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It was actually more expensive for a person to buy a house in 1990 compared to now
08-12-2020, 08:03 AM
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#31
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Originally Posted By Zere0wn⏩
Please post an article not written by a retard"On average, millennials need to save 6.4 years’ worth of their total annual pay to afford a down payment on a home. That’s because today, the median home listing price in the U.S. is $289,000, according to Zillow. Newly constructed houses are even pricier: The median cost of a new home in the U.S. is about $312,800, according to data collected by the U.S. Census Bureau.
In comparison, the average Gen Xer and baby boomer needed to save about 5.6 years’ worth of their overall income for a down payment, which means millennials need to put away about 15% more than previous generations to afford a home.
"
https://www.cnbc.com/2019/09/26/buyi...%20instability.
In comparison, the average Gen Xer and baby boomer needed to save about 5.6 years’ worth of their overall income for a down payment, which means millennials need to put away about 15% more than previous generations to afford a home.
"
https://www.cnbc.com/2019/09/26/buyi...%20instability.
08-12-2020, 08:10 AM
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#32
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Originally Posted By yeshli2nuts⏩
See post #12, that math rustled the fukk out of me TBH...-$289,000 home
- 20% down payment
- $57,800 needed for down payment
- Needing 6.4 years' worth of total annual pay to save that would mean you are making just over $9,000 a year
Fact is, millennials can easily save to buy a house after a few years of renting if they just learned how to make better financial decisions.
- 20% down payment
- $57,800 needed for down payment
- Needing 6.4 years' worth of total annual pay to save that would mean you are making just over $9,000 a year
Fact is, millennials can easily save to buy a house after a few years of renting if they just learned how to make better financial decisions.
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08-12-2020, 08:11 AM
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#33
08-12-2020, 08:13 AM
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#34
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Originally Posted By 78novacaine⏩
maybe they ****ed it and meant savingsThe wording here is throwing me for a fukking loop. It says people are needing to save 6.4 years of their total annual income for a down payment on a $300k home? Assuming 20% down that would put their annual income at <$10k... You would make more than that working 20 hours a week @ $10/hour...
08-12-2020, 08:14 AM
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#35
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Originally Posted By Anachron⏩
still using a financial bloggers stats instead of official metrics I see.Which is the piece of the puzzle all the copers in this thread are missing.
Edit : Buying a median house in the US in 1990 would cost ~$1250/month in today's dollars after 20% down ( assuming 10% interest rate - which would be low for 1990 ).
Buying a median house today costs ~$1100/month after 20% down ( and I used 4% interest rate, which I think is rather chitty ).
And I even rounded down for 1990, and up for today.
Edit : Buying a median house in the US in 1990 would cost ~$1250/month in today's dollars after 20% down ( assuming 10% interest rate - which would be low for 1990 ).
Buying a median house today costs ~$1100/month after 20% down ( and I used 4% interest rate, which I think is rather chitty ).
And I even rounded down for 1990, and up for today.
This is not true.
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08-12-2020, 08:20 AM
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#36
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Originally Posted By davik⏩
Absolutely garbage tier writing then, because there is little to no room for misinterpretation with the words "total annual income" and "overall income" being used in the context presented.maybe they ****ed it and meant savings
I know I'm going off on a tangent here but the fact that this was actually published on a major media outlet rustles the everliving fukk outta my jimmies having basically majored in journalism, lol.
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08-12-2020, 08:23 AM
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08-12-2020, 08:24 AM
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08-12-2020, 08:28 AM
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#39
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Originally Posted By Jasonw1178⏩
This was a good thing. Strict credit helps keep bubbles from forming and popping like they are doing now. Housing prices are just as bad now as they were in 08Down payment is 3% today. Was 20% down. Not to mention interest rates were so much higher.Credit was so much more strict.
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08-12-2020, 08:29 AM
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#40
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The metric of average price in real estate across a country spanning nearly 4 million square miles is quite literally useless
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08-12-2020, 08:30 AM
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#41
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ITT Opie discovers that interest rates today are at all time lows and 30 years ago they were significantly higher.
The current home ownership system is still an elites' scam designed to keep the middle class from achieving generational wealth. That, coupled with the death tax, keep the already rich in control of the country.
It's not right that somebody has to work 30 years to pay for a home, with the majority of that money going into the pockets of wealthy bankers as interest. It's quite a racket.
Set up a bank. Take other peoples' money and pay them 0.5% interest, loan that money to your clients and charge them 6% interest. Whatever is leftover is yours. If you screw up and make bad loans, the taxpayers will bail you out because you're "too big to fail". It's almost impossible not to become rich with a business model like this.
The current home ownership system is still an elites' scam designed to keep the middle class from achieving generational wealth. That, coupled with the death tax, keep the already rich in control of the country.
It's not right that somebody has to work 30 years to pay for a home, with the majority of that money going into the pockets of wealthy bankers as interest. It's quite a racket.
Set up a bank. Take other peoples' money and pay them 0.5% interest, loan that money to your clients and charge them 6% interest. Whatever is leftover is yours. If you screw up and make bad loans, the taxpayers will bail you out because you're "too big to fail". It's almost impossible not to become rich with a business model like this.
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08-12-2020, 08:31 AM
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#42
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Originally Posted By MiscInformed⏩
Not to mention you can loan $10 for every $1 you actually have possession of. Lmao I was like lmaoITT Opie discovers that interest rates today are at all time lows and 30 years ago they were significantly higher.
The current home ownership system is still an elites' scam designed to keep the middle class from achieving generational wealth. That, coupled with the death tax, keep the already rich in control of the country.
It's not right that somebody has to work 30 years to pay for a home, with the majority of that money going into the pockets of wealthy bankers as interest. It's quite a racket.
Set up a bank. Take other peoples' money and pay them 0.5% interest, loan that money to your clients and charge them 6% interest. Whatever is leftover is yours. If you screw up and make bad loans, the taxpayers will bail you out because you're "too big to fail". It's almost impossible not to become rich with a business model like this.
The current home ownership system is still an elites' scam designed to keep the middle class from achieving generational wealth. That, coupled with the death tax, keep the already rich in control of the country.
It's not right that somebody has to work 30 years to pay for a home, with the majority of that money going into the pockets of wealthy bankers as interest. It's quite a racket.
Set up a bank. Take other peoples' money and pay them 0.5% interest, loan that money to your clients and charge them 6% interest. Whatever is leftover is yours. If you screw up and make bad loans, the taxpayers will bail you out because you're "too big to fail". It's almost impossible not to become rich with a business model like this.
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08-12-2020, 08:33 AM
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#43
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Originally Posted By 78novacaine⏩
yeah i looked it up, on google it says average salary is $35k and savings is $8kAbsolutely garbage tier writing then, because there is little to no room for misinterpretation with the words "total annual income" and "overall income" being used in the context presented.
08-12-2020, 08:40 AM
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#44
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Why is everyone assuming 20% down now? So you can avoid PMI, right?
Why is everyone taking about the median house as their first house?
So a good friend of mine just bought a 1br 1a house, about 660sqft for $110K in a nice area in FL, not too far from the beach. She said part of why she got a good price on it was because it sat on the market for a long time because nobody wanted to buy it.
- So you buy your first property, even if you only have 3% and pay PMI. If it's a cheaper house, the PMI will be lower than most of your cell phone bills. From there, you just make a larger payment at least until you get your 20% mark (just don't do FHA because PMI is permenent) and then you can drop PMI. You outgrow the house, down the line you can selll it and start the process over again.
Why is everyone taking about the median house as their first house?
So a good friend of mine just bought a 1br 1a house, about 660sqft for $110K in a nice area in FL, not too far from the beach. She said part of why she got a good price on it was because it sat on the market for a long time because nobody wanted to buy it.
- So you buy your first property, even if you only have 3% and pay PMI. If it's a cheaper house, the PMI will be lower than most of your cell phone bills. From there, you just make a larger payment at least until you get your 20% mark (just don't do FHA because PMI is permenent) and then you can drop PMI. You outgrow the house, down the line you can selll it and start the process over again.
08-12-2020, 08:44 AM
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#45
Originally Posted By 78novacaine⏩
Yea they worded it very poorly. I get the message though: It took _ years for this generation, ___ years for this generation. I assume it's taking into account things like lack of wage growth and more expensive college loans as why it takes longer.The wording here is throwing me for a fukking loop. It says people are needing to save 6.4 years of their total annual income for a down payment on a $300k home? Assuming 20% down that would put their annual income at <$10k... You would make more than that working 20 hours a week @ $10/hour...
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08-12-2020, 08:45 AM
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#46
Originally Posted By Anachron⏩
Step 1) Discover interest ratesWhich is the piece of the puzzle all the copers in this thread are missing.
Edit : Buying a median house in the US in 1990 would cost ~$1250/month in today's dollars after 20% down ( assuming 10% interest rate - which would be low for 1990 ).
Buying a median house today costs ~$1100/month after 20% down ( and I used 4% interest rate, which I think is rather chitty ).
And I even rounded down for 1990, and up for today.
Edit : Buying a median house in the US in 1990 would cost ~$1250/month in today's dollars after 20% down ( assuming 10% interest rate - which would be low for 1990 ).
Buying a median house today costs ~$1100/month after 20% down ( and I used 4% interest rate, which I think is rather chitty ).
And I even rounded down for 1990, and up for today.
Step 2) cherry pick a time with high interest rates
Step 3) Ignore a bunch of things and make a troll thread to get people riled up
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08-12-2020, 08:45 AM
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#47
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Originally Posted By Zere0wn⏩
In addition to comparing interest rates, how do the size and amenities of the home today compare to the home of 30 years ago?"On average, millennials need to save 6.4 years’ worth of their total annual pay to afford a down payment on a home. That’s because today, the median home listing price in the U.S. is $289,000, according to Zillow. Newly constructed houses are even pricier: The median cost of a new home in the U.S. is about $312,800, according to data collected by the U.S. Census Bureau.
In comparison, the average Gen Xer and baby boomer needed to save about 5.6 years’ worth of their overall income for a down payment, which means millennials need to put away about 15% more than previous generations to afford a home.
"
https://www.cnbc.com/2019/09/26/buyi...%20instability.
In comparison, the average Gen Xer and baby boomer needed to save about 5.6 years’ worth of their overall income for a down payment, which means millennials need to put away about 15% more than previous generations to afford a home.
"
https://www.cnbc.com/2019/09/26/buyi...%20instability.
As I've posted in tons of these threads, comparing a home that is 2,080 sqft 3/2 to a 4/3 2,687 sqft (the average new home size in 2015). That's a 30% size increase which I'd expect to reflect in the price.
08-12-2020, 08:48 AM
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#48
Originally Posted By ErnieMccracken⏩
great point. to make enough money to afford a home you have to move to a city where there are no affordable homes.This is the dumbest stat that I hear repeated. It completely ignores job markets and mass migration to cities.
Yes, you can still buy a house in bummfukk nowhere for not that much, but good luck finding an affordable house in any major city that actually has jobs.
Yes, you can still buy a house in bummfukk nowhere for not that much, but good luck finding an affordable house in any major city that actually has jobs.
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08-12-2020, 08:53 AM
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#49
08-12-2020, 08:54 AM
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#50
Originally Posted By soaponarope1⏩
You could make the exact same argument about lot sizes, and get the inverse result. Lots are much smaller now.In addition to comparing interest rates, how do the size and amenities of the home today compare to the home of 30 years ago?
As I've posted in tons of these threads, comparing a home that is 2,080 sqft 3/2 to a 4/3 2,687 sqft (the average new home size in 2015). That's a 30% size increase which I'd expect to reflect in the price.
As I've posted in tons of these threads, comparing a home that is 2,080 sqft 3/2 to a 4/3 2,687 sqft (the average new home size in 2015). That's a 30% size increase which I'd expect to reflect in the price.
There are hardly any low square footage big lot homes available now, so I don't think this really needs much adjusting.
It's also way cheaper to build a larger home now, so why should it cost more for a larger home?
I bought a bigger home than I wanted/needed, because that's all there was. And I'm in one of the smallest homes in the area.
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08-12-2020, 09:28 AM
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#51
08-12-2020, 09:32 AM
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#52
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Originally Posted By soaponarope1⏩
Not only that but consider how houses are coming now. Coming with granite/marble countertops, big spa tubs, double vanities, and a shower in one bathroom. Decked out kitchen with top of the line appliances. Professionally landscaped. You know what you got in 1990? Laminate countertops with HOTPOINT appliances. Bathroom was the size of a coat closet. You had a toilet about touching the tub/shower combo and a single vanity sink that you had just enough room to put your toothbrush on. If you wanted towel hangers you had to buy them yourself. 5x5 back deck. Wall to wall carpeting with the cheapest carpet the builder could find. Builder would throw a few half dead pushes in the front yard and some seed down in the mud and that was your yard. The closets weren't even big enough nor was the hardware strong enough for you to hang yourself.In addition to comparing interest rates, how do the size and amenities of the home today compare to the home of 30 years ago?
As I've posted in tons of these threads, comparing a home that is 2,080 sqft 3/2 to a 4/3 2,687 sqft (the average new home size in 2015). That's a 30% size increase which I'd expect to reflect in the price.
As I've posted in tons of these threads, comparing a home that is 2,080 sqft 3/2 to a 4/3 2,687 sqft (the average new home size in 2015). That's a 30% size increase which I'd expect to reflect in the price.
08-12-2020, 09:35 AM
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#53
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My parents purchased their home in 1992 for $180k, it's now worth $500k
Average income at that time was about 40k annual
Today if I want to buy their USED house, it's $500k, it's nothing special really, just an average home in my area.
Average income is around $70k per year
My scientific data above shows that opie is in fact a *******
Average income at that time was about 40k annual
Today if I want to buy their USED house, it's $500k, it's nothing special really, just an average home in my area.
Average income is around $70k per year
My scientific data above shows that opie is in fact a *******
08-12-2020, 09:41 AM
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#54
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Originally Posted By trufflepigg⏩
In the area. How was your parent's area when they bought it? When I was a kid, moved to a suburb of Atlanta and when I first moved out there, everyone was like "you live in the sticks" but now that area is prime and it's expensive to live there. Where I live now, it's sort of the sticks, but the area is growing. I stay here 10-20 years, I'll move out selling it for probably 3X what I paid for it. What is a bonus is that living in the older neighborhoods, all the houses are different, and we are on larger lots. New neighborhoods, all the houses the same, and you are on tiny lots.My parents purchased their home in 1992 for $180k, it's now worth $500k
Average income at that time was about 40k annual
Today if I want to buy their USED house, it's $500k, it's nothing special really, just an average home in my area.
Average income is around $70k per year
My scientific data above shows that opie is in fact a *******
Average income at that time was about 40k annual
Today if I want to buy their USED house, it's $500k, it's nothing special really, just an average home in my area.
Average income is around $70k per year
My scientific data above shows that opie is in fact a *******
08-12-2020, 09:48 AM
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#55
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Originally Posted By Zere0wn⏩
Well that makes sense, land is one of the few resources that we can't have more of. Of course living in a desired area will cost more and more as time goes on since more people will want to live in said area. However, that can be cancelled out by the fact that many jobs are remote or are becoming remote so there is no reason to live in areas were housing costs 3x anywhere else, unless of course you make the choice to do so. Choices have costs also.You could make the exact same argument about lot sizes, and get the inverse result. Lots are much smaller now.
There are hardly any low square footage big lot homes available now, so I don't think this really needs much adjusting.
It's also way cheaper to build a larger home now, so why should it cost more for a larger home?
I bought a bigger home than I wanted/needed, because that's all there was. And I'm in one of the smallest homes in the area.
There are hardly any low square footage big lot homes available now, so I don't think this really needs much adjusting.
It's also way cheaper to build a larger home now, so why should it cost more for a larger home?
I bought a bigger home than I wanted/needed, because that's all there was. And I'm in one of the smallest homes in the area.
08-12-2020, 09:51 AM
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#56
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All arguments ITT ignore fact that wages were higher back then and have been decreasing due to not increasing in line with inflation
Guys in the 80s doing my job were making the same i make now (still considered middle class+ somehow)
Guys in the 80s doing my job were making the same i make now (still considered middle class+ somehow)
08-12-2020, 09:57 AM
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#57
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Arena rigging
Weve had tiny increases with some contracts but nothing compared to inflating dollar
But its pretty much universal
Weve had tiny increases with some contracts but nothing compared to inflating dollar
But its pretty much universal
08-12-2020, 09:59 AM
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#58
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Why are all these Misc CEO 10k/days bitching about a 400k house being too expensive? That's like a $2300/month mortgage give or take. Everyone is balling with 6 figure incomes, why is this such an issue?
You almost think miscers are frauding or something
You almost think miscers are frauding or something
08-12-2020, 10:07 AM
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#59
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Maybe we have empathy for other people and society as a whole? For me personally i am on a good track, slight delay by covid but i also pay for two cars, sahw, one kid, college loan. Most households make way less than i do, no idea how they will do it
08-12-2020, 10:12 AM
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#60
Originally Posted By arod204⏩
It really doesn't need to be any more complicated than this.Crazy, my father bought his house (1800 square foot) in 99 for 80k while making 50k/year. It is now 2020, and the average house here is $375k and the average house hold income has risen to 70k. Makes sense.
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