“The American Dream Is Dead”: People Online Discuss Insane Housing Prices After This Person Vents Their Frustrations
Interview With Author
If something is extremely expensive, there’s a saying that it costs an arm and a leg. If you consider today’s US housing market, however, then younger generations would have to cough up more limbs than they themselves have. Very fitting seeing as how a lot of younger gen people can only dream of having their own house at this point.
The topic of housing in the US has been a hot one over the past several years as the housing market has reached and, in fact, gone beyond the point of being sensible with its pricing. And if you’re not convinced it’s a sad reality, consider this Reddit post.
More Info: Reddit
They say there are only a few constants in life: change, death, taxes, and, of course, the ever-inflating prices in the US housing market
Image credits: Frans van Heerden (not the actual photo)
A Redditor shared his frustrations with the current status of housing in the US, sparking a number of discussions on the platform
Image credits: Benjamin5431
In the post, the Redditor explained how more than half of his paychecks is spent on rent, whereas his older coworkers only pay half that in mortgages
Redditor u/Benjamin5431 was having a conversation with an older coworker when he asked why OP works two jobs. OP’s response was that his rent is $1,800. The coworker experienced light shock after being told that no, Benjamin does not live in a mansion, but actually in an 800 square foot (around 74 square meters) apartment.
In (stark) contrast, the coworker explains that his mortgage is half that for a 4-bedroom house he got a few decades ago for $100,000. A quick Zillow search deduced that the house is now worth 4 times as much.
Now, OP has been doing the same job his coworker used to do, the same exact positions. But the coworkers all managed to buy their houses in their 20s, while the younger generations will practically never be able to even afford starter homes if things keep getting worse.
Not only that, but a quick Zillow search deduced that the coworker’s $100K 4-bedroom house is now worth $400K
Image credits: Max Rahubovskiy (not the actual photo)
Bored Panda got in touch with Benjamin, who explained that he wrote the post to show the extreme contrast between the costs of living for younger and older generations.
“Even if you bought a house only 5–6 years ago, you’d be in a completely different universe than those trying to buy a house (or rent) under 2023’s market rate. I say this because I did purchase a house 6 years ago. It was expensive and cut-throat enough even back then, but it’s far worse now,” elaborates OP.
“I have siblings, parents, other relatives and co-workers who have bought houses many years ago, some of them decades ago, and their mortgages on huge, nice houses are very affordable, AND they have higher incomes as well. It just shows how much more difficult it is for today’s generation to own real estate and build wealth, and really just to survive without being homeless.”
To put all of this in context, OP shared with us that, across the two jobs, he makes around $3,500 per month before taxes. Rent is a bit over half of that gross sum. Besides this, there’s also food, gas and other commodities to deal with, the prices of all of which are skyrocketing. To top it all off, OP also has a newborn kid, which not only means the cost of parenting, but also owing the hospital thousands of dollars on top of paying $600 health insurance fees every month. OP added that most folk in the area (and age range) make around the same amount of money, i.e. $40,000 to $60,000 per year ($3,300 to $5,000 a month).
All of this points to an ever-increasing issue of affordability, with statistics showing little change in wages, but a doubling (if not more) of house prices in the last 30 years
Image credits: Tima Miroshnichenko (not the actual photo)
So, what has driven up those prices? The overarching problem is too much demand, not enough supply. But the issue gets worse because [1] millennials, having been delayed for years in becoming homeowners, are just now entering the market, thus having to compete more with later gens; [2] homeowners from previous generations opt to spend their late years at home as opposed to retirement venues, and [3] the number of properties owned by investors has doubled to 20% since 2010. And if resources are scarce, the price goes up. Fast.
To put it into more context, it is reported that in the 1990s, the price of a single-family home was roughly 3 times more than the median household income nationwide. In fact, in many metropolitan areas, the home-to-income ratio was below 2.6, which is considered a threshold of affordability. 2022, unfortunately, is a record-high year, clocking in at 5.3 times more than the median household income—double what is considered affordable.
Besides the elephant in the room, all of this is also giving rise to another problem, which is that older generations—mostly homeowners—are getting seriously out of touch with reality when it comes to housing. And this in turn leads to all the “millennials could afford houses if they just stopped buying Starbucks” comments. Not dealing in absolutes here, but there is a reason behind the whole “ok boomer” thing.
“A lot of older generations are out of touch because many of them simply aren’t looking for houses to buy or places to rent right now, so they don’t know,” added OP. “They also rely on THEIR experience with buying property and renting, and since times are so much different, their knowledge isn’t applicable.”
“Times have changed. Prices have soared, incomes have not, benefits have gotten worse. I was talking to my father yesterday: in 1989 he was making $40-$50k as a body shop employee at a small, locally run bodyshop in Georgia. This same exact body shop is still in business, and the employees there still only make $40k-$50k. However, houses in the area went from being $50k-$150k back then to being $350k-$600k+ now.”
The main culprit here is too much demand, not enough supply, with a little nuance here and there
Image credits: Sora Shimazaki (not the actual photo)
So, what can be done? A lot, actually. And all of it. Actually. Many in the comments did point to large corporations and other investors buying up properties and developing them to be rented or sold. At least, this is the fast and most effective way of mitigating the crisis. But there’s more to it.
“The solution has to be multifaceted because the issues causing housing unaffordability are multifaceted,” elaborated OP. “1st, the state or the federal government needs to incentivize investors to build more houses. There are many places being built in my area, but literally every single one of them is ‘luxury apartments/townhomes’. Slapping luxury on the name (when they really aren’t luxury at all) allows them to charge sky-high rent and justify it. Even though there is a lot of building here, it’s all unaffordable options, so this doesn’t help affordability. It would be like if people who lived in a ‘food desert’ couldn’t afford food but a bunch of upscale grocery stores opened up that only sell filet mignons and wild-caught salmon. That wouldn’t really help people.”
“The other issue is investors have found out it’s cheaper and more profitable to just buy up homes, then sell them at a later date when values rise and make money. This doesn’t add inventory to the market, it takes it away, then since the object of the game is to sell more than what you paid, it just causes the price to always go up. So, something on the state or federal level needs to be done to stop housing speculation. It adds nothing to the economy, it only makes things more expensive.”
“And lastly, price controls. Usually supply and demand determines a fair price, if it’s too high people won’t buy it. Housing breaks this rule. The demand is always high. People will pay as high a price as possible because the alternative is being homeless. There needs to be a limit on how much a company can raise rent in a period of time.”
Many suggest that if big investors didn’t invade the market and the government had more control over how it’s done, housing would be much more affordable
Image credits: Ben Yokitis (not the actual photo)
Benjamin explained that rent on his last apartment went from $1,450 to $1,850 within the two years. This meant a change in careers to be able to afford the increase, which translated into gaining no extra money, as it all went into rent. And it would be a blessing if it was just rent.
“This system is predatory, it siphons money away from workers into the hands of already rich property owners and investors,” added OP. “More needs to be done to give workers and renters more bargaining power and more control over the housing market. Right now apartments and houses for rent are doing whatever they want; charging ridiculous fees, non-refundable application fees and admin fees, raising rent by hundreds, tacking on a bunch of random fees to your rent which should be included in the price in the first place, requiring extremely strict income and credit requirements, huge deposits, etc. And we have no power against them to retaliate.”
OP’s post sparked quite a discussion on the topic. So much, in fact, that the post has around 4,300 comments. This is besides the 61,500 upvotes and a handful of Reddit awards.
Besides witty comments about the American Dream (or the myth thereof), folks shared their own predicaments and stories in the comments, further painting a real picture of just how ridiculous housing prices have become over the years. You can check it all out in context here.
But before you go, we’d love to hear your thoughts on everything from inter-generational struggles to the housing market in the comment section below!
Commenters had a lot to say on the now-viral Reddit post with over 61K upvotes
The problem is not housing costs but income. Incomes have not increased while prices have soared on homes, cars, food, health insurance, college tuition, you name it. The federal minimum wage is $7.25/hour-the last increase in this was in 2009.
That’s mind-blowing. 14 years of inflation without increasing the minimum wage is just unfair cruelty to American citizens.
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It was hard enough for us GenXers; it's impossible for Millennials and GenZ. I bought my small 2BR house in 1997 for $99k...by overworking myself and getting lucky. There was a brief a buyer's market and I had to work 6 months of double shifts to afford the down payment and closing costs. I haven't been able to do much to update it, yet the market insists it's currently worth $265k. The interest rates are too high for me to take an affordable equity loan to update it, so my 33yo daughter and I are DIYing what we can and hoping the rates go down. (She lives with me. I'm disabled, so she does the things I can't do, which is a lot. I'd have to pay someone else anyway, so I might as well make her life a bit easier. She'll inherit a fully paid off, hopefully fully renovated house.)
Jesus Christ, where do you live? My house is 3 br 2 bath, 1692 SQ ft in a quiet country subdivision on half an acre. Paid $92k in 1992. House is worth about $340+K now. Brand new roof, well, water softener, kitchen, main bathroom & hot water heater. Might be worth more than $340k.
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The mistake is thinking the American dream is a comfortable way of life, it isn't, it is being able to capitalize on (exploit) others. The American dream is for the rich to have a massive passive income while denying the poor the smallest token of the same privilege.
Remember this when you go to vote. Wealth creation via property price inflation isn't wealth creation at all, but the transfer of wealth from non-home owners (who likely already poor) to existing homeowners (who already likely to have some wealth). The more property people own, the more wealth is transferred to them by the poor, without them doing any work, creating or delivering a product or service or generating any jobs. This is caused by the way banks are allowed to create money out of thin air to loan as mortgages, so those who are able to borrow can. There are ways to fix this, rent controls, higher mortgage fees on second homes and rental property, but the best way would be to prevent banks from lending as speculation by discounting first home buyers.
To add, the first-time buyer discount should designed so that an average mortgage is cheaper than the average rent for the same property. Thus those with steady incomes are able to buy, if they prefer, instead of rent. The costs for this should be moved to those who can afford second mortgages. This ensures that homebuilders still build the same amount of homes, as former renters are now buyers. Fixer-upers should get tax relief on the materials and labour to offset the extra mortgage costs.
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*Cynical Sydney laughter*. I bought a house in Sydney in 1995 for $170K. I had inherited some money and had a good job, so it was relatively easy. That house now, nearly 30 years later, would sell for $1.4M - at least. When they say that Sydney is one of the most expensive places in the world to buy real estate, they're not kidding.
My mortgage is less than $900 a month on a 3br condo. Spouse and I want to move to another state, but we can't rent a postage stamp for what we're paying right now. Part of the problem is that people with lower-priced "starter" homes, like us, can't afford to move up, and no one builds starters anymore, so there's nothing below $300K for those starting out to buy. The market *will* collapse, and it's going to be ten times worse than 2008 was.
There is a lot of people who are praying for a collapse to right all the wrong that has happened.
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Some stats from Experion: a perfect credit score is 850. 73% of the people with that score are Baby Boomers (though only 20.58% of the general population). 22% are Gen X (19.68% of pop.) And only 4% of the people with perfect credit are either Millennials or Gen Z (combined 42.55% of pop.). We cannot survive on a hard-cash economy. Housing is the foundation of the credit system in the US. Therefore the US has two choices, and both require government intervention: increase the housing stock, or nationalize and raise education/job training alongside the social safety net in general, so Americans can be lifelong renters like Germans without collapsing the economy.
Part of that good rating is a Catch-22: one reason they get there IS because they have been regularly paying for a long period of time on a mortgage. Also, part of a credit rating is credit history, so it's sensible (for better or for worse) that gen z won't have perfect credit. 20+ years account history is where you want to be. Get your kids as an authorized user on your credit card early and open a checking account as soon as they are eligible.
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I’m Gen X and I will never be able to afford a house—my field is not lucrative (though I love it). Housing costs and rent are the worst I have ever seen, ever. It’s untenable for those of us in the arts, especially in urban/suburban areas near major cities.
I make almost 6 figures, but I'm a single mom, I still can't afford a house that's decent enough for my family on my own in this market. And since my credit is just ok (it took a few blows from some things about 5 years ago) that's another thing against me, that's stopping me from buying. However in the past 7 years i have NEVER EVER NOT ONCE been late on my ever increasing rent or car note. So I'm good enough to pay another mans mortgage, and for a deprecated car, just not good enough to own my own house. So depressing.
Here's another "fun" tidbit for y'all. Don't know about other places, but looking for somewhere to rent here, I got tired of every place I looked having terrible reviews for shady business practices and terrible landlords. So I tried from the other angle. Searched for the most reputable rental companies in my area. There were none. Of the dozens listed, the best one was rated one and a half stars out of five. All others were only one star. None even reached a two star performance. None. Every last rental company in my area was bogged down by numerous negative reviews. They're not just expensive, almost all of them are dishonest or otherwise disreputable as well.
Exactly but the Republicans making way worse in Florida landlords will be allowed to charge as many nonsense fees they want!!!!
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Here a breakdown of my cost in looking for a place for last 10 month and still homeless. Application fees spent for last 10 months 4630. Gas to and from looking 1568. Searches in Papers, searches sites, ECT 280. This is just to find a place. Then once you do, then spend a month going through hole lit of agervation to find out already rented place. Right now rent to high in even very rural areas and there is zero protection against predator real estate or land lords.
Application fees is just an excuse to steal from hopeful applicants, both scumlords and real estate companies greedy lying parasites
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I bought my first house at 20 for $60k. Five years later, took out a second mortgage and used it for a bigger house that cost 3x as much - ¾ acre with water on two sides. Still in that house and it is worth 2-3x as much... the only way someone could do that now is by building a time machine and getting in earlier. I think it's absolute bs that housing has outpaced wages by so much. I could never do (or afford) now what we did 20+ years ago. And I was fortunate to have never worked for minimum wage... people need to revolt!
There was a comment in there about how when baby boomers sell off all their big family homes, the market will crash. I bet a fair amount of those houses (at least the ones that are paid off) will be passed down to their kids. So hopefully those "kids" (ie: adult millenials) will finally have a nice place. I am the upper years of millenials, my husband is lower years of gen x - we were extremely fortunate and bought our house on a short sale in 2009. We've done a bit of upgrades, but the house could now sell for 4-5 times what we paid! The market is just that crazy. We hope, if the building boom near us doesn't ruin the beautiful rural area, that the house will pass down to one of our kids.
I was reading some analysis that boomers are struggling now to sell their long-owed family homes at the price they want. So they are just sitting instead. Eventually, when their children try to sell the inheritance, prices will have to fall as there isn't enough buyers for that price (otherwise their parents would've sold). I'm starting to accept this theory that house prices will either stagnant or fall (but not crash) for the next 20 years. Obviously, there will be variations & exceptions from place to place.
Load More Replies... Quotation: "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless" -Thomas Jefferson
This is all true. But Zillow also just makes up prices too. Like I've seen a house listed for 387k that we inspected/sold for $267k. Idk how their algorithm works but size of plot, house condition, neighborhood, local amenities (freeway access, malls, etc) all affect how much a house actually is worth and doesn't seem to be represented by Zillow formulas.
the American Dream was deliberately murdered with all the subtly of a mob hit.
When my son and I first got a 1 bedroom 8 years ago it was 750 all inclusive then a year later we moved into a 2 bedroom in the same house and the rent went up $90! When my bf and I decided to get a place 3 years later we couldn't find a two bedroom under $1500 now we need a 3 bedroom yet we're still in a two bedroom that's barely 800 sq feet for 5 people!
I dunno so much about all baby boomers downsizing... My parents bought the average 3bed/2bath (the home I would grow up in, in south Florida) with a small yard in 1979 for $79k and sold it in 2018ish for $1.2m to move to Las Vegas to build a much nicer 5/5 @ $800k now apparently worth around $2m! My twin sister and I were like wtf?! Lol! Only thing I think you can really do is ban things like Air BnB and tax rental income through the roof, like 100%, and I loath to say this as a Libertarian. Even my own little 3/2 1300sqft condo in a south Florida town you've almost certainly never heard of has appreciated in value over 200% since I closed in late 2017! I had no idea how the heck my single co-workers (same ageish/position) were managing $1500 rent when my mortgage was/is about $750!
Don't Americans realize that voting for politicians who promise lower taxes, unrestrained capitalism and cutting healthcare and other programs are THE reason for their falling incomes? I was born (youngest of the boomers) in a 3rd world Asian country and I don't live in America, yet I think I am financially and socially better off than my relatives who moved there. Americans have to realize that any politician who yells socialism is LYING and scaremongering. There are no socialist countries left in the world save Cuba and North Korea. Every country has some level of government programs (yes, even the US) to improve the life of their citizens. Yup, you can vote for "individual freedoms" like this guy https://www.nbcnews.com/id/wbna39516346
Doesn't anyone realize that Americans have been duped into thinking voting for politicians who push for lower taxes, unrestrained capitalism and striking down healthcare programs is THE reason the quality of their lives have been going down.
It's not just cost and wages. It's bills. Think about it, 30-40 years ago, you didn't pay for a cell phone, internet, streaming services. There was the antenna or you paid for cable/dish, whatever. You had a landlines that was local or you paid for long distance. The duplex next to me has been empty for 11 years. The guy bought, gutted it and has slowly been working on it. It's 3 bedrooms on the upper and 3 on the lower.
We moved from San Diego, CA to Springfield, OR last year & it was actually cheaper for us to buy a house than it was to rent.
We bought 6 years ago and were on the low side of the income bracket. So, we had a really rough time competing with all the flippers and rental investors that were bidding (well over asking prices) and paying in cash. Several times, we went to see properties listed on MLS that same day, and 4 or 5 offers had already been made that blew our budget out of the water. People who flip houses are oblivious (or uncaring) to the fact that real people need affordable houses they can fix up themselves over time. I have a friend who is already wealthy, but is always wanting more, so he started flipping houses around that time. Even though he saw what we were going through, he had absolutely no qualms about building his fortune on the backs of people like us… and this guy is actually a good friend! Imagine how much less people care that don’t even know the families they’re hurting! Fast forward 6 years and we have 4 grown kids still living at home who can’t afford this illusive “American dream”.
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Yep. Bought my house in 2018 for $225,000 and BOTH me and my husband bought together. Same house, very minor improvements (new carpet upstairs and updated appliances) and suddenly it's worth $450k. We can't afford to move bc it's so expensive everywhere and we have a good interest rate on this house. I love my home, it was my dream home (always wanted a 2 story brick home) but it's more and more becoming difficult to get up and down the stairs due to my spinal condition. So, we'll just stay here until my son finishes med school and then we'll move wherever he ends up.
If you can, or if your job can be done remotely rural areas are more affordable but so many people want to be near the beach or popular venues those places will be in demand.
I was talking with my mom awhile ago. Back in the day, they were able to purchase a large lot on a quiet street. They built a four bedroom, 2 full baths, living room, family room, kitchen with attached dinette, formal dinning room, two car garage, huge yards. When we discussed the cost of it, I laughed and said my cell phone bill is more than their mortgage had been on it!!!
My parents have dealt with financial issues so they are still paying the mortgage after all these years. The original price was $100,000. Their payments are lower than the crappy apartments in the same area that are maybe 500 sq ft studios. Their house is now worth $950,000. No, they don't live in a mansion. It is 1800 sq ft.
I could not afford to live in my neighborhood if I was buying a house today. My husband (boyfriend at the time) and I moved from PA to AZ in 2007. I threw a fit about not wanting him to buy a house because I didn’t want to live someplace he owned. Then the bubble burst on the housing market and people were foreclosing in their homes because they were upside down (house was worth significantly less than the amount they still owed). We progressed in our relationship and I somehow became comfortable living in a house he owned and I rented. He used an FHA loan, put 3.5% down, and bought his first house in 2010, about $125K. We got married at the end of 2014 and refinanced in 2015 adding me to the mortgage and reducing it to 15 years. Our house is worth over $400K now. Our mortgage is around $1K. We have under $40K remaining to pay off. We pay less than everyone we know who rents and their rent continually increases. We got so lucky with when we bought. So lucky.
It has nothing to do with us being somehow better with money, not getting Starbucks, etc. We are very careful and we do work hard to live within our means but so do many many people who rent. It really was lucky timing for us that’s the main reason we’re in our current position.
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my 23 yr old son and I are downsizing from our 2 bedroom duplex into a 35ft fifth wheel because the owner decided she wanted an airBnB instead of tenants and decided not to renew our lease. go go housing!
Since airBnB's are starting to fail because of the ridiculous fees and such, I truly hope all airBnB owners end up failing hard. They kicked out so many people and families due to their greed and I honestly hope it backfires on them 1000%. Mean? Not when decent folks lost their homes for their landlord's greed. So I wish that onto your landlord as well. Greed makes one fall hard once the rug is pulled out, and it WILL happen.
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We're feeling the effects of 4 years under that "moron".
Load More Replies... The problem is not housing costs but income. Incomes have not increased while prices have soared on homes, cars, food, health insurance, college tuition, you name it. The federal minimum wage is $7.25/hour-the last increase in this was in 2009.
That’s mind-blowing. 14 years of inflation without increasing the minimum wage is just unfair cruelty to American citizens.
Load More Replies... It was hard enough for us GenXers; it's impossible for Millennials and GenZ. I bought my small 2BR house in 1997 for $99k...by overworking myself and getting lucky. There was a brief a buyer's market and I had to work 6 months of double shifts to afford the down payment and closing costs. I haven't been able to do much to update it, yet the market insists it's currently worth $265k. The interest rates are too high for me to take an affordable equity loan to update it, so my 33yo daughter and I are DIYing what we can and hoping the rates go down. (She lives with me. I'm disabled, so she does the things I can't do, which is a lot. I'd have to pay someone else anyway, so I might as well make her life a bit easier. She'll inherit a fully paid off, hopefully fully renovated house.)
Jesus Christ, where do you live? My house is 3 br 2 bath, 1692 SQ ft in a quiet country subdivision on half an acre. Paid $92k in 1992. House is worth about $340+K now. Brand new roof, well, water softener, kitchen, main bathroom & hot water heater. Might be worth more than $340k.
Load More Replies... The mistake is thinking the American dream is a comfortable way of life, it isn't, it is being able to capitalize on (exploit) others. The American dream is for the rich to have a massive passive income while denying the poor the smallest token of the same privilege.
Remember this when you go to vote. Wealth creation via property price inflation isn't wealth creation at all, but the transfer of wealth from non-home owners (who likely already poor) to existing homeowners (who already likely to have some wealth). The more property people own, the more wealth is transferred to them by the poor, without them doing any work, creating or delivering a product or service or generating any jobs. This is caused by the way banks are allowed to create money out of thin air to loan as mortgages, so those who are able to borrow can. There are ways to fix this, rent controls, higher mortgage fees on second homes and rental property, but the best way would be to prevent banks from lending as speculation by discounting first home buyers.
To add, the first-time buyer discount should designed so that an average mortgage is cheaper than the average rent for the same property. Thus those with steady incomes are able to buy, if they prefer, instead of rent. The costs for this should be moved to those who can afford second mortgages. This ensures that homebuilders still build the same amount of homes, as former renters are now buyers. Fixer-upers should get tax relief on the materials and labour to offset the extra mortgage costs.
Load More Replies... *Cynical Sydney laughter*. I bought a house in Sydney in 1995 for $170K. I had inherited some money and had a good job, so it was relatively easy. That house now, nearly 30 years later, would sell for $1.4M - at least. When they say that Sydney is one of the most expensive places in the world to buy real estate, they're not kidding.
My mortgage is less than $900 a month on a 3br condo. Spouse and I want to move to another state, but we can't rent a postage stamp for what we're paying right now. Part of the problem is that people with lower-priced "starter" homes, like us, can't afford to move up, and no one builds starters anymore, so there's nothing below $300K for those starting out to buy. The market *will* collapse, and it's going to be ten times worse than 2008 was.
There is a lot of people who are praying for a collapse to right all the wrong that has happened.
Load More Replies... Some stats from Experion: a perfect credit score is 850. 73% of the people with that score are Baby Boomers (though only 20.58% of the general population). 22% are Gen X (19.68% of pop.) And only 4% of the people with perfect credit are either Millennials or Gen Z (combined 42.55% of pop.). We cannot survive on a hard-cash economy. Housing is the foundation of the credit system in the US. Therefore the US has two choices, and both require government intervention: increase the housing stock, or nationalize and raise education/job training alongside the social safety net in general, so Americans can be lifelong renters like Germans without collapsing the economy.
Part of that good rating is a Catch-22: one reason they get there IS because they have been regularly paying for a long period of time on a mortgage. Also, part of a credit rating is credit history, so it's sensible (for better or for worse) that gen z won't have perfect credit. 20+ years account history is where you want to be. Get your kids as an authorized user on your credit card early and open a checking account as soon as they are eligible.
Load More Replies... I’m Gen X and I will never be able to afford a house—my field is not lucrative (though I love it). Housing costs and rent are the worst I have ever seen, ever. It’s untenable for those of us in the arts, especially in urban/suburban areas near major cities.
I make almost 6 figures, but I'm a single mom, I still can't afford a house that's decent enough for my family on my own in this market. And since my credit is just ok (it took a few blows from some things about 5 years ago) that's another thing against me, that's stopping me from buying. However in the past 7 years i have NEVER EVER NOT ONCE been late on my ever increasing rent or car note. So I'm good enough to pay another mans mortgage, and for a deprecated car, just not good enough to own my own house. So depressing.
Here's another "fun" tidbit for y'all. Don't know about other places, but looking for somewhere to rent here, I got tired of every place I looked having terrible reviews for shady business practices and terrible landlords. So I tried from the other angle. Searched for the most reputable rental companies in my area. There were none. Of the dozens listed, the best one was rated one and a half stars out of five. All others were only one star. None even reached a two star performance. None. Every last rental company in my area was bogged down by numerous negative reviews. They're not just expensive, almost all of them are dishonest or otherwise disreputable as well.
Exactly but the Republicans making way worse in Florida landlords will be allowed to charge as many nonsense fees they want!!!!
Load More Replies... Here a breakdown of my cost in looking for a place for last 10 month and still homeless. Application fees spent for last 10 months 4630. Gas to and from looking 1568. Searches in Papers, searches sites, ECT 280. This is just to find a place. Then once you do, then spend a month going through hole lit of agervation to find out already rented place. Right now rent to high in even very rural areas and there is zero protection against predator real estate or land lords.
Application fees is just an excuse to steal from hopeful applicants, both scumlords and real estate companies greedy lying parasites
Load More Replies... I bought my first house at 20 for $60k. Five years later, took out a second mortgage and used it for a bigger house that cost 3x as much - ¾ acre with water on two sides. Still in that house and it is worth 2-3x as much... the only way someone could do that now is by building a time machine and getting in earlier. I think it's absolute bs that housing has outpaced wages by so much. I could never do (or afford) now what we did 20+ years ago. And I was fortunate to have never worked for minimum wage... people need to revolt!
There was a comment in there about how when baby boomers sell off all their big family homes, the market will crash. I bet a fair amount of those houses (at least the ones that are paid off) will be passed down to their kids. So hopefully those "kids" (ie: adult millenials) will finally have a nice place. I am the upper years of millenials, my husband is lower years of gen x - we were extremely fortunate and bought our house on a short sale in 2009. We've done a bit of upgrades, but the house could now sell for 4-5 times what we paid! The market is just that crazy. We hope, if the building boom near us doesn't ruin the beautiful rural area, that the house will pass down to one of our kids.
I was reading some analysis that boomers are struggling now to sell their long-owed family homes at the price they want. So they are just sitting instead. Eventually, when their children try to sell the inheritance, prices will have to fall as there isn't enough buyers for that price (otherwise their parents would've sold). I'm starting to accept this theory that house prices will either stagnant or fall (but not crash) for the next 20 years. Obviously, there will be variations & exceptions from place to place.
Load More Replies... Quotation: "If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless" -Thomas Jefferson
This is all true. But Zillow also just makes up prices too. Like I've seen a house listed for 387k that we inspected/sold for $267k. Idk how their algorithm works but size of plot, house condition, neighborhood, local amenities (freeway access, malls, etc) all affect how much a house actually is worth and doesn't seem to be represented by Zillow formulas.
the American Dream was deliberately murdered with all the subtly of a mob hit.
When my son and I first got a 1 bedroom 8 years ago it was 750 all inclusive then a year later we moved into a 2 bedroom in the same house and the rent went up $90! When my bf and I decided to get a place 3 years later we couldn't find a two bedroom under $1500 now we need a 3 bedroom yet we're still in a two bedroom that's barely 800 sq feet for 5 people!
I dunno so much about all baby boomers downsizing... My parents bought the average 3bed/2bath (the home I would grow up in, in south Florida) with a small yard in 1979 for $79k and sold it in 2018ish for $1.2m to move to Las Vegas to build a much nicer 5/5 @ $800k now apparently worth around $2m! My twin sister and I were like wtf?! Lol! Only thing I think you can really do is ban things like Air BnB and tax rental income through the roof, like 100%, and I loath to say this as a Libertarian. Even my own little 3/2 1300sqft condo in a south Florida town you've almost certainly never heard of has appreciated in value over 200% since I closed in late 2017! I had no idea how the heck my single co-workers (same ageish/position) were managing $1500 rent when my mortgage was/is about $750!
Don't Americans realize that voting for politicians who promise lower taxes, unrestrained capitalism and cutting healthcare and other programs are THE reason for their falling incomes? I was born (youngest of the boomers) in a 3rd world Asian country and I don't live in America, yet I think I am financially and socially better off than my relatives who moved there. Americans have to realize that any politician who yells socialism is LYING and scaremongering. There are no socialist countries left in the world save Cuba and North Korea. Every country has some level of government programs (yes, even the US) to improve the life of their citizens. Yup, you can vote for "individual freedoms" like this guy https://www.nbcnews.com/id/wbna39516346
Doesn't anyone realize that Americans have been duped into thinking voting for politicians who push for lower taxes, unrestrained capitalism and striking down healthcare programs is THE reason the quality of their lives have been going down.
It's not just cost and wages. It's bills. Think about it, 30-40 years ago, you didn't pay for a cell phone, internet, streaming services. There was the antenna or you paid for cable/dish, whatever. You had a landlines that was local or you paid for long distance. The duplex next to me has been empty for 11 years. The guy bought, gutted it and has slowly been working on it. It's 3 bedrooms on the upper and 3 on the lower.
We moved from San Diego, CA to Springfield, OR last year & it was actually cheaper for us to buy a house than it was to rent.
We bought 6 years ago and were on the low side of the income bracket. So, we had a really rough time competing with all the flippers and rental investors that were bidding (well over asking prices) and paying in cash. Several times, we went to see properties listed on MLS that same day, and 4 or 5 offers had already been made that blew our budget out of the water. People who flip houses are oblivious (or uncaring) to the fact that real people need affordable houses they can fix up themselves over time. I have a friend who is already wealthy, but is always wanting more, so he started flipping houses around that time. Even though he saw what we were going through, he had absolutely no qualms about building his fortune on the backs of people like us… and this guy is actually a good friend! Imagine how much less people care that don’t even know the families they’re hurting! Fast forward 6 years and we have 4 grown kids still living at home who can’t afford this illusive “American dream”.
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Yep. Bought my house in 2018 for $225,000 and BOTH me and my husband bought together. Same house, very minor improvements (new carpet upstairs and updated appliances) and suddenly it's worth $450k. We can't afford to move bc it's so expensive everywhere and we have a good interest rate on this house. I love my home, it was my dream home (always wanted a 2 story brick home) but it's more and more becoming difficult to get up and down the stairs due to my spinal condition. So, we'll just stay here until my son finishes med school and then we'll move wherever he ends up.
If you can, or if your job can be done remotely rural areas are more affordable but so many people want to be near the beach or popular venues those places will be in demand.
I was talking with my mom awhile ago. Back in the day, they were able to purchase a large lot on a quiet street. They built a four bedroom, 2 full baths, living room, family room, kitchen with attached dinette, formal dinning room, two car garage, huge yards. When we discussed the cost of it, I laughed and said my cell phone bill is more than their mortgage had been on it!!!
My parents have dealt with financial issues so they are still paying the mortgage after all these years. The original price was $100,000. Their payments are lower than the crappy apartments in the same area that are maybe 500 sq ft studios. Their house is now worth $950,000. No, they don't live in a mansion. It is 1800 sq ft.
I could not afford to live in my neighborhood if I was buying a house today. My husband (boyfriend at the time) and I moved from PA to AZ in 2007. I threw a fit about not wanting him to buy a house because I didn’t want to live someplace he owned. Then the bubble burst on the housing market and people were foreclosing in their homes because they were upside down (house was worth significantly less than the amount they still owed). We progressed in our relationship and I somehow became comfortable living in a house he owned and I rented. He used an FHA loan, put 3.5% down, and bought his first house in 2010, about $125K. We got married at the end of 2014 and refinanced in 2015 adding me to the mortgage and reducing it to 15 years. Our house is worth over $400K now. Our mortgage is around $1K. We have under $40K remaining to pay off. We pay less than everyone we know who rents and their rent continually increases. We got so lucky with when we bought. So lucky.
It has nothing to do with us being somehow better with money, not getting Starbucks, etc. We are very careful and we do work hard to live within our means but so do many many people who rent. It really was lucky timing for us that’s the main reason we’re in our current position.
Load More Replies... my 23 yr old son and I are downsizing from our 2 bedroom duplex into a 35ft fifth wheel because the owner decided she wanted an airBnB instead of tenants and decided not to renew our lease. go go housing!
Since airBnB's are starting to fail because of the ridiculous fees and such, I truly hope all airBnB owners end up failing hard. They kicked out so many people and families due to their greed and I honestly hope it backfires on them 1000%. Mean? Not when decent folks lost their homes for their landlord's greed. So I wish that onto your landlord as well. Greed makes one fall hard once the rug is pulled out, and it WILL happen.
Load More Replies... We're feeling the effects of 4 years under that "moron".
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