this post was submitted on 03 Feb 2024
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Americans are living through the toughest housing market in a generation and, for some young people, the quintessential dream of owning a home is slipping away.

Mortgage rates surged in recent years, hitting the highest levels in more than two decades last fall. While rates have come down slightly since then, home prices remain painfully elevated and a limited inventory of housing is still failing to keep up with demand. Such conditions mean that housing has become woefully unaffordable.

Falling mortgage rates in recent weeks have helped, but home prices could remain sticky, according to economists. It’s still a cruddy time to be hunting for a home, but it’s even worse for young, first-time buyers who need to save up for a down payment and build up their credit score during a time when Baby Boomers are refusing to part with their big houses.

The situation isn’t a whole lot better for renters, with rents barely coming down from record highs and half of tenants in that market saying they can’t even afford their payments.

The uneasiness over America’s affordability crisis is captured clearly in surveys and polls, but data that outlines the sentiment specifically among young people is limited.

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[–] [email protected] 73 points 9 months ago (5 children)

Brit here. I’m 43, earning more than I ever have and have basically no hope of ever owning a home.

[–] [email protected] 45 points 9 months ago* (last edited 9 months ago) (2 children)

It's "amusing"[^1] to me that millennials are still considered "the youth" even though the oldest of them are in their 40's. I mean I knew I wasn't ever going to be able to afford a home by the early 2000's.

[^1]: Not amusing at all, really.

[–] [email protected] 21 points 9 months ago

I thought about this recently and realized -

Alot of it is because retirement is effectively a thing of the past. People are working longer and longer, many until they pass. Pushing-40 millennials are still "the youth" because the people calling us that are used to their parents retiring at 55-65 even though they're that age now and NOWHERE close.

Plus, many of us can't "move up" in our careers BECAUSE those older folk aren't retiring anymore and giving up the "good" jobs (those that aren't being eliminated entirely of course.) They call us kids for not having big baller positions that we can't get cause they've held it for 25+ years. Same with housing - we're kids for not buying, but they won't sell and move on like they used to anymore while they fight new development tooth and nail.

TLDR they see 30-40 year Olds as "kids" because they see themselves as 30-40 when comparing their progress to that of their parents generation.

[–] [email protected] 12 points 9 months ago (3 children)

And Canada has been struggling with this for something like a decade. I am not Canadian, just adding to what you are saying in how this is not a problem that is limited to the USA.

[–] [email protected] 15 points 9 months ago (1 children)

Australia has it ridiculously rough right now, too, when it comes to housing. Maybe, just maybe, making it an investment instrument instead of a place to live was a bad idea.

[–] [email protected] 6 points 9 months ago (2 children)

The trolly problem is designed to teach us that no matter what lies in front of us, we have to make choices. So whatever THEY did then, what will WE do now?

The answer ofc is that the USA will elect Donald Trump a second time. I wish I was kidding but... we are starting to see that there's a good chance of that at this point. We might have to find out whether a President can run the country from a jail cell, or if that acts as a "I can get away with rape" card, or what. We've got some tough choices coming our way...

One thing I've been expecting for awhile now to start seeing - just b/c it has happened before, therefore is inevitable to happen again - is corporations making some living arrangements as a "perk" of doing business. Some places do this already, but as the competition drives towards making that an option, corporations could buy out a building for that purpose, then offer an "optional" subsidized living arrangement (as in technically you could turn it down, assuming you had somewhere else to go). That way we, focusing on those in the USA for a moment, would have all of salary, medical care (possibly including preexisting conditions), and then living arrangements all tied up in your workplace. Thus if the boss says suck my... whatever, you do it, b/c you cannot afford to become literally homeless - especially with the pandemic (almost plural at this point) of the unvaccinated greatly increasing the chances of actual death. So that's slavery in the good ole USA, but also a step towards that elsewhere in the rest of the "Western" world as well (and the Eastern world already offers that iirc).

[–] [email protected] 5 points 9 months ago (1 children)

the trolley problem is designed to teach us the nature and limits of our moral framework. the first iteration tests for consequentialism. each iteration after that tests the limits of that consequentialism.

[–] [email protected] 2 points 9 months ago

Ah yes, the REAL (meta-)reason for it - yeah I just said it super poorly there, as in it "is often used for the purpose of illustrating that".

[–] ghostdoggtv 1 points 9 months ago

Lmfao "we all have choices, and here's why Trump is gonna be the next president" welly welly well

[–] [email protected] 4 points 9 months ago (2 children)

We have the same problem as the US. Vote team red team or team blue. We have a team orange in Canada, however they're seemingly unable to find strong leadership.

[–] [email protected] 8 points 9 months ago (1 children)

In the USA we get the option to allow the rich to mostly ignore us while they increase their profits, or for them to flat-out enslave us while they increase their profits. Truly the worst time-line:-(.

[–] [email protected] 6 points 9 months ago (1 children)

German here. Same shit with house prices here. Unbelievable expensive. Netherlands, Denmark, Swiss, France all the same. All out of the cheap money/ interests thanks to Lehmans & broker bros.

The only country where housing is affordable is China. They built way too many apartment buildings. Entire ghost towns. People are fucked there as well though. Standard people lost a lot of money. Crazy world.

[–] [email protected] 3 points 9 months ago

Yup. Globalization and automation are radically altering the state of our world. Worse, most people just ignore that entirely, probably b/c they simply don't know what to do. e.g., Bezos has his cash from destroying many brick-and-morter enterprises, but he has his rocket so he don't seem to care?

The one beacon of hope is ironically perhaps from the EU, maybe especially Germany? But if even you guys cannot - or really I mean will not - do anything about the housing crisis, then I am not sure that it will ever be done.

Meanwhile, people in the USA are just fucked no matter what, especially with Orange Julius (Caesar) coming back for his second term.

[–] [email protected] 1 points 9 months ago (1 children)

We don't have a team orange anymore, they joined team red.

[–] [email protected] 2 points 9 months ago

Because they lack strong leadership

[–] [email protected] 3 points 9 months ago (1 children)

Correction: Parts of Canada. It's a big country with a lot of places in between Vancouver and the GTA.

[–] [email protected] 1 points 9 months ago

I would presume that it would occur mostly in or near the cities, being easier to control that way - is that right?

[–] Potatos_are_not_friends 9 points 9 months ago

Same. 40 yo, nearing the top of my industry in salary, and every time I look at the housing market, it doubles.

[–] oakey66 7 points 9 months ago (1 children)

I was lucky enough to purchase my home before it doubled in value just under 6 years ago. And at a 2 and a quarter % rate. And now I’m locked into this house now because there’s no way I’m jumping out of a rate this low.

[–] [email protected] 3 points 9 months ago

~8 years ago here, the numbers didn't work out for me to drop my rate over covid but I found a house at $75k at 4.125 on a va loan, I recently bumped my payment to pay it off at 50 but my base mortgage is under $500. I'm not going anywhere.

[–] [email protected] 4 points 9 months ago

And if you do, the market is just gonna crash and you’ll be stuck with that inflated mortgage and unable to move physically or financially.