But can the Millennials afford it?
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Consider the couple...A postman married to a schoolteacher and they have two children. They have a credit score of around 700. A new home is 300-350 thousand dollars.
To get around PMI, they need $60-70k down payment.
And they need to be able to pay a $1200-$1300 monthly note + insurance + maintenance.
How can a couple like this ever own a home? Or any of many similar couples like cop/pharm tech, construction worker/waitress, teacher/teacher...guys that are making anywhere from $75k-$90k/yr.
“Cry havoc and let slip the DOGE of war!”
Those who cheered as J-6 American prisoners were locked in solitary for 18 months without trial, now suddenly fight tooth and nail for foreign terrorists’ "due process". — Buck Sexton
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For me? In 2009 at 27 years old I bought my (small) place using 3.5% down FHA loan after saving for a few years, includes PMI. 12 years later I’m able to put 20+% down on a conventional mortgage on a (big) place.
So your couple probably won’t avoid PMI and should just put 5% down.
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Those are pretty much the numbers we were faced with when we moved to Massachusetts in 2003. We could only pay down 5%, and paid PMI on a house that isn't really big enough for 4.
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Rent until you save enough? Might take 10 years?
Honestly no good answer...the cost of home ownership (and college tuition too) seems to have drastically outpaced the average income over the last 30 years.
@89th said in But can the Millennials afford it?:
Rent until you save enough? Might take 10 years?
Honestly no good answer...the cost of home ownership (and college tuition too) seems to have drastically outpaced the average income over the last 30 years.
I think there are still ways to do college. Stay at home, go the junior college route for two years and try to borrow as little as possible the last two years. For many degrees (teacher, business, nurse, criminal justice) this works. But not necessarily for the higher paying fields, such as engineering or other technical fields where good schools can drive work earnings.
But even with a college degree, home ownership seems to be slipping away for some young couples.
“Cry havoc and let slip the DOGE of war!”
Those who cheered as J-6 American prisoners were locked in solitary for 18 months without trial, now suddenly fight tooth and nail for foreign terrorists’ "due process". — Buck Sexton
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And another thing...
Post WW2, there was a housing boom in this country. Many of those homes, though, pale in comparison to many modern homes. I think we need to get back to a certain sector of housing...Smaller single-family homes of 1100-1500sqft, with contractor grade fixtures, either detached or built as row houses, with prices of $200,000 (in today's dollars) or less.
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@89th said in But can the Millennials afford it?:
Rent until you save enough? Might take 10 years?
Honestly no good answer...the cost of home ownership (and college tuition too) seems to have drastically outpaced the average income over the last 30 years.
I think there are still ways to do college. Stay at home, go the junior college route for two years and try to borrow as little as possible the last two years. For many degrees (teacher, business, nurse, criminal justice) this works. But not necessarily for the higher paying fields, such as engineering or other technical fields where good schools can drive work earnings.
But even with a college degree, home ownership seems to be slipping away for some young couples.
@jolly said in But can the Millennials afford it?:
But even with a college degree, home ownership seems to be slipping away for some young couples.
Agreed...especially in this sellers market. The couple who is buying my current home are both teachers. I think making a combined salary of $100k. After income taxes, PMI, insurance, property taxes, utilities, HOA fees, oh and normal living expenses...doesn’t leave much to save with or use when purchasing a home.
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According to a friend in the business, the biggest cause of the surging real estate market is because the lagging millennials are finally buying homes in force. He doesn’t expect it to end that soon, either.
The Brad
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Why fixating on single family houses? Why not apartments/condos or multi family houses?
As a matter of public policy, fix zoning and incentives to promote low cost housing, multi family ones too; with means- and asset-testing to ensure that only those with modest income/asset get to buy them as their main residences (screen out “investors” looking to collect rental properties).
As matter of individual choices, take advantage of federal government programs like the FHA loans.
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Why fixating on single family houses? Why not apartments/condos or multi family houses?
As a matter of public policy, fix zoning and incentives to promote low cost housing, multi family ones too; with means- and asset-testing to ensure that only those with modest income/asset get to buy them as their main residences (screen out “investors” looking to collect rental properties).
As matter of individual choices, take advantage of federal government programs like the FHA loans.
@axtremus said in But can the Millennials afford it?:
As a matter of public policy, fix zoning and incentives to promote low cost housing, multi family ones too; with means- and asset-testing to ensure that only those with modest income/asset get to buy them as their main residences (screen out “investors” looking to collect rental properties)
If you fix zoning none of the rest is necessary. In fact the rest is counterproductive.
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According to a friend in the business, the biggest cause of the surging real estate market is because the lagging millennials are finally buying homes in force. He doesn’t expect it to end that soon, either.
@lufins-dad said in But can the Millennials afford it?:
According to a friend in the business, the biggest cause of the surging real estate market is because the lagging millennials are finally buying homes in force. He doesn’t expect it to end that soon, either.
I'm currently working with a bid process at church, to repair some ice storm damage. One of the contractors and I were kicking some if this stuff around yesterday.
This guy has a lot of work, because his crew does things the old-fashioned way...His guys do the carpentry, roofing, sheet rock and millwork. That is unusual, but he has a tight reign on quality. Because of that, he stays pretty busy
But he thinks people are worried about rising interest rates more than material prices. He is almost to the point of turning down work, he's so hooked up. He's not building the type of stuff we're talking about here, though. When he left our meeting, he was driving to Toledo Bend, where he's starting a $600,000 house on the lake, for a guy retiring and moving out of Lake Charles.
That's a nice home for down here.
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Why fixating on single family houses? Why not apartments/condos or multi family houses?
As a matter of public policy, fix zoning and incentives to promote low cost housing, multi family ones too; with means- and asset-testing to ensure that only those with modest income/asset get to buy them as their main residences (screen out “investors” looking to collect rental properties).
As matter of individual choices, take advantage of federal government programs like the FHA loans.
@axtremus said in But can the Millennials afford it?:
Why fixating on single family houses? Why not apartments/condos or multi family houses?
As a matter of public policy, fix zoning and incentives to promote low cost housing, multi family ones too; with means- and asset-testing to ensure that only those with modest income/asset get to buy them as their main residences (screen out “investors” looking to collect rental properties).
As matter of individual choices, take advantage of federal government programs like the FHA loans.
I don’t mind having some condo buildings and townhome developments designed to prevent investors from scooping up the properties, but you handle that through HOA and community rules, not means and asset testing.
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Why fixating on single family houses? Why not apartments/condos or multi family houses?
As a matter of public policy, fix zoning and incentives to promote low cost housing, multi family ones too; with means- and asset-testing to ensure that only those with modest income/asset get to buy them as their main residences (screen out “investors” looking to collect rental properties).
As matter of individual choices, take advantage of federal government programs like the FHA loans.
@axtremus said in But can the Millennials afford it?:
Why fixating on single family houses? Why not apartments/condos or multi family houses?
As a matter of public policy, fix zoning and incentives to promote low cost housing, multi family ones too; with means- and asset-testing to ensure that only those with modest income/asset get to buy them as their main residences (screen out “investors” looking to collect rental properties).
As matter of individual choices, take advantage of federal government programs like the FHA loans.
Maybe in your neck of the woods it's different, but few people I know point to a condo with pride of ownership.
“Cry havoc and let slip the DOGE of war!”
Those who cheered as J-6 American prisoners were locked in solitary for 18 months without trial, now suddenly fight tooth and nail for foreign terrorists’ "due process". — Buck Sexton
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@axtremus said in But can the Millennials afford it?:
Why fixating on single family houses? Why not apartments/condos or multi family houses?
As a matter of public policy, fix zoning and incentives to promote low cost housing, multi family ones too; with means- and asset-testing to ensure that only those with modest income/asset get to buy them as their main residences (screen out “investors” looking to collect rental properties).
As matter of individual choices, take advantage of federal government programs like the FHA loans.
Maybe in your neck of the woods it's different, but few people I know point to a condo with pride of ownership.
@jolly said in But can the Millennials afford it?:
Maybe in your neck of the woods it's different, but few people I know point to a condo with pride of ownership.
Completely untrue here. Location >> type of house.
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@axtremus said in But can the Millennials afford it?:
Why fixating on single family houses? Why not apartments/condos or multi family houses?
As a matter of public policy, fix zoning and incentives to promote low cost housing, multi family ones too; with means- and asset-testing to ensure that only those with modest income/asset get to buy them as their main residences (screen out “investors” looking to collect rental properties).
As matter of individual choices, take advantage of federal government programs like the FHA loans.
Maybe in your neck of the woods it's different, but few people I know point to a condo with pride of ownership.
@jolly said in But can the Millennials afford it?:
@axtremus said in But can the Millennials afford it?:
Why fixating on single family houses? Why not apartments/condos or multi family houses?
As a matter of public policy, fix zoning and incentives to promote low cost housing, multi family ones too; with means- and asset-testing to ensure that only those with modest income/asset get to buy them as their main residences (screen out “investors” looking to collect rental properties).
As matter of individual choices, take advantage of federal government programs like the FHA loans.
Maybe in your neck of the woods it's different, but few people I know point to a condo with pride of ownership.
People need to change their expectations. When we moved from Canada we were basically forced to buy a house that was half the square-footage for double the price.
Not being able to own the house you'd really like isn't the same as not being able to own a home.
I was only joking
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I don't understand. Aren't we supposed to make fun of Millennials for whining about housing prices, because that's something they whined about during the Occupy Wall Street B.S.? We're not expected to take anything that came out of that seriously, are we? We're supposed to just say it's their fault and bring up participation trophies, right?
Please love yourself.
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Listening to millennials complain about house prices is nowhere near as annoying as listening to middle-aged Gen-x'ers complain about the tax they have to pay on their company cars.
I was only joking
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Listening to millennials complain about house prices is nowhere near as annoying as listening to middle-aged Gen-x'ers complain about the tax they have to pay on their company cars.
@doctor-phibes said in But can the Millennials afford it?:
middle-aged Gen-x'ers
I can't believe or understand how incredibly, amazingly, astonishingly redundant and repetitive and unnecessarily wordy that is.
Education is extremely important.
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Listening to millennials complain about house prices is nowhere near as annoying as listening to middle-aged Gen-x'ers complain about the tax they have to pay on their company cars.
@doctor-phibes said in But can the Millennials afford it?:
Listening to millennials complain about house prices is nowhere near as annoying as listening to middle-aged Gen-x'ers complain about the tax they have to pay on their company cars.
I didn't know you had a company car.
