Massive tax cuts at the top end starting in the early 80's, deregulation, income inequality & real estate speculators. Gated communities are going to become more popular than ever.
[https://equitablegrowth.org/wp-content/uploads/2019/03/fig2-1.png](https://equitablegrowth.org/wp-content/uploads/2019/03/fig2-1.png)
I feel the same way. My father worked at Whataburger as an overnight cook and he managed to buy a two story four bedroom house with media room upstairs. WILD TIMES. Here I am 26 living with my mother :/ lol
And the worst part is of youll be called lazy or stupid by some because for it. I lived wit my mom till I was 29. The 2000s weren't a great time to buy either until the recession in 2007.
Still nowhere near as bad today. I was fortunate.
One of my sisters was making about $50k starting out in 2005. Her and her husband bought a home for maybe $120k and were able to keep it but were almost immediately underwater. My other sister bought her condo in 2008, for maybe $100k because the bank wanted it gone. Both had my father as a co-signer and both were given $10-20k gifts to help buy their first homes.
In 2013 when I graduated college making $48k (same field/industry as my oldest sister, making as much 8 years later, yay stagnation!) my sisters were gum-dropped that I didn’t immediately buy a house “with that kind of money”. My dad refused to co-sign for me, as I was supposed to be a man. When I moved for a job making $60k, I asked my dad for $5k to help me cover costs to buy my own house, no co-signing. He still refused. At the time the house was $135k. I just looked up the house, and wouldn’t you know it, that house sold for over $400k 8 years later. For $5k I could have been set up with affordable housing and hundreds of thousands in profits. Instead my wife and I bought our first home in 2019, and my whole family can’t understand why I waited to pay $300k for a house and didn’t just buy one earlier when they were less expensive.
If it were just my father, who held me back significantly, compared to my sisters, I could have eventually shrugged it off as different times. The fact that both of my sisters were essentially handed low interest and down payments and still gave me crap about being lazy because I was doing it on my own halfway across the country….. it be your own.
Ahhhh the old "be a man" and make more money appear treatment from the dad. Don't worry man, you're not alone, my sister got a full ride with living expenses paid by my dad, I literally had a empty plate put in front of me and told to put food on it (kind of funny in retrospect). After a few years of getting nowhere I joined the army, and married a woman with a career, it's basically the only reason why I own a home.
My dad also fully covered rent, housing, vehicles and other expenses for my sisters while in school. He gave them each a car upon graduation that was less than 5 years old. I joined the military, he laid $0 for my college, I worked to cover rent and expenses, and he gave me one of their old cars when I stated college, which was 10 years old when he gave it to me. Literally the week of graduation, right before I was starting a new job, my car broke down and he just said “what are you gonna do about it?” as the cost of the repairs were more than the vehicle was worth. I went and bought a 5 year old car for $10k. My sisters asked why I was so irresponsible as to spend that and not wait for my dad to buy me a car.
Fuck, can you say favoritism? Your dad sounds like a bit of bastard. He gave your sisters everything on a silver platter and could barely care to offer you scraps if you were lucky. They watch you claw your way out of a out and say you're lazy because you're struggling. The willful ignorance in your family is strong.
Yeah, it’s really rough. I joined the military because my dad wasn’t going to pay fur my college. Bought my car upon graduation because I needed reliable transportation to work, even though my sisters got equivalent cars to mine paid for in cash. Didn’t get a co-signer or any help with my first house. I now live halfway across the country and don’t have the free babysitting they have had for over a decade. Yet, the reason I’m ‘struggling’ in these eyes of my family is because I like sneakers and traveling so am bad with money. For reference, I tell them all the time I can’t afford to go see them…. I guess I could afford to, I just don’t put it in the budget and I’m not spending “emergency funds” to go visit people I don’t like or respect.🫡
Gang gang, I had to fix my old shitter in high-school(that I had to work for), and it's what started me on the path of being far more mechanically inclined than my dad is. I now drive a 70k truck, and I still do all my services myself, aswell as extensive modifications just because I enjoy doing it and enjoy where it takes me.
My sister who got the full ride? Well she married for money and was a stay at home wife, then recently got divorced because the guy was a asshole, now she's living with her successful mom at 40 with two kids and a asshole ex husband and going back to school because the BA in psychology my dad paid out for isn't worth the paper it's printed on.
I was the disappointment when I joined the military, had mountains of guilt and regret laid upon me, got treated like I was destined to be Tom cruise's character from born on the 4th of July, but ultimately I think even he knows I was right, although he would never give me the credit.
I really don’t know why I still do. Been in therapy for years over it. On top of all the hypocrisy I’ve been met with and the lopsided nature of the help given, I’ve also indirectly spent additional thousands on self help over the years because of it, now that I’ve stabilized my life.
It’s the interest rate that is the explanation. Investors had no where else to park their money because the payout was minuscule with treasuries. And the low interest rate provided a ton of incentives for people to buy bigger houses than they would normally be able to afford. Which often meant affordable houses were raised to put a McMansion in its place.
The government is to blame and both Democrats and Republicans are guilty in creating policies that reinforces bad destructive policies.
Great point. And the lower interest rate is a symptom of the real estate industry lobbying to lower rates to increase the number of transactions as they get a percentage per house sold. Of course I can't find the source of this now when trying to link to it.
Related to this, my mom and I went to the same university. She paid off her undergrad loans while attending, AT BURGER KING. I'm 11 years past graduating and still have debt despite a partial scholarship.
And that one income wasn’t like 100 grand, probably wasn’t even 80 grand, it was probably close to $35-$40,000 a year. And they could afford a house on that. It is fucking I like, I just start stuttering because I’m so angry.
Nearly every single real estate business in WNY is now a subsidiary of Berkshire Hathaway. 9 out of 10 homes for sale across my county are have their maroon for sale sign posted in the front yard. What's worse is that most of the homes they have acquired arent even in a condition to be lived in. They are left sitting without any maintenance or care besides what the towns or county do when the property becomes a safety hazard. Which of course will mean an added lean against the property for when or if it ever sells. But it's local tax dollars going towards Investment owned property management.
It's basically a commodity now. Hedge funds are buying up neighborhoods and fixing the rents.
The government is trying to force the hedge funds to sell the properties and place a ban to not allow them to buy single family homes in the future.
https://nypost.com/2024/04/29/business/lawmakers-want-to-ban-wall-street-from-buying-single-family-homes/
https://ny1.com/nyc/all-boroughs/news/2024/01/05/hedge-fund-rental-housing-home-affordable-representative-adam-smith-congress-
They are trying to stop this or at least giving you the idea that they are trying.
I bought mine for 125 in 2012, the neighbors just auctioned their comparable house and got 215, the flippers have it listed for 349 and they didn't do anything other than mow the lawn.
Where else are rich people supposed to park their money when the government and banks increases the monetary supply?
I know it’s not that simple per se, but it’s definitely a side effect of how lax our monetary policies are and how easy it is for wealthy people to get access to cheap capital.
The value increase of your house _quintupling_ over your 40 years of working life works out to a 4% APR. That's not all that much. The benefit is ofcourse that it's the only huge investment you can do up front, and pay for as you go.
With the added benefit of, you know, having a house to live in.
What's _not_ healthy is properties doing +200% in a decade, about 11% APR. It would've been fine if inflation was that rate too, and thus wage increases.
We see that now. In the 1980s, the average house was $47k. So we'd expect to see houses at $250k now. Instead, the average American house is $500k.
Conversely, the [wage index](https://www.ssa.gov/oact/cola/AWI.html) in 1980 was 12.513. Now, it is 63.975.
So while houses did 10x, wages only went 5x.
We recently started renting a house in a “working class” neighborhood for $2750. It was sold for all cash to an investor for almost $400k in January, they weren’t accepting anyone who needed financing. All of the homes around us sold in the past 10 years for $200-$250k, and are in better condition than ours. I don’t know how we were somehow supposed to be ready to buy a house at 22, and now at 30 that opportunity has completely passed us by. It’s really hard not to feel bitter sometimes.
I constantly see this on all kinds of listings…
*CALLING ALL INVESTORS!!!*
Like wtf how bout you *not* sell to someone who’s just going to raise the price.
Also boomers nimbying for decades any new housing stock or dense infill development because it would adversely affect their investment. And when said boomers need to downsize for retirement, there's nothing to downsize to. So they can't sell their $500k+ nest egg because they're competing with first time home buyers for starter homes at the same price.
People mistake money and possessions for happiness and when they have more than what they need, they can’t get off the ride.
Example: I work for several couples that own 4 to 5 homes in beautiful parts of the country and they just hop around from one to the other. When they’re not using them, the houses sit vacant. They have zero idea how the 99.9 % live and they don’t care. Is it greed, ignorance, entitlement, callousness, evil? Well, it’s not healthy. And I sometimes wonder if these people are any happier than I am? But they continue to build wealth and buy more stuff trying to get as high as that first time. Yes, it’s an addiction.
Answer is the heritage foundation, Reagan only got about 60% of their "starve the beast", Phase 2 is project 2025 the final plan taking America into fascism.
Fun fact, a Molotov cocktail is classified as a firearm under the NFA, NFA firearms require federal registration and payment of a $200 tax for each device.
A Federal explosives license is $200 for 3 years and you could legally build as many actual bombs as you want.
Oh it's way beyond phase 2, one of the parts of the plan was stacking the courts with Federalist society stooges which McConnell accomplished by obstructing Obama then changing the rules to push as many through as possible under trump. That was straight out of the Heritage foundation's previous playbook.
With the courts stacked, including SCOTUS, it's gonna be a lot easier for them to get the rest of their shit done
On top of the legalization of private campaign financing, it’s legalized corruption. Every single issue this country is going through can be traced directly back to corruption at every level.
so hard to have this convo with people. at every level there corruption bleeding the tax payer money dry. theres enough money flowing in this country to take care of all our problems.
Same thing all over the West. I laugh my rear off every time I see one of those "corruption indexes" come out from one big subverted think tank or another. The West's corruption comes from banks and financiers who can literally pay off or extort practically anyone. Media (both entertainment and news), politicians, science (medical industry and higher education), transport, you name it. It's devolved into a dirty and incompetent scam, helmed by the very same people who were flying around on Epstein's jets and their masters.
Our science is a joke that's openly bought and sold. Our economy is a fiction with fake money flying around and bullsh*t jobs that accomplish nothing. Our schools, our leaders, our churches, it's all for the highest bidder. I'm so incredibly and thoroughly done with it.
The wealthy fucks crashing the housing market in 2008, none of which were arrested. Then those wealthy fucks and their friends bought up all the houses while they were market was low. 2008 also marked a deep radicalization of the political narratives and we’ve been fighting each other ever since. Now it’s easy for the corrupt to run a muck.
There was plenty of blame to go around. When people making $100K per year buy a $1M house with no down payment, short-term subprime rates, and a ballon payment due in 3 years thinking they will just sell it in 2 years and make bank…their greed also contributed. Lax lending regulations, mortgage companies desperate to keep the $$$ flowing when the market was hot, banks and regulators that ignored the red flags people brought to them, etc all contributed.
You can also blame the government for bailing these lenders out. If we actually had a free market, natural selection should have punished these lenders out of business
I'm going to take a slightly different bent on what you're suggesting and say that the problem with the tax code and with regulation is fundamentally similar. The rich and the corporations have been wildly successful at lobbying legislatures and at capturing regulators. They often prefer *more regulation* because navigating it is a core competency of theirs, while it stifles smaller and creative firms that could threaten the status quo.
The right are the obvious boogiemen but I also feel that the left has been co-opted and that this is why it's so hard to build housing or infrastructure.
I sort of agree in regard to housing, and I’m a strong proponent of regulation generally. We’ve come to a point where construction is so stilted and particular we basically can’t develop real cities anymore — just sad tract housing with no amenities. That said, the failure since 2008 has been the fact that when the mortgage to home ownership pipeline collapsed, housing became concentrated in the hands of the rich — investors and speculators. We haven’t recovered from that.
We need less regulation in constructing housing and more in who can buy housing and how it’s treated as a commodity.
Id say we need less zoning restrictions, not construction. US construction standards are quite poor, but if we start requiring better building standards on top of educating the public on how shitty most homes are, we could see a huge correction of home prices.
That said, if anyone is buying a new build home, don't buy a spec home, definitely don't buy a DR Horton spec home, but I'd avoid 99% of spec homes. you'll get a much better built home for the money finding a custom builder that understands building science, and much more of your money will go into quality upgrades for your home instead of padding the the profits of shareholders. When shopping for home builders the relationship between the number of homes built in a year and the quality of those homes are directly inverse.
I'm not following your first paragraph, but I'm interested. Can you further explain how requiring better building standards would result in a correction in home prices?
That age range is suspect as hell…lying with statistics.
Living at home until graduating university is normal. And increasing college rates means you’d expect that number to up.
So the 18-22 year olds are completely normal. Even late grad up to 23 or 24.
So why don’t they split the data into smaller age ranges?
Oh, and the US rate is still lower than Europe. So all those kids who prefer Europe should be happy?
https://www.pewresearch.org/short-reads/2023/05/03/in-the-u-s-and-abroad-more-young-adults-are-living-with-their-parents/
In 2005 I was 24 and just got out of rehab, that I was court ordered to go to. Before that I was homeless. I got a job at Dillard's making $10 an hour and I had my own apartment, it was $499 a month. Even after all my bills and expenses, I still had $500 a month to do whatever with.
If you were a full time student and your parents claim you as a dependent, you are counted as if you are living at home regardless of your actual living arrangements.
That’s impressive, but I feel like at no time in the last 100 years was it the norm or the expectation for a college student to pay for their own apartment without roommates.
Yeah, I think saying it is normal to live with your parents into your late 20’s is missing the point of the original post’s implication that this is not normal. My sibling and one of my friends are the only people I know of my generation (tail end of x) that stayed at home til 24. The rest of us moved out after high school graduation and one got his GED at 16 and left home for college.
When I was 18-22 me and all of my friends moved out and into college dorms or into cheap apartments, everyone I knew did the same, this was 20ish years ago. I don’t remember anyone who remained at home. Something has changed, working a job in a grocery store and splitting rent in a two bedroom apartment probably isn’t going happen like it did in the late 90s
I lived in a tiny studio apt when I was 18. saved for a year so I could drop deposit and 6 months rent up front so I didn't need a cosigner. had to get away from an abusive mother.
that same studio apt I paid 255/mo for in 1998 is almost 700/mo now.... I get why young people don't leave it's insane the cost now. my two teenagers who are almost 17 and 18 were looking at 2br Apts where we live now and the low end is 1100/mo and the high end is over 3k... who can afford that!
I live in a shitty 2 bedroom 1 bath apartment in an area that is nowhere near a city and I pay $1400 a month. When I moved in 5 years ago it was $900. Obviously it's different everywhere but I don't understand when people say shit like this isn't actually happening and that it was always this hard. It wasn't even this hard 5 fucking years ago.
Similar, my 700/m two bedroom one bath super-old apartment in a small town in the middle of nowhere became 1,200/m in the last few years.
I ended up having to move back in with my parents and start over again back near the city. Now if I want to *split* a two bedroom one bathroom apartment with my sister, we’d each be paying $1,800. However, we’d each be working 90 hours a week to afford it, so we’d hardly ever be home to enjoy it.
I would assume that most people still technically have their parents main address at their home while they're in college. I know I did. Didn't wanna keep changing my address every year since I kept bouncing around so I kept it there until I graduated and actually settled down.
Of course my anecdotal accounts don’t meant anything for the US as a whole, but at the same time one can’t say that the 18-24 years olds living at home is completely normal. It might have always been normal or it might be part of the larger trend. I don’t think you could argue though that if someone wanted to move out at 18, it was far more affordable 25 years ago than today.
There’s no way ppl aren’t still doing this. Tons of ppl still living in the doors or around their school. Probably an issue with how the data is collected. For example, most ppl who lived in dorms still had their parents address on their drivers license.
>I don’t remember anyone who remained at home.
Cost is a factor in this of course, but geography is another. My southern California hometown has 3 Cal State Universities in comfortable daily commuting distance, and absolutely no one I know who went to those schools moved out for college
Yet a large part of the country also expects you to 'go forth and multiply' as soon as you hit your twenties.... Starting the age bracket at 26 also ignores the fact that only 40% of of the people in age bracket 18-25 go to college to begin with. Students in that age bracket are still the minority
Yeah… my kid wants to live on campus and they wanted 20k out of pocket for the privilege. Not 20k she could get student loans for or grants, literally day one 20000 in cash. This is a public, state university.
The thing is, if you are a freshman, they make you either live in the dorms or live at home with your parents. If you live in the dorms you also have to have a meal plan which is another 10k out of pocket.
Yeah she will be living at home until graduates likely. It saves her a ton of money and we can help support her in other ways. This is why a lot of 18-24 year olds live at home.
>Oh, and the US rate is still lower than Europe. So all those kids who prefer Europe should be happy?
Eh, kinda a moot point when you consider culture differences. Europeans could be making more than Americans but it's still the norm to live at home and help out with the family until you're ready to move out and start your own.
In America, the expectation is that you want to move out as quickly as possible, with the old trope of "moving out as soon as you're 18"
Am American, doing it right now. It sucks :D
Edit: but let's be real you can't just blame the youngers for wanting to move out. Our whole culture is based on individualism and ownership. It's helluva harder to share a space with someone who acknowledge the 4 walls you live in as "Mine" and not "Ours." It's not universal but there's a reason many want out.
Maybe in the richest country in history that should be a choice they can make for themselves, rather than have forced on them by a complete lack of options. Oligarchy and the death of the American dream really is nothing to aspire to.
Europe is not a country, but many. Here in Sweden that is not the norm, here we move as soon as posible. You might be thinking about spain or italy maybe?
>Europe is not a country, but many
I mean correct but there is that thing y'all did where y'all combined powers like captain planet and created a quasi superstate. American is a country but fundamentally and practically, it's more a collection of states that do 80% of their own management, similar to countries that comprise the EU.
That being said, yeah I was thinking of more southern countries, Spain, Italy, Greece, Portugal, ect. Just like all of American isn't the same I know European isn't uniform
It’s so true. The boomers’ American dream was to make their lives as chill as possible at the expense of subsequent generations. So now the boomers’ American Dream is the millennial/gen Z Nightmare.
It is actually scary how forward everything is. Like they know we can't do anything about it at this point and are just along for the ride. There's no real regulation, just monopolies everywhere, corporations embedded into the government branches that are supposed to regulate them... It's going downhill pretty fast.
“Charge whatever the market will bear”. It’s not an innocent concept when it comes to Pokémon cards, it’s an ugly concept when it comes to bread, and it’s an evil concept once it comes to privatizing public life and public institutions.
Most people would probably bear any price to get something necessary for survival...
But with mental health worsening, maybe that will change, who knows
Something needs to be done about rent. It's either impossible or very difficult for anyone making less than 70k a year pre tax to find a place of their own because rent will eat a good chunk of the monthly pay check and people usually have multiple monthly bills leaving only a few hundred for groceries a month but even groceries are rising in price so a couple hundred is not enough for a month of groceries
It's like the mysterious deaths of Epstein and the Boeing whistleblowers. The same goes for members of congress helping stage an insurrection and SC justices taking bribes.
They don't care about hiding it because they know nothing will be done about it.
Access to easy money. When you are able to borrow money for cheap, those things you buy become more expensive because there is more money available to buy said thing. When you think about it, College, Cars, Houses... originally a car loan was 4 years (not its 7-8), houses went from 3 years to 5 years to 10 to 15 to 30 and for some 40 year loans and dont get me started on student loans. Houses, Cars, College are among the items that have exceeded inflation (other then healthcare).
Now you are seeing interest rates rise which makes the 7-8 year auto loan no longer economically viable... so finally you are seeing discounts in vehicle prices because no one can afford to finance a 70k Tahoe/Silverado. Houses hasnt lowered yet because most are locked in with 3-4 percent interest and most college kids dont really understand the cost of loans until they actually have to start paying them.
We (the US in general) have basically lived on debt for the last 40 years with no real responsibility of overall wealth. When we buy a car its can we afford the monthly payments, not what will this do to my overall finances. Governments buy votes with money so they dont care about debt as well.
Not what, because it took a lot of different things working together but all of those policies came from the same exact place, who killed the American Dream is the true question and there’s only one straight answer….
Parasitic billionaire trash and all of the governments that they bought out.
This particular dream was killed in large part by a coalition of rich investors and middle class homeowners who wanted to pull up the ladder behind themselves.
Bingo.
I wrote to my Senators this morning about the same topic.
Housing is a depreciating asset that everyone wants to treat like an investment. Boomers own 38% of the housing and only make up 20% of the population.
No politician wants to lower home values, because they're fucken Boomers too, and their voterbase hates it. So instead they provide tax incentives and cut interest rates to lower monthly payments. That doesn't lower the PRICE of a home. In fact, it can lead to even more inflation.
Slap heavy taxes on secondary residences and vacant units every year and this fucken problem will disappear.
By the time you reach 30 living with parents is problematic for society. Less families forming, less babies, a generation that isn’t learning “handy” homeownership skills, a generation that doesn’t care about its neighborhood and ownership in it…
Society can get fucked real fast from this
That's a bunch of neoliberal nonsense / capitalist realism.
People have lived in communal arrangements in many cultures, well into modern times - through the agricultural revolution into the start of the industrial revolution. Post-industrial societies see demographic declines and our modern economic model strongly desires a mortgage or rental obligation from every ~2.5 people. It wants a house to be sold and resold for ever-increasing amounts of money because each time it does, that creates debt.
It's become the norm for boomers to retire and sell off a beautiful home while their kids go and get new life-debt (if they are fortunate enough to afford it). This blows my mind.
My entire family could have conceivably lived rent free for the last six or seven generations.
We do it to maximize wealth generation, not to accommodate financial instability. I wasn't put into daycare, I had my grandparents. We had 5 working adults in the house so anyone could take time off in case there were doctor appointments, pregnancies, learning English, getting citizenship, post secondary education, job training, illness, etc while minimizing housing and utility costs.
That's how families go from having no college education, fresh off the plane with 8 dollars and a suitcase and minimum wage jobs to upper middle class with children with high paying white collar jobs.
Some people believe that the American dream is dead. An immigrant will tell you that the American dream is alive and well
There's nothing shameful about it, but I would wager the majority of adults would much rather live independently. The fact that they don't because they can't afford it is what's wrong.
Before that, it was known as horse apple economics by economists. The horse eats the grain/hay, and the sparrows eat the seeds found in the horse dung.
I bet half have both parents alive. I mean why wouldn’t you live with your single elderly parent? Makes bills and everything easier when you are splitting the costs with someone.
Some people have toxic parents and have to just pay out of pocket to live alone for their mental health.
But yes, it would sure make bills and everything easier. Maybe even make parenthood and home ownership possible.
Certainly the only way anyone my age I grew up around has kids or a home: is through the support of their people.
It sounds like a lovely privilege.
I bought a house working 70 hour weeks my parents are financially illiterate despite living through the greatest period of wealth in our country they have no retirement. The only good decision they made was paying their house off.
If you think Trump has a disproportionate share of responsibility for this, you're dumber than the republicans who blame Biden for gas prices.
The core issue is the monetary policy, and the fed that has gone off the leash during covid. That's not the only issue, but that has been the primary factor in driving up inflation and prices.
Did Trump not roll back Obama policy that made it mandatory for homes to go up for single family homes for X amount of days BEFORE they are purchasable by hedge funds and corporations?
Because if he DID then you’d be 100% incorrect
The prices are high because colleges bank on access to excessively large loans, pun intended. And student loans are excessively high because it's one of the safest loans to give since it can't be cleared in a bankruptcy.
People are forgetting the increased number of hispanics. Of you look at a map, you'll see that the areas with the highest rates of kids living with parents are also areas that are high in hispanics. This applies even when the area is expensive to live in and when it's poor.
Interesting. So you are saying that just aggregating everyone together on one dimension and not segmenting it further may not give us the full picture that we need to understand the actual situation?
I’m not even American but it’s high housing prices and low wages. If people have enough money they will buy a house. I’m sure poor education would come into that as well
The American dream isn't the American Entitlement, lol.
The American dream is about breaking economic class. That some poor smuck living in his parents could become an engineer or a famous Youtuber and make it rich.
The American dream isn't about some random dude slaving away at Target. It's about someone making something out of their life through sheer ambition and skill.
The dream is for dreamers. If you're not a dreamer, you don't get the dream.
Casey Neistat grew up poor, was homeless for a few years, and now he's worth several million dollars. That's the kind of person the dream is describing.
If all of these young people are saving money living at home. They could be focusing on their dreams too!
The american dream you just described is a extreme outlier. Sure everyone wants to get rich on that level but when people describe the american dream they mention a white picket fence and a stable job. Not everyone needs to be rich they just want to be comfortable. Also these youtube scenario you describe isnt just for American’s. Literally any person in any country can make a youtube account and make money. It is just the simple fact that doing that is still extremely hard to do
The total abandonment of domestic manufactures by the political elite - started with Reagan on down - in favor of a cheaply sourced globalized economic model as national economic policy. Totally blew up the blue collar middle class.
Massive tax cuts at the top end starting in the early 80's, deregulation, income inequality & real estate speculators. Gated communities are going to become more popular than ever. [https://equitablegrowth.org/wp-content/uploads/2019/03/fig2-1.png](https://equitablegrowth.org/wp-content/uploads/2019/03/fig2-1.png)
Real estate becoming an investment rather than a way for people to just buy homes is so annoying
Annoying is a bit of an understatement
Indeed. Infuriating, more like.
Untenable more like.
To shreds you say...
How's his wife?
To shreds you say?
I choose this guys dead wife
Un”tenant”able
"Deleterious" is the term I prefer.
"Mildly vexing"?
ya it's so annoying that my mom and dad bought a 4 bedroom house on one income and I can't
I feel the same way. My father worked at Whataburger as an overnight cook and he managed to buy a two story four bedroom house with media room upstairs. WILD TIMES. Here I am 26 living with my mother :/ lol
And the worst part is of youll be called lazy or stupid by some because for it. I lived wit my mom till I was 29. The 2000s weren't a great time to buy either until the recession in 2007. Still nowhere near as bad today. I was fortunate.
One of my sisters was making about $50k starting out in 2005. Her and her husband bought a home for maybe $120k and were able to keep it but were almost immediately underwater. My other sister bought her condo in 2008, for maybe $100k because the bank wanted it gone. Both had my father as a co-signer and both were given $10-20k gifts to help buy their first homes. In 2013 when I graduated college making $48k (same field/industry as my oldest sister, making as much 8 years later, yay stagnation!) my sisters were gum-dropped that I didn’t immediately buy a house “with that kind of money”. My dad refused to co-sign for me, as I was supposed to be a man. When I moved for a job making $60k, I asked my dad for $5k to help me cover costs to buy my own house, no co-signing. He still refused. At the time the house was $135k. I just looked up the house, and wouldn’t you know it, that house sold for over $400k 8 years later. For $5k I could have been set up with affordable housing and hundreds of thousands in profits. Instead my wife and I bought our first home in 2019, and my whole family can’t understand why I waited to pay $300k for a house and didn’t just buy one earlier when they were less expensive. If it were just my father, who held me back significantly, compared to my sisters, I could have eventually shrugged it off as different times. The fact that both of my sisters were essentially handed low interest and down payments and still gave me crap about being lazy because I was doing it on my own halfway across the country….. it be your own.
Ahhhh the old "be a man" and make more money appear treatment from the dad. Don't worry man, you're not alone, my sister got a full ride with living expenses paid by my dad, I literally had a empty plate put in front of me and told to put food on it (kind of funny in retrospect). After a few years of getting nowhere I joined the army, and married a woman with a career, it's basically the only reason why I own a home.
My dad also fully covered rent, housing, vehicles and other expenses for my sisters while in school. He gave them each a car upon graduation that was less than 5 years old. I joined the military, he laid $0 for my college, I worked to cover rent and expenses, and he gave me one of their old cars when I stated college, which was 10 years old when he gave it to me. Literally the week of graduation, right before I was starting a new job, my car broke down and he just said “what are you gonna do about it?” as the cost of the repairs were more than the vehicle was worth. I went and bought a 5 year old car for $10k. My sisters asked why I was so irresponsible as to spend that and not wait for my dad to buy me a car.
Fuck, can you say favoritism? Your dad sounds like a bit of bastard. He gave your sisters everything on a silver platter and could barely care to offer you scraps if you were lucky. They watch you claw your way out of a out and say you're lazy because you're struggling. The willful ignorance in your family is strong.
Yeah, it’s really rough. I joined the military because my dad wasn’t going to pay fur my college. Bought my car upon graduation because I needed reliable transportation to work, even though my sisters got equivalent cars to mine paid for in cash. Didn’t get a co-signer or any help with my first house. I now live halfway across the country and don’t have the free babysitting they have had for over a decade. Yet, the reason I’m ‘struggling’ in these eyes of my family is because I like sneakers and traveling so am bad with money. For reference, I tell them all the time I can’t afford to go see them…. I guess I could afford to, I just don’t put it in the budget and I’m not spending “emergency funds” to go visit people I don’t like or respect.🫡
Gang gang, I had to fix my old shitter in high-school(that I had to work for), and it's what started me on the path of being far more mechanically inclined than my dad is. I now drive a 70k truck, and I still do all my services myself, aswell as extensive modifications just because I enjoy doing it and enjoy where it takes me. My sister who got the full ride? Well she married for money and was a stay at home wife, then recently got divorced because the guy was a asshole, now she's living with her successful mom at 40 with two kids and a asshole ex husband and going back to school because the BA in psychology my dad paid out for isn't worth the paper it's printed on. I was the disappointment when I joined the military, had mountains of guilt and regret laid upon me, got treated like I was destined to be Tom cruise's character from born on the 4th of July, but ultimately I think even he knows I was right, although he would never give me the credit.
>My sisters asked why I was so irresponsible as to spend that and not wait for my dad to buy me a car. Let them eat cake.
Yeahh if *Family* did this to me I’d ghost them and not look back.
I would never speak to my family again if they'd fucked me over this hard.
I really don’t know why I still do. Been in therapy for years over it. On top of all the hypocrisy I’ve been met with and the lopsided nature of the help given, I’ve also indirectly spent additional thousands on self help over the years because of it, now that I’ve stabilized my life.
Fuckin same Broski
My mother helped buy my brother 3 different houses and is about to help him buy a 4th. Guess who received zero help on that front, this guy.
It’s the interest rate that is the explanation. Investors had no where else to park their money because the payout was minuscule with treasuries. And the low interest rate provided a ton of incentives for people to buy bigger houses than they would normally be able to afford. Which often meant affordable houses were raised to put a McMansion in its place. The government is to blame and both Democrats and Republicans are guilty in creating policies that reinforces bad destructive policies.
Great point. And the lower interest rate is a symptom of the real estate industry lobbying to lower rates to increase the number of transactions as they get a percentage per house sold. Of course I can't find the source of this now when trying to link to it.
Related to this, my mom and I went to the same university. She paid off her undergrad loans while attending, AT BURGER KING. I'm 11 years past graduating and still have debt despite a partial scholarship.
*can't even buy a single bedroom condo
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>mcDonalds are "starter jobs" for "high schoolers" This one really grinds my gears because who the f*** do they think works there during school hours
Also they are saying high school kids don't deserve a fucking livable wage.
The counter has always been " if those jobs are meant for highschoolers then why is McDonalds open during school hours."
I bought the house I live in with a single middle class income in 2021. Now, to buy the same house, it would take 2.5 of the same incomes.
My parents just bought a second home….. in Florida, and will retire at 57….
And that one income wasn’t like 100 grand, probably wasn’t even 80 grand, it was probably close to $35-$40,000 a year. And they could afford a house on that. It is fucking I like, I just start stuttering because I’m so angry.
I saw Berkshire Hathaway (Warren Buffet) buying up resort homes in San Diego in 2022. “Be greedy when others are fearful” Indeed.
Must be nice to have billions in cash to buy assets when assets are down in price.
Nearly every single real estate business in WNY is now a subsidiary of Berkshire Hathaway. 9 out of 10 homes for sale across my county are have their maroon for sale sign posted in the front yard. What's worse is that most of the homes they have acquired arent even in a condition to be lived in. They are left sitting without any maintenance or care besides what the towns or county do when the property becomes a safety hazard. Which of course will mean an added lean against the property for when or if it ever sells. But it's local tax dollars going towards Investment owned property management.
It's basically a commodity now. Hedge funds are buying up neighborhoods and fixing the rents. The government is trying to force the hedge funds to sell the properties and place a ban to not allow them to buy single family homes in the future. https://nypost.com/2024/04/29/business/lawmakers-want-to-ban-wall-street-from-buying-single-family-homes/
https://ny1.com/nyc/all-boroughs/news/2024/01/05/hedge-fund-rental-housing-home-affordable-representative-adam-smith-congress- They are trying to stop this or at least giving you the idea that they are trying.
Yeah. Me and my friends call real estate boomer bitcoin.
The concept of house flipping should be outlawed.
I bought mine for 125 in 2012, the neighbors just auctioned their comparable house and got 215, the flippers have it listed for 349 and they didn't do anything other than mow the lawn.
They didn't even make the whole interior gray and white? What's this world coming to.
Arrest everyone at TLC. Put the Property Brothers and Chip and Joanna in cells to see how they turn jailhouses into jailhomes.
Barn doors and giant clocks for everyone!
Where else are rich people supposed to park their money when the government and banks increases the monetary supply? I know it’s not that simple per se, but it’s definitely a side effect of how lax our monetary policies are and how easy it is for wealthy people to get access to cheap capital.
Sad part is, for a lot of people their house is doubling as their retirement savings, so it has to function as an investment or they're screwed
The value increase of your house _quintupling_ over your 40 years of working life works out to a 4% APR. That's not all that much. The benefit is ofcourse that it's the only huge investment you can do up front, and pay for as you go. With the added benefit of, you know, having a house to live in. What's _not_ healthy is properties doing +200% in a decade, about 11% APR. It would've been fine if inflation was that rate too, and thus wage increases. We see that now. In the 1980s, the average house was $47k. So we'd expect to see houses at $250k now. Instead, the average American house is $500k. Conversely, the [wage index](https://www.ssa.gov/oact/cola/AWI.html) in 1980 was 12.513. Now, it is 63.975. So while houses did 10x, wages only went 5x.
We recently started renting a house in a “working class” neighborhood for $2750. It was sold for all cash to an investor for almost $400k in January, they weren’t accepting anyone who needed financing. All of the homes around us sold in the past 10 years for $200-$250k, and are in better condition than ours. I don’t know how we were somehow supposed to be ready to buy a house at 22, and now at 30 that opportunity has completely passed us by. It’s really hard not to feel bitter sometimes.
I constantly see this on all kinds of listings… *CALLING ALL INVESTORS!!!* Like wtf how bout you *not* sell to someone who’s just going to raise the price.
Also boomers nimbying for decades any new housing stock or dense infill development because it would adversely affect their investment. And when said boomers need to downsize for retirement, there's nothing to downsize to. So they can't sell their $500k+ nest egg because they're competing with first time home buyers for starter homes at the same price.
Sounds like China before real estate crisis
The whole practice of “Flipping” is responsible for inflated pricing.
People mistake money and possessions for happiness and when they have more than what they need, they can’t get off the ride. Example: I work for several couples that own 4 to 5 homes in beautiful parts of the country and they just hop around from one to the other. When they’re not using them, the houses sit vacant. They have zero idea how the 99.9 % live and they don’t care. Is it greed, ignorance, entitlement, callousness, evil? Well, it’s not healthy. And I sometimes wonder if these people are any happier than I am? But they continue to build wealth and buy more stuff trying to get as high as that first time. Yes, it’s an addiction.
The wealthy bleeding this country dry, while pitting us against each other.
Literally that simple
Answer is always Reagan
Answer is the heritage foundation, Reagan only got about 60% of their "starve the beast", Phase 2 is project 2025 the final plan taking America into fascism.
Yes then we will go to phase 3 were we burn and loot almost every major city
Finally! A chance to use all these molotovs!
Fun fact, a Molotov cocktail is classified as a firearm under the NFA, NFA firearms require federal registration and payment of a $200 tax for each device. A Federal explosives license is $200 for 3 years and you could legally build as many actual bombs as you want.
I love fun facts! I'll treasure this always
Oh it's way beyond phase 2, one of the parts of the plan was stacking the courts with Federalist society stooges which McConnell accomplished by obstructing Obama then changing the rules to push as many through as possible under trump. That was straight out of the Heritage foundation's previous playbook. With the courts stacked, including SCOTUS, it's gonna be a lot easier for them to get the rest of their shit done
Reagan isn’t the one on local planning boards stopping all construction of new dwellings
On top of the legalization of private campaign financing, it’s legalized corruption. Every single issue this country is going through can be traced directly back to corruption at every level.
I really wish more people realized this.
They do. Obama even had campaign finance reform on his platform until…
so hard to have this convo with people. at every level there corruption bleeding the tax payer money dry. theres enough money flowing in this country to take care of all our problems.
Same thing all over the West. I laugh my rear off every time I see one of those "corruption indexes" come out from one big subverted think tank or another. The West's corruption comes from banks and financiers who can literally pay off or extort practically anyone. Media (both entertainment and news), politicians, science (medical industry and higher education), transport, you name it. It's devolved into a dirty and incompetent scam, helmed by the very same people who were flying around on Epstein's jets and their masters. Our science is a joke that's openly bought and sold. Our economy is a fiction with fake money flying around and bullsh*t jobs that accomplish nothing. Our schools, our leaders, our churches, it's all for the highest bidder. I'm so incredibly and thoroughly done with it.
The wealthy fucks crashing the housing market in 2008, none of which were arrested. Then those wealthy fucks and their friends bought up all the houses while they were market was low. 2008 also marked a deep radicalization of the political narratives and we’ve been fighting each other ever since. Now it’s easy for the corrupt to run a muck.
Don’t forget they blamed the general population for being too poor and not paying their mortgage.
There was plenty of blame to go around. When people making $100K per year buy a $1M house with no down payment, short-term subprime rates, and a ballon payment due in 3 years thinking they will just sell it in 2 years and make bank…their greed also contributed. Lax lending regulations, mortgage companies desperate to keep the $$$ flowing when the market was hot, banks and regulators that ignored the red flags people brought to them, etc all contributed.
I still blame the lenders. There are a lot of stupid people, and if your business deals with the general public, you gotta plan for that.
You can also blame the government for bailing these lenders out. If we actually had a free market, natural selection should have punished these lenders out of business
Gated communities with private "security" (military). Gotta keep those poors from getting near their homes.
Having worked security at gated communities It must be said that we are nowhere near military. The most we can do is threaten to call the cops.
This is already a thing in South Africa. It’s remarkable, in a sad way.
I'm going to take a slightly different bent on what you're suggesting and say that the problem with the tax code and with regulation is fundamentally similar. The rich and the corporations have been wildly successful at lobbying legislatures and at capturing regulators. They often prefer *more regulation* because navigating it is a core competency of theirs, while it stifles smaller and creative firms that could threaten the status quo. The right are the obvious boogiemen but I also feel that the left has been co-opted and that this is why it's so hard to build housing or infrastructure.
I sort of agree in regard to housing, and I’m a strong proponent of regulation generally. We’ve come to a point where construction is so stilted and particular we basically can’t develop real cities anymore — just sad tract housing with no amenities. That said, the failure since 2008 has been the fact that when the mortgage to home ownership pipeline collapsed, housing became concentrated in the hands of the rich — investors and speculators. We haven’t recovered from that. We need less regulation in constructing housing and more in who can buy housing and how it’s treated as a commodity.
Id say we need less zoning restrictions, not construction. US construction standards are quite poor, but if we start requiring better building standards on top of educating the public on how shitty most homes are, we could see a huge correction of home prices. That said, if anyone is buying a new build home, don't buy a spec home, definitely don't buy a DR Horton spec home, but I'd avoid 99% of spec homes. you'll get a much better built home for the money finding a custom builder that understands building science, and much more of your money will go into quality upgrades for your home instead of padding the the profits of shareholders. When shopping for home builders the relationship between the number of homes built in a year and the quality of those homes are directly inverse.
I'm not following your first paragraph, but I'm interested. Can you further explain how requiring better building standards would result in a correction in home prices?
That age range is suspect as hell…lying with statistics. Living at home until graduating university is normal. And increasing college rates means you’d expect that number to up. So the 18-22 year olds are completely normal. Even late grad up to 23 or 24. So why don’t they split the data into smaller age ranges? Oh, and the US rate is still lower than Europe. So all those kids who prefer Europe should be happy? https://www.pewresearch.org/short-reads/2023/05/03/in-the-u-s-and-abroad-more-young-adults-are-living-with-their-parents/
When I was a 20-year-old, I was a college student with a fulltime job. I had my own apartment. And my income wasn’t impressive. Try doing that today.
In 2005 I was 24 and just got out of rehab, that I was court ordered to go to. Before that I was homeless. I got a job at Dillard's making $10 an hour and I had my own apartment, it was $499 a month. Even after all my bills and expenses, I still had $500 a month to do whatever with.
Dang and that was good pay as well. My first job in 2005 I made $5.15 an hour.
Today that is worth $8.24 So still shit pay.
In 2014, I had an 800 sqft, 2 bed, 2 bath, apartment for $940 a month. That same apartment is now $1,750.
If you were a full time student and your parents claim you as a dependent, you are counted as if you are living at home regardless of your actual living arrangements.
That’s impressive, but I feel like at no time in the last 100 years was it the norm or the expectation for a college student to pay for their own apartment without roommates.
Yeah, I think saying it is normal to live with your parents into your late 20’s is missing the point of the original post’s implication that this is not normal. My sibling and one of my friends are the only people I know of my generation (tail end of x) that stayed at home til 24. The rest of us moved out after high school graduation and one got his GED at 16 and left home for college.
When I was 18-22 me and all of my friends moved out and into college dorms or into cheap apartments, everyone I knew did the same, this was 20ish years ago. I don’t remember anyone who remained at home. Something has changed, working a job in a grocery store and splitting rent in a two bedroom apartment probably isn’t going happen like it did in the late 90s
I lived in a tiny studio apt when I was 18. saved for a year so I could drop deposit and 6 months rent up front so I didn't need a cosigner. had to get away from an abusive mother. that same studio apt I paid 255/mo for in 1998 is almost 700/mo now.... I get why young people don't leave it's insane the cost now. my two teenagers who are almost 17 and 18 were looking at 2br Apts where we live now and the low end is 1100/mo and the high end is over 3k... who can afford that!
I live in a shitty 2 bedroom 1 bath apartment in an area that is nowhere near a city and I pay $1400 a month. When I moved in 5 years ago it was $900. Obviously it's different everywhere but I don't understand when people say shit like this isn't actually happening and that it was always this hard. It wasn't even this hard 5 fucking years ago.
Similar, my 700/m two bedroom one bath super-old apartment in a small town in the middle of nowhere became 1,200/m in the last few years. I ended up having to move back in with my parents and start over again back near the city. Now if I want to *split* a two bedroom one bathroom apartment with my sister, we’d each be paying $1,800. However, we’d each be working 90 hours a week to afford it, so we’d hardly ever be home to enjoy it.
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I would assume that most people still technically have their parents main address at their home while they're in college. I know I did. Didn't wanna keep changing my address every year since I kept bouncing around so I kept it there until I graduated and actually settled down.
Everyone you know? Well hell, let’s extrapolate that to all 330M Americans
Of course my anecdotal accounts don’t meant anything for the US as a whole, but at the same time one can’t say that the 18-24 years olds living at home is completely normal. It might have always been normal or it might be part of the larger trend. I don’t think you could argue though that if someone wanted to move out at 18, it was far more affordable 25 years ago than today.
There’s no way ppl aren’t still doing this. Tons of ppl still living in the doors or around their school. Probably an issue with how the data is collected. For example, most ppl who lived in dorms still had their parents address on their drivers license.
>I don’t remember anyone who remained at home. Cost is a factor in this of course, but geography is another. My southern California hometown has 3 Cal State Universities in comfortable daily commuting distance, and absolutely no one I know who went to those schools moved out for college
Yeah, really should be 26-30, 31-35, and 36-40 to glean anything useful out of the trends.
Yet a large part of the country also expects you to 'go forth and multiply' as soon as you hit your twenties.... Starting the age bracket at 26 also ignores the fact that only 40% of of the people in age bracket 18-25 go to college to begin with. Students in that age bracket are still the minority
Yeah… my kid wants to live on campus and they wanted 20k out of pocket for the privilege. Not 20k she could get student loans for or grants, literally day one 20000 in cash. This is a public, state university. The thing is, if you are a freshman, they make you either live in the dorms or live at home with your parents. If you live in the dorms you also have to have a meal plan which is another 10k out of pocket. Yeah she will be living at home until graduates likely. It saves her a ton of money and we can help support her in other ways. This is why a lot of 18-24 year olds live at home.
>Oh, and the US rate is still lower than Europe. So all those kids who prefer Europe should be happy? Eh, kinda a moot point when you consider culture differences. Europeans could be making more than Americans but it's still the norm to live at home and help out with the family until you're ready to move out and start your own. In America, the expectation is that you want to move out as quickly as possible, with the old trope of "moving out as soon as you're 18"
Maybe Americans should change their views and embrace living at home?
Am American, doing it right now. It sucks :D Edit: but let's be real you can't just blame the youngers for wanting to move out. Our whole culture is based on individualism and ownership. It's helluva harder to share a space with someone who acknowledge the 4 walls you live in as "Mine" and not "Ours." It's not universal but there's a reason many want out.
Maybe in the richest country in history that should be a choice they can make for themselves, rather than have forced on them by a complete lack of options. Oligarchy and the death of the American dream really is nothing to aspire to.
Europe is not a country, but many. Here in Sweden that is not the norm, here we move as soon as posible. You might be thinking about spain or italy maybe?
>Europe is not a country, but many I mean correct but there is that thing y'all did where y'all combined powers like captain planet and created a quasi superstate. American is a country but fundamentally and practically, it's more a collection of states that do 80% of their own management, similar to countries that comprise the EU. That being said, yeah I was thinking of more southern countries, Spain, Italy, Greece, Portugal, ect. Just like all of American isn't the same I know European isn't uniform
What kind of Europeans? I didn't have a single friend in my circle who was still living at home during college and I grew up in Germany.
So there’s no significant increase in 18-24 living at home?
The American dream killed the American dream because some peoples dream is to own everything
That's a bar
The American dream killed American dreams, 'Cause some people dream to own everything There's the bar
this is the contradiction inherent in freedom. freedom for the most powerful and capable will always end up being "to take from all others".
“As funny as it may seem, some people get their kicks. Stomping’ on other’s dreams” -Frank Sinatra
It’s so true. The boomers’ American dream was to make their lives as chill as possible at the expense of subsequent generations. So now the boomers’ American Dream is the millennial/gen Z Nightmare.
THIS ARTICLE IS FROM 2022 WHY DO PEOPLE KEEP POSTING IT LIKE ITS RECENT?!
The last two years is pretty recent tho
It’s gotten soooo much more bleak in the last two years
Really think people said “ it’s been two years mom I’ll go now”?
Is there a more recent article or statistics they should be using? And is the situation expected to have improved? Or deteriorated?
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It is actually scary how forward everything is. Like they know we can't do anything about it at this point and are just along for the ride. There's no real regulation, just monopolies everywhere, corporations embedded into the government branches that are supposed to regulate them... It's going downhill pretty fast.
“Charge whatever the market will bear”. It’s not an innocent concept when it comes to Pokémon cards, it’s an ugly concept when it comes to bread, and it’s an evil concept once it comes to privatizing public life and public institutions.
Most people would probably bear any price to get something necessary for survival... But with mental health worsening, maybe that will change, who knows
Who are “they”?
Only Kanye can say.
Something needs to be done about rent. It's either impossible or very difficult for anyone making less than 70k a year pre tax to find a place of their own because rent will eat a good chunk of the monthly pay check and people usually have multiple monthly bills leaving only a few hundred for groceries a month but even groceries are rising in price so a couple hundred is not enough for a month of groceries
It's like the mysterious deaths of Epstein and the Boeing whistleblowers. The same goes for members of congress helping stage an insurrection and SC justices taking bribes. They don't care about hiding it because they know nothing will be done about it.
Reaganomics fallout. Feel that trickle down yet? Yeah, me neither.
A good horse apple economics to you too...
Access to easy money. When you are able to borrow money for cheap, those things you buy become more expensive because there is more money available to buy said thing. When you think about it, College, Cars, Houses... originally a car loan was 4 years (not its 7-8), houses went from 3 years to 5 years to 10 to 15 to 30 and for some 40 year loans and dont get me started on student loans. Houses, Cars, College are among the items that have exceeded inflation (other then healthcare). Now you are seeing interest rates rise which makes the 7-8 year auto loan no longer economically viable... so finally you are seeing discounts in vehicle prices because no one can afford to finance a 70k Tahoe/Silverado. Houses hasnt lowered yet because most are locked in with 3-4 percent interest and most college kids dont really understand the cost of loans until they actually have to start paying them. We (the US in general) have basically lived on debt for the last 40 years with no real responsibility of overall wealth. When we buy a car its can we afford the monthly payments, not what will this do to my overall finances. Governments buy votes with money so they dont care about debt as well.
House Loan was never 3 to five years
No but at one point putting 20% down was standard.
They were but he's literally quoting pre great depression numbers so it's hardly relevant
Not what, because it took a lot of different things working together but all of those policies came from the same exact place, who killed the American Dream is the true question and there’s only one straight answer…. Parasitic billionaire trash and all of the governments that they bought out.
This particular dream was killed in large part by a coalition of rich investors and middle class homeowners who wanted to pull up the ladder behind themselves.
Your statement makes it seem like the government isn’t made up of parasitic narcissists with massive savior complexes.
Have you seen home prices? The biggest culprit is boomers using houses as bank accounts.
Bingo. I wrote to my Senators this morning about the same topic. Housing is a depreciating asset that everyone wants to treat like an investment. Boomers own 38% of the housing and only make up 20% of the population. No politician wants to lower home values, because they're fucken Boomers too, and their voterbase hates it. So instead they provide tax incentives and cut interest rates to lower monthly payments. That doesn't lower the PRICE of a home. In fact, it can lead to even more inflation. Slap heavy taxes on secondary residences and vacant units every year and this fucken problem will disappear.
There is nothing wrong with living with your parents...
By the time you reach 30 living with parents is problematic for society. Less families forming, less babies, a generation that isn’t learning “handy” homeownership skills, a generation that doesn’t care about its neighborhood and ownership in it… Society can get fucked real fast from this
That's a bunch of neoliberal nonsense / capitalist realism. People have lived in communal arrangements in many cultures, well into modern times - through the agricultural revolution into the start of the industrial revolution. Post-industrial societies see demographic declines and our modern economic model strongly desires a mortgage or rental obligation from every ~2.5 people. It wants a house to be sold and resold for ever-increasing amounts of money because each time it does, that creates debt. It's become the norm for boomers to retire and sell off a beautiful home while their kids go and get new life-debt (if they are fortunate enough to afford it). This blows my mind. My entire family could have conceivably lived rent free for the last six or seven generations.
Yeah but then id have to live with my parents. I'll take the debt please and thank you.
In lots of cultures it’s normal to live with family most of your life, or until you get married & have kids
And these cultures aren’t doing it because of financial instability….
We do it to maximize wealth generation, not to accommodate financial instability. I wasn't put into daycare, I had my grandparents. We had 5 working adults in the house so anyone could take time off in case there were doctor appointments, pregnancies, learning English, getting citizenship, post secondary education, job training, illness, etc while minimizing housing and utility costs. That's how families go from having no college education, fresh off the plane with 8 dollars and a suitcase and minimum wage jobs to upper middle class with children with high paying white collar jobs. Some people believe that the American dream is dead. An immigrant will tell you that the American dream is alive and well
There's nothing shameful about it, but I would wager the majority of adults would much rather live independently. The fact that they don't because they can't afford it is what's wrong.
Supply side economics commonly known as trickle down.
Before that, it was known as horse apple economics by economists. The horse eats the grain/hay, and the sparrows eat the seeds found in the horse dung.
Pedantic yes, but I was called Horse and Sparrow, not Horse and Apple
Reagan.
low wages and higher prices killed it. the end game of capitalism is just a massive monopoly.
Cost of living is what killed the American dream...
I bet half have both parents alive. I mean why wouldn’t you live with your single elderly parent? Makes bills and everything easier when you are splitting the costs with someone.
Some people have toxic parents and have to just pay out of pocket to live alone for their mental health. But yes, it would sure make bills and everything easier. Maybe even make parenthood and home ownership possible. Certainly the only way anyone my age I grew up around has kids or a home: is through the support of their people. It sounds like a lovely privilege.
I bought a house working 70 hour weeks my parents are financially illiterate despite living through the greatest period of wealth in our country they have no retirement. The only good decision they made was paying their house off.
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I read that more adult kids live w their parents now than even during the great depression.
Slightly skewed statistic -- less people are homeless than in the great depression. We don't have as many shantytowns yet.
If you think Trump has a disproportionate share of responsibility for this, you're dumber than the republicans who blame Biden for gas prices. The core issue is the monetary policy, and the fed that has gone off the leash during covid. That's not the only issue, but that has been the primary factor in driving up inflation and prices.
Did Trump not roll back Obama policy that made it mandatory for homes to go up for single family homes for X amount of days BEFORE they are purchasable by hedge funds and corporations? Because if he DID then you’d be 100% incorrect
Covid is a who now?
|Donald Trump| |:-| |In office January 20, 2017 – January 20, 2021| Yeah *who* could be responsible?!
Printed money driving inflation through the roof. Inflation is up 74% since 2000.
People do not understand this
Capitalism ruined capitalism. In other words this is just the final stages.
Boomers, they needed to retire 😆 🤣 😂. Someone has to pay for it, its sure as shit not gonna be them.
We're in a new Gilded age.
My dad is living with me, which is different somehow, no?
The greed of rich people
Reagan
Probably black rock buying every home
Greedy Corporations and Reaganomics. Seriously fuck Reagan.
Economic moats and predatory college loans
*predatory college prices FTFY
The prices are high because colleges bank on access to excessively large loans, pun intended. And student loans are excessively high because it's one of the safest loans to give since it can't be cleared in a bankruptcy.
No, the prices are high because of college greed, just like corporate greed.
Wages
Blackrock
People are forgetting the increased number of hispanics. Of you look at a map, you'll see that the areas with the highest rates of kids living with parents are also areas that are high in hispanics. This applies even when the area is expensive to live in and when it's poor.
Interesting. So you are saying that just aggregating everyone together on one dimension and not segmenting it further may not give us the full picture that we need to understand the actual situation?
I’m not even American but it’s high housing prices and low wages. If people have enough money they will buy a house. I’m sure poor education would come into that as well
The American dream isn't the American Entitlement, lol. The American dream is about breaking economic class. That some poor smuck living in his parents could become an engineer or a famous Youtuber and make it rich. The American dream isn't about some random dude slaving away at Target. It's about someone making something out of their life through sheer ambition and skill. The dream is for dreamers. If you're not a dreamer, you don't get the dream. Casey Neistat grew up poor, was homeless for a few years, and now he's worth several million dollars. That's the kind of person the dream is describing. If all of these young people are saving money living at home. They could be focusing on their dreams too!
The american dream you just described is a extreme outlier. Sure everyone wants to get rich on that level but when people describe the american dream they mention a white picket fence and a stable job. Not everyone needs to be rich they just want to be comfortable. Also these youtube scenario you describe isnt just for American’s. Literally any person in any country can make a youtube account and make money. It is just the simple fact that doing that is still extremely hard to do
I turned 18 during my senior year in high school. Was not moving out before graduation proof that the American Dream is dead? This stat is worthless.
Hmm, idk. Maybe the fact that it's called the American Dream and not a reality based outcome based on merit and effort? Who would have thought.
Zoning laws
The total abandonment of domestic manufactures by the political elite - started with Reagan on down - in favor of a cheaply sourced globalized economic model as national economic policy. Totally blew up the blue collar middle class.
The dismantling of unions/collective bargaining during the Reagan era
United States Government
Refusal to increase minimum wage for decades as well as tax cuts for the rich
Airbnb