Quote:
Originally Posted by Fighting Banana Slug
While I do feel the younger generation will have a more difficult time owning a home, is the situation described above really that much different than for other generations? The 4x price differential is probably about right. However, the same differential existed when I bought in the late 90's compared to when my parents bought in the late 60's. Parents bought a nice suburban home for $39k in 1969. Sounds crazy right? I bought a bungalow, more inner-city for $185k in 1998. Also sounds crazy, right? Potential home owners are now looking at around $750k for comparable homes. I can pretty much guarantee that a home buyer in 1969, 1998 and 2017 felt/feel the exact same way. "This is insane, it can't be sustainable. I'll be the guy that loses money on my home." Obviously it could happen if you are on the wrong side of a bubble, but overall, almost everyone feels that pain but gets through it.
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Yes things are different.
Basics like rent and food are more expensive. It's indisputable that people spend a much higher proportion of incomes on rent now than they did 20 years ago.
The cost of tuition is higher, and the benefit received from education is lower.
As far as housing goes, when you compare the cost of a house to the average salary of a middle class person, the difference is astronomical. It's not just natural inflation as you are describing. While the price of the home between 1998 and now may have increased 4x, the salaries have not.
So basically, what people are describing as hard times for previous generations, have now been magnified many times. Yes the answer seems to be work harder and enjoy your life less.