Housing is Unaffordable for Young People

[Terrel L. Shields]

From a FB post

 

[glenn walker]

In my area it's not affordable for anyone unless they have a incomes of $200k plus or have tons of cash or a rich Uncle


A starter home $600k and a decent home $900k to $1.3 ...

 

[James Micozzi]

From a FB post
View attachment 97732

So this must be true if it's on Facebook. SMH

 

[timd354]

From a FB post
View attachment 97732

 

[Fernando]

Could be other explanations.
Young people getting married later.
Maybe they rather rent.
I assume other cheaper places have more affordable homes to buy. Then again, young people want to live (rent) in urban areas with social life.

 

[Tom D]

If you consider the monthly cost of a student loan, and the low paying job you can only get. Then there is no money to save for future settlement & down money.
Downtown is where the action is. But you pay more to live in the action.

 

[cpursley]

It's because we don't have any middle housing. Only choices are crappy apartments, oversized high-maintenance McMansions or tents. That and COVID money printer go burr (but it started before that). We have to start building middle housing that means redoing zoning:

Home - Missing Middle Housing

Missing Middle Housing is a transformative concept that highlights the need for diverse, affordable housing choices in sustainable, walkable neighborhoods.

missingmiddlehousing.com

 

[ucbruin]

Thank GOD for the prices in MAGA states....
Otherwise the numbers would be worse....
I think most young folks want to reside in the state they grew up....
Maybe not the same city, but the same state....

 

[timd354]

Could be other explanations.
Young people getting married later.
Maybe they rather rent.
I assume other cheaper places have more affordable homes to buy. Then again, young people want to live (rent) in urban areas with social life.

No, the explanation is that affordability has become much worse over the past several years. We closely track housing price to income ratios and they have become substantially worse in the past several years. Affordability has been an ongoing issue in California (and some other places) for decades but it has gotten even worse there over the past few years and it has also become a serious problem in most places across the U.S.

 

[gregb]

On-going transfer of wealth from boomers down the line is a major way to finance a residence.

The H+T Index provides a more complete measure of affordability.

By taking into account the cost of housing as well as the cost of transportation, H+T provides a more comprehensive understanding of the affordability of place.

htaindex.cnt.org