century house with a ton of deferred maintenance. We never valued space or nice amenities, but not wasting 3-4 hours a day commuting is hard to do if you're not high income, too.

I definitely wish I'd worked harder to get into tech or consulting when I made a career shift out of academia a few years ago.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I think it simply becomes harder to HIDE that you haven’t saved or accumulated any money.

The first big shift is couples buying their first home. Then it’s upgrading to a nicer home. Later, it’s when you can retire.

I have a number of friends who continue to rent a fancy lifestyle. They may have high earnings but can’t save any or much. Still don’t own a home. We make less but bought a while ago and have since upgraded. It is becoming more and move obvious that certain couples haven’t saved any money especially if they can’t even buy a house or apartment.

I know the type of friends you're talking about - as I have that type in NYC - renting the 5-7k/mo apartment and thus not saving much or at all despite high salaries but when they consider buying, given the down payments they have saved despite high salaries they'd have to buy "regular" apartments - built in the 80s, shared laundry etc. even though they're doormen buildings in a good part of town and then it's ew I'm not buying THAT, have you seen the views from my luxury apartment and my all granite kitchen? I get it but then the cycle continues and equity doesn't get built at all.

Outside of NYC though IDK maybe it's just because I know fewer people here [moved here only five years ago], somehow I don't assume that people who haven't bought can't afford it. I mean maybe they can't but it doesn't seem like renting a fancy life is THAT expensive here. I always assume they aren't buying and just investing a ton maybe to buy someplace else.

Yes. I live here in DC and I rent. I have a high salary but just continue to save and invest until I get married. Currently dating someone now so if we end up marrying we should be fine.

Same. I don't think renting esp in this area where salaries are high is a sign that someone is poor/can't afford a down payment. I think of it as a sign that they are invested to the hilt - as some of my apartment dwelling friends are and/or aren't looking to stay here more than x years so they aren't focused on buying here. But yeah the divide gets bigger if someone is making money and not doing anything with it besides spending on luxury living - so you have to own a home or if not owning then invest a TON more than people who do own etc.

Yep! And my issue is I do not want to go down on any investments on tax advantaged accounts so I continue to grow my career and invest. I have so many friends that barely have much saved in retirement, lower incomes and are buying homes.

Renting with significant networth is unusual. Yes, there are some people in HCOL locations who decide to continue renting while saving a lot. However statistically, renters have much much lower net worths than homeowners. This is especially true once you’ve formed a family.

Anecdotally, every friend I have still renting hasn’t bought because they simply can’t sacrifice their standard of living. They often rent an apartment or row house they couldn’t afford to buy. They also spend a lot on vacations, entertainment etc.

The population of people who are renting and socking away money is a very, very small group of people.

It just depends on what kind of apartment complex you live in. Usually, if you are in a semi-wealthy or wealthy area, the people living in the top few luxury apartment buildings are probably better off than 90% of the homeowners. For example, I lived in an apartment building in Austin and my neighbors were driving aston martins, lambos, porsche 911 turbos (multiple). I lived in an apartment in McLean and just ONE of my neighbors had a porsche Cayenne and two ferraris. My literal next door neighbor drove a bentley. They usually take extravagant vacations too. I make a good chunk of change and I would give anything to be back to apartment living. I hate having to schedule maintenance on my house, have someone take care of the yard, etc. I also much prefer my cars to be in an underground garage with elevator access. The unfortunate fact is that they just don't make apartments big enough for families in the U.S. (unlike in Asia and Europe). I have three kids and need a guest room. The largest apartments in Nova are three bedrooms and there are almost none, and none are in the most desirable buildings

People who reside in McLean don’t live here to live in an apartment. We live in McLean in a single family home and there are plenty of Ferraris and the likes. We have a four car garage. Our neighbors have 4-6 car garages. My child’s friend’s dad has like 5 Ferraris. Many people also own multiple homes.

Yes…and I like am totally impressed with. I wish I could be like you. You sound like a 19yo.

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