https://tftc.io/martys-bent/issue-1251-attacking-symptoms-instead-of-the-core-of-the-problem/

". . .People cannot afford to purchase homes because the real estate market has been turned into a store-of-value asset for the wealthy. For the last 51 years the world has operated on a fiat monetary system that allows unproductive central planners to print money ex-nihilo and significantly debase the different currencies they manage. This debasement has forced people, particularly the wealthy, to shovel their rapidly debasing **** bucks into assets that prove to be better stores of value. Real estate being one of the best alternatives. The shoveling of money into real estate in an attempt to preserve purchasing power over time has, predictably, pushed the price of real estate through the roof. Pricing out large swaths of lower income people who would have been able to own homes in the middle of the 20th century. The insanely overpriced real estate market is a symptom of broken money. . ."

3.0 interest rates and people moving from commiefornia to Texas in droves hasn't helped

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Pricing out large swaths of lower income people who would have been able to own homes in the middle of the 20th century.

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Now compare all the taxes paid by those same people in the 1950s vs now. You'll find even more of an answer.

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The insanely overpriced real estate market is a symptom of broken money

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But I think you can say that about today's cost for any good, service, or asset.

I'm 32 and have owned 3 homes in my life, starting when I was 23. My twin brother is in the same boat. My older brother bought around 25. My younger brother bought around 27. My sisters also had houses by the time they were in their mid 20s.

Low interest rates and first time home buyer loans made it pretty easy actually.

Overspending on day to day items like starbucks, 3 meals of takeout, and fast fashion DAILY, phones, grooming, etc and not having savings is another.

For me it was subprime loans and subsequent collapse before rate resets. I bought a house at 27 for no money down with 20% financed in an interest only 5/1 ARM at 8%. When it reset the rate drop got capped by contract because it had crashed so hard. The subprime collapse literally created a wealth foundation on the back of basically paying rent.

Nothing quite like dancing with a predator only to watch the ground fall out from under it before you're completely in danger.

Kids shopping where they cannot afford.

It's because they refuse to earn enough to pay cash, or buy where they can afford, or don't know how to buy off market.

I just locked up +~60 acres with a mobile home 30 minutes from Waco for 225k. And a 16 unit apartment complex for the same price in east texas.

Deals are out there for those who are looking.

TRADUCTOR said:

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Kids shopping where they cannot afford.

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This x1000.

Plenty of jobs and opportunities out in middle America. Homes are very affordable. But you won't be in a hip neighborhood or have a local LGBT club to hang out.

They can afford houses if they buy what their money can buy. They all want the 4,000 sf home, instead of the simple 1,800 sf starter homes.

I think young people used to live in cheap apartments and now they live in expensive apartments.

3.0 % isn't the problem.

Emotional Support Cobra said:

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Overspending on day to day items like starbucks, 3 meals of takeout, and fast fashion DAILY, phones, grooming, etc and not having savings is another.

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They so expect the very best home and wouldn't be caught dead in a starter home.

itsyourboypookie said:

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It's because they refuse to earn enough to pay cash, or buy where they can afford, or don't know how to buy off market.

I just locked up +~60 acres with a mobile home 30 minutes from Waco for 225k. And a 16 unit apartment complex for the same price in east texas.

Deals are out there for those who are looking.

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You crack me up Pookie. You think these kids know how to get out there and bloodhound a land deal? If their electronic passifier does pop an alert on one of its apps- these kids have no clue it exists.

What you're talking about requires EFFORT. You can't insta-snap-gram a house deal like that. This article is going back to the "we in too much college debt and need free loan forgiveness stuff from Joe" argument.

Government spending is the gas on the fire.

We can. Most just spend way too much money on other things which is fine. Wife and I bought our first home in 2019 at 23. Moving on to our second home now that we have two kids.

It's all about priorities. With two working adults w/out kids you have to be spending wildly to not be able to afford a home. They either spend way to much on traveling/food/cars/ etc. or have unrealistic expectations on heir first home.

Is buying really worth it anymore? After Trumps tax cuts, you need a boat load of deductions to write home interest and taxes off. Doubt if many youngsters are tithing, so hitting the threshold is tough. They are throwing up real nice patio homes around here all rentals. Makes no sense to me to pay $2500 in rent, but to others, makes perfect sense.

There is much less profit for the developer to build affordable homes. First time buyers have limited choices when it comes to neighborhoods they want to live in.

Owlagdad said:

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Is buying really worth it anymore? After Trumps tax cuts, you need a boat load of deductions to write home interest and taxes off. Doubt if many youngsters are tithing, so hitting the threshold is tough. They are throwing up real nice patio homes around here all rentals. Makes no sense to me to pay $2500 in rent, but to others, makes perfect sense.

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My sister-in-law and her husband pay $1800/month for a small 2-BR apartment in Ft Worth. That is more than my mortgage payment on our 3200 sq ft house on 20 acres with a huge barn and spring-fed pond here in east Tennessee. Doesn't make any sense to me, but to each their own I guess.

doubledog said:

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There is much less profit for the developer to build affordable homes. First time buyers have limited choices when it comes to neighborhoods they want to live in.

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And gee, that's the way it was when I was 26 unless you bought a track home in the suburbs.

As said above:
-Overspending on daily stuff
-Being content in dead end jobs
-Lack of work ethic
-Vacations instead of saving
-Expecting to buy a bigger nicer house than a starter home
-Etc.

Proverbs 13:4
The soul of the sluggard craves and gets nothing, while the soul of the diligent is richly supplied.

DargelSkout said:

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-Expecting to buy a bigger nicer house than a starter home

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My wife used to work in new home sales for a builder, and this is exactly what her experience was. Every time. Young couples buying their first home expecting to be able to get WAY more than what they could actually afford in a first home.

In Japan, you just sign a 120 year mortgage and it's all good.

I agree with the article. This is 95% a bad monetary policy issue.

We bought a starter home 10 years ago for $170,000. We bought our next home during COVID for $360,000.

That same starter home would sell for roughly $450,000 today, maybe more. There's absolutely no way we could afford it today if we were 10 years younger. Hell, we'd be straight up struggling with our current salaries. You can't put this all on a lazy generation.

jopatura said:

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We bought a starter home 10 years ago for $170,000. We bought our next home during COVID for $360,000.

That same starter home would sell for roughly $450,000 today, maybe more. There's absolutely no way we could afford it today if we were 10 years younger. Hell, we'd be straight up struggling with our current salaries. You can't put this all on a lazy generation.

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The median household income in Houston is less than $60k. Just like education and medicine government intervention has caused prices to skyrocket.

Artorias said:

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Owlagdad said:

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Is buying really worth it anymore? After Trumps tax cuts, you need a boat load of deductions to write home interest and taxes off. Doubt if many youngsters are tithing, so hitting the threshold is tough. They are throwing up real nice patio homes around here all rentals. Makes no sense to me to pay $2500 in rent, but to others, makes perfect sense.

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My sister-in-law and her husband pay $1800/month for a small 2-BR apartment in Ft Worth. That is more than my mortgage payment on our 3200 sq ft house on 20 acres with a huge barn and spring-fed pond here in east Tennessee. Doesn't make any sense to me, but to each their own I guess.

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My nephew is trying hard to get out of my sister's house in Georgetown. He got himself a good job and is making pretty good money for a 21 year old.

The last apartment he looked at was $1800 for a small apartment in Round Rock. That's a LOT more than my last mortgage. I am trying to get him to buy a house, but I think he is going to blow his money on motorcycle and truck payments.

Madman said:

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jopatura said:

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We bought a starter home 10 years ago for $170,000. We bought our next home during COVID for $360,000.

That same starter home would sell for roughly $450,000 today, maybe more. There's absolutely no way we could afford it today if we were 10 years younger. Hell, we'd be straight up struggling with our current salaries. You can't put this all on a lazy generation.

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The median household income in Houston is less than $60k. Just like education and medicine government intervention has caused prices to skyrocket.

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That $60k figure seems awfully low. That's less than $15/hr for two people working full time.

My son complained about this awhile back.

He was comparing the current value of my first home ($300k) today vs. what I paid in 1994 ($125k). We had definitely gotten very lucky as we got to house sit for a friend of my parents for 9-months rent free so we had 20% for our down payment.

I pointed out to him that he makes almost as much money right now as his mom and I did combined in 1994 and my first home interest rate was 7% for a 15yr note. Doing the math his payment would be about the same % of his salary today as my payment was for just my salary in 1994. This was before the recent rate hikes.

He works in finance and understood the numbers, I think he was just having some sticker shock. That and, around here the last 18-months if you're not ready to buy the day a home lists you're not getting it. It's cooled off some (now it takes a week) but the market has be ridiculous.

jopatura said:

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We bought a starter home 10 years ago for $170,000. We bought our next home during COVID for $360,000.

That same starter home would sell for roughly $450,000 today, maybe more. There's absolutely no way we could afford it today if we were 10 years younger. Hell, we'd be straight up struggling with our current salaries. You can't put this all on a lazy generation.

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It can all be traced back to liberalism and liberal culture. The young adults are facing different realities than their parents as a result.

It's kids wanting a house like their parents immediately and not wanting to settle for a "starter" house -

Years ago Agmom and I took our two Agboys to see the first starter houses we lived in (as newly weds before Agkids) and even showed them the houses that she and I lived in when we were children. The boys could not believe that we actually lived in the houses we lived in. Our very first "house" could fit in the the living room of our current home (not saying that our current house is all that huge, just that we were living the current "Tiny House" craze back in the '70s long, long before there was a "tiny house" craze (and yes we are oldies)).

We stressed hard work, education and good money management as the keys to being successful and moving up in the world - housing included, and so far, thank God they have been successful.

----Add the inflated cost of housing in Texas right now to the desire to have what their parents have and you get kids not being able to afford a house.

This thread reeks of boomer

Lol @ the peepaws suggesting buy less Starbucks. They make memes about you.

Real estate is less affordable because of absurd monetary and fiscal policies. It will become even more so as giant financial institutions buy up supply.

Blaming fellow citizens is exactly what govt wants of you.

There is absolutely truth in OPs post. RE has historically been a store of value and a hedge against inflation. And part of that reason is because of fiat money and Keynesian / monetary theory idiocy. Everyone on here knows this or so I thought.

The ability of a younger single person to buy a house is somewhat separate issue but has been partially impacted by above to some degree depending on where you are looking. If you work in an urban area where most college degrees jobs are, then your ability to buy a home close to said job is probably going to be challenging. I don't think there is any denying that.

And no one is making 1,800 sq ft starter homes in urban areas. Those homes were all last built in the '50s and '60s. My wife's 1,500 sq ft home she bought in the M Streets in Dallas for $250k in 2000 is now a $600k house.

Our current 3,200 sq ft home was worth $200k in 2000. It's now worth $1M.

DargelSkout said:

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As said above:
-Overspending on daily stuff
-Being content in dead end jobs
-Lack of work ethic
-Vacations instead of saving
-Expecting to buy a bigger nicer house than a starter home
-Etc.

Proverbs 13:4
The soul of the sluggard craves and gets nothing, while the soul of the diligent is richly supplied.

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It's not a boomers vs. millennials thread until some lackwit throws a bible verse into their post