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I cant afford a house, I probably wont be able to buy one until my 40s and I'm 4 years away from being 30 now. I drive 80+ miles 5 days a week, just for work alone, so I'll probably need a new car faster than most people. I dont want a house until I am stable in my career. I'm not sure if I'll be staying in my current mertro area. I want to go back to grad school and I'm single. Buying a house is a bad investment at the moment.
You're never stable in your career, I don't care what it is. There are always RIFs or new performance metrics (ask me about FFT in education) or new products or whatever else going on.
A house isn't an investment, it's a place to live. That's one thing people lost sight of during the bubble (and the last housing bubble around 1990 for that matter).
If you don't know whether you'll relocate is a good reason to back away but, once again, you may always have to relocate. That used to be SOP in industry.
How is borrowing money for things and paying those loans off "abuse"? Keep in mind some of that "abuse" was college loans for you all.
I do not think you can equate the two. A college education has become increasingly important, yet tuition has risen meteorically. Many of the jobs that were once available without a degree now essentially require them because there is too much competition for you to not have one. There are only so many careers that do not require college degrees that people can pursue. After that point, a sacrifice has to be made with the intent of gaining access to new opportunities. A college degree has become a cost of life and a significant one at that because tuition has so dramatically increased in price compared to generations before. The cost of a degree from the 80s does not even begin to compare to the cost of one now while wages have declined adjusted for inflation since then.
You're never stable in your career, I don't care what it is. There are always RIFs or new performance metrics (ask me about FFT in education) or new products or whatever else going on.
A house isn't an investment, it's a place to live. That's one thing people lost sight of during the bubble (and the last housing bubble around 1990 for that matter).
If you don't know whether you'll relocate is a good reason to back away but, once again, you may always have to relocate. That used to be SOP in industry.
the city where I live has one of the highest foreclosure rates in the country. So it's great for buyers, but tough for sellers as they are great homes for low prices. My friend bought a home built in 2000s about 2700 sq ft for $80,000. But she probably will have a tough time selling it because they are several homes in that range and it's in a bad school district.
I just dont feel comfortable buying a home for one person. I feel like homes are better fit for a family.
Wages have declined the last few years, recession caused supply and demand. Trust me when I tell you, though, paying for college at a $1.75/hour was difficult, too. Loans for college were not subsidized, the interest rate was at market or above rate, and almost impossible to get.
Wages have declined the last few years, recession caused supply and demand. Trust me when I tell you, though, paying for college at a $1.75/hour was difficult, too. Loans for college were not subsidized, the interest rate was at market or above rate, and almost impossible to get.
Your $1.75 was worth far more then as well. That's the point of inflation destroying wages. Year-over-year, wages have declined against inflation since the 70s.
I'm 29. I can tell you why my generation does not buy homes and why we drive beaters or rent cars.
-jobs are hard to come by. My brother is unemployed and doing odd jobs. He cannot afford to move out of Mom and Dad's house. One of my best friends cannot find work because she has MS. My other bestie went for a year working at McDonald's and could barely afford the room rental she has. They are in their twenties. My friend with MS is married and has two kids. They just seem to struggle all the time. It never seems to get better. Another friend lost his job last week. Out here in SoCal, just like in Northern Utah, I know many who barely can stay out of their parents homes. Others live with boyfriend/girlfriend because they cannot afford to live away from home otherwise. At least half the people my age and older I have met here (21-35 years of age) are underemployed or unemployed. Many do consulting work, odd jobs, tutoring, whatever they can find. Those who have full-time jobs, like me, are scared they are going to get laid off or fired and end up flipping burgers at McDonald's at some point. I have been laid off during this recession, several times, and each time it got worse. The last time I was unemployed for six months. I have high school classmates who have families who have had to move back in with Mom and Dad because they just can't make it.
-Housing is RIDICULOUSLY overpriced everywhere. I rent a room from a guy who has a good paying job in healthcare who struggles with house payments. That's why I can rent a room here. It is becoming the norm in California for people to buy homes and then rent out rooms. The housing is obviously overvalued here. At some point it is going to have to fall in line. No one who has moved here or bought a house within the last ten years has been able to afford a house without a struggle. The last couple I lived with (Baby Boomers) were not turning on lights, not turning on the AC or heat, timing showers, letting their cat roast in the summer, forgoing medical care and doing all sorts of other bill cutting type stuff so they can stay in their overpriced house built in 1962. My parents house in Utah has gone up from $109,000 to $169,000, which is what it the assessor says it is worth now. During that same 14 year time period, wages in that area of Utah pretty much stagnated. WHY did that house go up so much? What was the justification? WHY would I want to buy a house? So I can get a cat or dog and let it die of heatstroke because I'm too broke to turn on the AC at all? So I can forgo medical care? So I can say I have a stupid overpriced house? I keep hearing about how homes have hit bottom. Uh, no, they have not. At some point the housing is going to have to drop relative to what the people who are the target age range for buying can afford. And twenty and thirtysomethings aren't making much. At all.
-Back to jobs: they just are not reliable. Buying a house and a car makes it harder to move. A house is also a long-term commitment. If I don't know that I am going to have a job tomorrow because tomorrow some greedy useless piece of crap who calls himself/herself CEO decides to lay people off to pad the bottom line, why would I want a house? The days my parents and grandparents lived through where one could work for a company for years and years and not be laid off are gone. It is an odd to encounter anyone my age who has worked for the same company for over 2 years, because companies are like revolving doors these days.
I am not going to sit here and buy a house, get a fancy new Beemer, marry and have kids if tomorrow I'm going to lose the job, then the house, then the car, have the black mark on my credit, and possibly be panhandling on the streets to raise money to feed my kids.
And I should add, MANY of the people my age that I know who have families are on welfare, or have a ton of support from parents. I know of many Mormons my age (fyi I'm not Mormon myself) who have families who struggle, and it seems worse than their parents. Even eating the same diet their parents did at their age and forgoing the toys, they end up in the bishop's storehouse or applying for welfare and food stamps.
Sure, my parents and grandparents struggled, but its not getting better for my generation. I've met many my age and many who are older, who tell me, and agree with me...it doesn't seem to be getting better like it did for our parents.
"Why Aren't Twentysomethings Buying Cars or Houses?"
"It's the Economy Stupid"
Unless those in their 20s received a degree and immediately got a position that is in high demand it is quite tough, even for many to get internships. Therefore, you have a massive underemployment problem, a student loan debt problem, low wages with respect to inflation, overpriced houses, overpriced new/used cars, and not enough fiscal conservatism to go around. I think we need to redefine what "Middle Class" actually means because it sure doesn't mean buying a house for many younger people- particularly when most jobs come with little security and less benefits compared to the past.
Last edited by GraniteStater; 09-09-2012 at 06:18 PM..
So am i the only one here who thinks a lot of young people don't want to buy into the whole suburbia lifestyle? Believe it or not there are plenty of kids where I live who make good money and don't want to live in the burbs and drive new cars. Hang out awhile on Capitol Hill or Arlington and you'll start to understand. Urban life is pretty nice.
So am i the only one here who thinks a lot of young people don't want to buy into the whole suburbia lifestyle? Believe it or not there are plenty of kids where I live who make good money and don't want to live in the burbs and drive new cars. Hang out awhile on Capitol Hill or Arlington and you'll start to understand. Urban life is pretty nice.
I agree I love city living or at least close in suburbs and as it happens, its very expensive to own there
So am i the only one here who thinks a lot of young people don't want to buy into the whole suburbia lifestyle? Believe it or not there are plenty of kids where I live who make good money and don't want to live in the burbs and drive new cars. Hang out awhile on Capitol Hill or Arlington and you'll start to understand. Urban life is pretty nice.
This doesn't seem to be nearly as common in the Midwest as suburban living seems to be very common and sprawl is everywhere.
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I have high school classmates who have families who have had to move back in with Mom and Dad because they just can't make it. 
