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A lot of pent-up demand from young adults still living with their parents due to low supply/high prices. In effect, even with normal inventory, there is demand "in the pipeline".
A twenty-something's response: "That sounds like a lot of effort. I just want to be a social influencer and play video games."
We had to get real jobs to get health insurance. The whole Obamacare and extending health insurance from parents to age 26 really allowed the gig economy to expand. I'm not sure it was necessarily a great thing long term in most cases. My own insurance keeps getting worse and more expensive every year (not just the cost of the insurance but the co-pays and out of pocket as well as the maximum out of pocket keeps going up). It basically spread the costs of all the subsidized people with everyone else whether they can afford it or not.
We had to get real jobs to get health insurance. The whole Obamacare and extending health insurance from parents to age 26 really allowed the gig economy to expand. I'm not sure it was necessarily a great thing long term in most cases. My own insurance keeps getting worse and more expensive every year (not just the cost of the insurance but the co-pays and out of pocket as well as the maximum out of pocket keeps going up). It basically spread the costs of all the subsidized people with everyone else whether they can afford it or not.
Friends with whom we spend New Year's Eve each year commented their youngest daughter, age 25, now needs to find a real job with health insurance. In college, she wanted to become a large animal veterinarian, but lost her mojo as a senior (something about a boy), and has been a ski instructor (winters) and various service jobs in the summer. She's a bright young woman, but has been somewhat sheltered from adulthood because of staying on her parent's payroll, so to speak, with parent supplied health insurance. Our friends asked us for advice on how our daughter because a responsible adult, in their view, with a job & health benefits & her own townhouse & stock portfolio (out daughter is a bit older, in her early 30s). I'm not sure we have any practical advice anymore for someone attempting to "learn to be an adult" except to teach the mental model of salmon swimming upstream.
Friends with whom we spend New Year's Eve each year commented their youngest daughter, age 25, now needs to find a real job with health insurance. In college, she wanted to become a large animal veterinarian, but lost her mojo as a senior (something about a boy), and has been a ski instructor (winters) and various service jobs in the summer. She's a bright young woman, but has been somewhat sheltered from adulthood because of staying on her parent's payroll, so to speak, with parent supplied health insurance. Our friends asked us for advice on how our daughter because a responsible adult, in their view, with a job & health benefits & her own townhouse & stock portfolio (out daughter is a bit older, in her early 30s). I'm not sure we have any practical advice anymore for someone attempting to "learn to be an adult" except to teach the mental model of salmon swimming upstream.
Yes, you are right.
Because of my background I have kind of a tough love stance on the subject (which is likely inappropriately harsh). But, I don't know if it is really that different than your salmon.
At my vet clinic the women that will do dental work on a cat are rock stars because a lot of them just cannot do it. I am not sure what compelled that 'bright young woman' to want to deal with large animals in a medical setting (unless she is big and burly and hardcore). Some of these kids are really running a scam on their parents. That sounds really "off." She is still very young and can still turn herself around. Marrying well is still the best choice (some things never change). Usually that is something that just happens because of getting married young and not knowing what the outcome will be upfront.
Friends with whom we spend New Year's Eve each year commented their youngest daughter, age 25, now needs to find a real job with health insurance. In college, she wanted to become a large animal veterinarian, but lost her mojo as a senior (something about a boy), and has been a ski instructor (winters) and various service jobs in the summer. She's a bright young woman, but has been somewhat sheltered from adulthood because of staying on her parent's payroll, so to speak, with parent supplied health insurance. Our friends asked us for advice on how our daughter because a responsible adult, in their view, with a job & health benefits & her own townhouse & stock portfolio (out daughter is a bit older, in her early 30s). I'm not sure we have any practical advice anymore for someone attempting to "learn to be an adult" except to teach the mental model of salmon swimming upstream.
We're seeing the results of helicopter parenting, everybody gets a trophy, and feelings matter more than facts generation as they become adults. I don't know how it plays out in the long run but I don't like the way it's headed. In my experience, I don't think a lot of these people are prepared to deal with the stress and real world problems, but we'll find out in the next 20-40 years. I could say more but I'll leave it at that.
You underestimate the number of 20-somethings and 30-somethings who make a lot of money. Perhaps you do not, but many do.
For example, a month ago my daughter closed on a new construction townhouse for about $530K. All cash. No money from parents.
And it was likely not her first property is the part you left out. The barrier is entering the market in the first place. People who owned already before the pandemic have had double or even triple digit growth on their home prices. Did she downsize after a divorce or something? Where’s the cash coming from? Is she living with you while you pay her bills to save like $80k a year from age 21-29? Things like that are not the norm for most people. I’m glad your daughter is successful and wish her well but the idea that prices aren’t overvalued simply because the top 5% of income earners are able to buy the cheapest properties is just not good math
And it was likely not her first property is the part you left out. The barrier is entering the market in the first place. People who owned already before the pandemic have had double or even triple digit growth on their home prices. Did she downsize after a divorce or something? Where’s the cash coming from? Is she living with you while you pay her bills to save like $80k a year from age 21-29? Things like that are not the norm for most people. I’m glad your daughter is successful and wish her well but the idea that prices aren’t overvalued simply because the top 5% of income earners are able to buy the cheapest properties is just not good math
Oh, I think Mogul must have lit a fire under the young lass's arse. He needs her to know how to be successful and manage money because she's going to inherit quite the F ton.
There's no doubt that growing up with the resources to pursue every talent you might possess and also having the psychological and emotional support is a huge advantage. However, it must be such a challenge to keep a kid on the straight and narrow and focused on worthy goals, etc.
I don't know what kind of immigrants are buying houses in that price range in south central Texas either, or what kind of average Joe can afford a house for over a million in the first place.
The average price for a 3 bedroom bungalow in my city is currently sitting at $925K with rates at a 30 year high and we don't have the techno-millionaire salaries up here in Canada. However, what we do have is an irresponsible immigration policy that is bringing in new Canadians, students and refugees with few options to house them, at a rate that is rapidly driving up the cost of housing to higher and higher prices.
Again, you underestimate the types of jobs that pay well.
Freshly minted engineers fresh out of university with zero work experience.
Freshly minted MBAs from top-20 schools with minimal work experience.
Freshly minted lawyers straight out of law school with zero work experience -- NALP’s 2023 Associate Salary Survey report notes that as of January 1, 2023, the median base salary for first-year associates was $200,000, which is up $35,000 from 2021, the last time this survey came out.
I think what people mean to say is that it is not possible for 95%+ of the young adult population to achieve those academic goals or earn those salaries.
They will lose the rat race and hence not be able to afford their dream homes for years if not decades.
I think what people mean to say is that it is not possible for 95%+ of the young adult population to achieve those academic goals or earn those salaries.
They will lose the rat race and hence not be able to afford their dream homes for years if not decades.
I think what we need is more townhouse complexes with parking and communal park/playground areas for the kids. A lot of these were built 40-50 years ago but no much nowadays. If kids are going to be raised in rented homes it would be nice if they had the long term stability of being built for that purpose instead of sold out from under the family like SFDs rented out by investors are.
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