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Actually, young people are not as interested in buying big homes and nice cars as previous generations per this link. They don't want McMansions, they prefer smaller livings spaces closer to city center. Once again, it is interesting you criticize young people who don't make a lot for being entitled, but you defend 50 year old executives with such vigor when people suggest he was being fiscally irresponsible. #cognitive dissonance
You were going on an assumption about that scenario, I know for a fact that many first time buyers are put off when they realize that they can only afford a 1960's rancher with a kitchen that has never been updated.
I find responses like this completely tone deaf but sadly it is all too typical. Basically it's the idea that, hey I'm doing okay, those who are not are idiots. As I mentioned before, if you are exceptional, you will do fine. But for the rest of us who are average, the deck has been stacked against us. Tons of jobs no longer exist here because of outsourcing. Yes, let us all become doctors or lawyers or work in the service industry. Let us retrain all factory workers to become nurses. At some point, you should realize it's never going to work. Unless this country can provide an entire spectrum of employment to absorb the entire spectrum of diverse talents we have in the population, we will continue to have high unemployment and underemployment.
My post aludes to the reason that many people are in a bad position. I have a friend that purchased an E class Mercedes some years back. I was comenting on his car and how I would love to have one. We were standing in line at the hospital cafeteria, him with his meager salad and me with my full meal, soda, and big piece of cake. My lunch cost me around $8 his cost him less than $3. You know what he told me? You could have a car like this if you started eating better and got out of debt. He explained it is all where you want to spend your money and your time.
I ended up taking his advice, going on a diet in more ways than one and changing what I spend my cash on. We stepped up our savings, started a side business, and were able to get out of an apartment and into a house. we will pay off that home in 12 more years (or less if i can help it.)
Recently I stepped it up some more. I am sitting here during my lunch time typing this out. For a while I had been spending my time as a Moderator here at City Data. That took too much of my time. I asked to be released from my responsibilities of Moderating. I went thru other things that take my time and adjusted accordingly. My time is valuable and I need off hours to work on building my brand. That is what is important to me and will benefit my family the most.
Anyone can do this. Anyone can look at where they are at, determine where they want to be, and get on the path to getting there. My thoughts were toward getting people to realize that they waste time, money, and resources on things that do not get them to realize the American Dream. The fact is that it is time to stop dreaming and start getting busy to get to where you want to be.
I know a lot of people that live in amazing homes. I drive past many more that live in amazing homes. These places can cost 7 to 8 figures. very few of those people were handed the keys by the real estate Gods and told they could move in for free. They worked for what they have. Everyone can do this it is not Rocket Science.
As far as population, we have 6 kids. I came from a family of 8 kids, so that would mean that people are having less kids. LOL
Someone mentioned living in an 1960's ranch home. We bought a 1962 ers Ranch Home in 2010 for $310,000 and love it. 4 bedroom 3 bath, 2 car garage, Laundry room between the kitchen and the garage. Our home had the plumbing, electrical upgraded but needs a lot of other things that we will do for it over the years.
It's called a Bubble and history proves that artificially high housing prices drop when the bubble bursts.
So noted -- except that where I live and even with the bubble popping, housing prices have either not dropped at all, or dropped so small and so insignificantly that the price difference is almost entirely negligible...
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It would be ridiculous to think that everyone should or could own a SFH. It's not even possible for upper income people in high density areas.
Please understand that I'm not trying to be flippant or anything here, but why do you think it is ridiculous, though? Prices were much more affordable for the same kinds of basic, average homes 30-40+ years ago, correct?
You were going on an assumption about that scenario, I know for a fact that many first time buyers are put off when they realize that they can only afford a 1960's rancher with a kitchen that has never been updated.
I actually own a very simple, no-frills split-level house that was built around the time of the 1960's!
So noted -- except that where I live and even with the bubble popping, housing prices have either not dropped at all, or dropped so small and so insignificantly that the price difference is almost entirely negligible...
Please understand that I'm not trying to be flippant or anything here, but why do you think it is ridiculous, though? Prices were much more affordable for the same kinds of basic, average homes 30-40+ years ago, correct?
Not really. My in-laws bought their home, a 1000 s/f ranch for about $12K in 1961. That same house is now worth about $100,000. A loaf of bread in 1961 was $.21, now it's about $2. The value of the home has only kept up with the rate of inflation, nothing more, nothing less. We expect to have a hard time selling the house when the time comes, because even though my father-in-law has kept it in immaculate condition, people don't want a 1000 s/f house, even though it will be a wonderfully affordable 3/1 home with central air, a one car garage with direct access to the house, and is on a really nice lot. (plus a partially finished basement.)
My parents bought a 1600 s/f house in 1966 and added on about 500 s/f in 1974 at a cost of about $18K. They paid $19.5 for it, it was recently sold for $210K. Taking into account the addition and it's relevant cost, again, the value of the home has pretty much kept up with inflation, noting more.
The house I bought in NJ in 1996 I paid $120K for. I sold it during the bubble for $314K. The people who bought it have it listed for $284K--they've had it on the market for over a year and keep nudging the price down. The reality is based on comps in the area that it is worth $180 in today's market. Again, not all that far off from inflation on other consumer products.
Not really. My in-laws bought their home, a 1000 s/f ranch for about $12K in 1961. That same house is now worth about $100,000. A loaf of bread in 1961 was $.21, now it's about $2. The value of the home has only kept up with the rate of inflation, nothing more, nothing less. We expect to have a hard time selling the house when the time comes, because even though my father-in-law has kept it in immaculate condition, people don't want a 1000 s/f house, even though it will be a wonderfully affordable 3/1 home with central air, a one car garage with direct access to the house, and is on a really nice lot. (plus a partially finished basement.)
My parents bought a 1600 s/f house in 1966 and added on about 500 s/f in 1974 at a cost of about $18K. They paid $19.5 for it, it was recently sold for $210K. Taking into account the addition and it's relevant cost, again, the value of the home has pretty much kept up with inflation, noting more.
The house I bought in NJ in 1996 I paid $120K for. I sold it during the bubble for $314K. The people who bought it have it listed for $284K--they've had it on the market for over a year and keep nudging the price down. The reality is based on comps in the area that it is worth $180 in today's market. Again, not all that far off from inflation on other consumer products.
It depends on where you live!
My wife's grandfather paid 11k for his house in 1963.When he died last year house sold for 405k.This is the Norm In California.
My mom lives in a very rural area that is losing jobs all the time, so people are moving away. She bought her house for $40K in 1993. That is $64,000 in 2013 dollars. She has had it appraised recently for $80K (by a bank, not a tax appraisal), even though houses aren't even selling very much where she lives.
The reality, at least for her, is that she got a deal in 1993 and would not be able to afford the same house if she tried to buy it today....even in a town with almost no jobs!
And, adjusted for inflation, she was making a higher hourly wage when she started an entry level job in the late 90s than today, even though she has moved up in the company and gotten raises every year.
It depends on where you live!
My wife's grandfather paid 11k for his house in 1963.When he died last year house sold for 405k.This is the Norm In California.
I used a rural economically depressed are (#1), a suburban long-term stable area (#2), and an urban high COL area (#3) in my examples, so I think your case is an anomaly.
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Prices were much more affordable for the same kinds of basic, average homes 30-40+ years ago, correct?
