The inability for younger people to buy homes

[seadoug]

There was an earlier thread discussing the proposal of a 50-year mortgage. I'm by no means for it.

I did want to share that I saw on the news today the average age of buyers for starter homes is now 40 y/o! Also, the median home price in the US, according to Redfin, is $462,206! I bought my first home at 26 y/o with a 14% ARM. It was a very basic new build 2 BR/2 Bath. It had linoleum/carpet and laminate countertops. We installed new, thicker carpet and hung grass cloth wallpaper in the living room, so it was cheap but we made it our own.

We built a 2700 sq. ft., 4 BR, 3 bath two-story house in the suburbs of South Florida in 1998 when I was 41. It was a great multi-level design but because we took the standard tile and laminate cabinets and countertops it cost less than $200,000. So few builders are even offering these options anymore.

I feel bad that so many young people can no longer afford what was once considered to be The American Dream.

 

[squatting dog]

Back in 1986, I bought a 4 br 2 ba. brand new home in Santee Ca. for $106,000. Of course the mortgage rate was 13 percent, but, I was glad I didn't have an ARM. Most of the neighbors did and within 2 years, they were all underwater.
Hard to believe a new house in Ca. was that price.

 

[OldOld]

Minimum wages has also gone up a lot compared to 40 years ago.

 

[That Lady in PA]

Minimum wages has also gone up a lot compared to 40 years ago.

PA 1985: $3.35
PA 2025: $7.25

Not a big increase in 40 years, IMHO.

 

[That Lady in PA]

Also, the median home price in the US, according to Redfin, is $462,206!

PA median is under $300,000.
Buying is cheaper than renting out this way.

 

[TeePee]

Back in 1986, I bought a 4 br 2 ba. brand new home in Santee Ca. for $106,000. Of course the mortgage rate was 13 percent, but, I was glad I didn't have an ARM. Most of the neighbors did and within 2 years, they were all underwater.
Hard to believe a new house in Ca. was that price.



View attachment 466386

Beautiful home and setting.

 

[QuietByNature]

In Toronto you would be hard pressed to find a home for under $1,000,000 and that's a 900 sq ft bungalow that would need to be torn down and build a new home.

 

[oscash]

My son has decided to build on top of his home because on checking the prices of homes in his area, they are all over 1 million-2 million plus. He paid $700,000 for it 12 years ago. Not only that all the newer homes are 2 storey high but the rooms are all very small.

 

[jujube]

Our first house cost $17,500 in 1973. We went from $140 a month rent, which included utilities, to $153 a month mortgage and paying our own utilities. Boy, were we scared we had made a mistake.

 

[That Lady in PA]

Oddly enogh, this popped up today...

This is the most affordable city in the US

 

[OldOld]

Oddly enogh, this popped up today...

This is the most affordable city in the US

No need to click and bait. This article says: Pennsylvania City.
For whatever reason if you are even interested in this city and want to waste time reading this article.

 

[debodun]

Not only is the affordability in question, but also whether they want to be tied down to home ownership.

 

[That Lady in PA]

No need to click and bait. This article says: Pennsylvania City.
For whatever reason if you are even interested in this city and want to waste time reading this article.

It is about Pittsburgh and is not click bait. It shows how affordable housing is in my area.

 

[Ted01]

It is a sad state of affairs, in my opinion too, @seadoug.
The American dream has become something different than it was in our day...
if the youth of America are dreaming about anything anymore or even have hope.
I truly feel bad about the future...

Personally, I've seen "this" coming for a while now. Both the housing market shrinking
and the growth in the lower-class... but the lack of recognition of either.
Even when folks in the Gov. talk about a need to open the market for first-time buyers,
the prices of their starter-homes are way outside the affordability of young people.

I think that it costs more to live the American lifestyle these days, but it seems to me
that the lifestyle is being shaped, somewhat, into corporate-America... and if they're not
part of a corporation, they're getting run into the ground.
I maybe I've just watched too many of those "dystopian future" movies.
IDK...

 

[OldOld]

There is always a reason for low price city and high price city. Even with the different neighborhoods in the sam city, there are alway reasons behind their price and affordability.

 

[squatting dog]

PA 1985: $3.35
PA 2025: $7.25

Not a big increase in 40 years, IMHO.

The 1985 minimum wage of $3.35 would be worth approximately $9.50 in 2024 dollars, showing that even with the increase in the federal rate, its real value has not kept pace with inflation.

 

[Flarbalard]

1.60 in '71 is worth 12.80 now according to google.

 

[Capt Lightning]

My elder daughter has just bought her own house. I'm totally gobsmacked at the price she paid, but that was the going rate. The area seems to be 'on the up' with both the BBC at Media City and The English national opera moving to the area. Hopefully she will have made a good investment.

 

[squatting dog]

1.60 in '71 is worth 12.80 now according to google.

You made me go back and see what 3.35 would be worth today (2025) rather than 2024.
1985 wage in 2025 dollars: $3.35 × 2.97 ≈ $9.95 per hour.

Then, this tid-bit popped up. Average CPI in 1985: 107.6
Latest CPI (as of October 2025): Approximately 319.8 (based on BLS data through September 2025, with October estimates aligning closely).
Man... The dollar has taken a big hit for sure.

 

[Flarbalard]

You made me go back and see what 3.35 would be worth today (2025) rather than 2024.
1985 wage in 2025 dollars: $3.35 × 2.97 ≈ $9.95 per hour.

Then, this tid-bit popped up. Average CPI in 1985: 107.6
Latest CPI (as of October 2025): Approximately 319.8 (based on BLS data through September 2025, with October estimates aligning closely).
Man... The dollar has taken a big hit for sure.

Yikes !

 

[OldOld]

Aren't you all glad that you bought your home 40 years ago?

 

[CaliS]

PA 1985: $3.35
PA 2025: $7.25

Not a big increase in 40 years, IMHO.

Yeah, I'm going to go out on a limb and say, wages have not kept up with inflation and certainly not the price of buying a house. The gap has been growing steadily for several years.

 

[MACKTEXAS]

The noon news reported that home foreclosures are up 20% this October from a year ago.

MarketWatch confirms

 

[oldman]

My two kids were lucky enouhgh that their mother and I decided to pay for their home. My parents did it for my sister and me, so we figured why not.

 

[squatting dog]

Aren't you all glad that you bought your home 40 years ago?

Heck, that was kind of like the midway point for us. We started with next to nothing and worked our way up. It only took 13 houses to get where we are today. (debt free). I'd love to take credit, but, without the love of my life, (the real brains of the outfit), I'd probably be living under a bridge somewhere.