I write educational posts on buying your home for the first time. I even posted my homebuying book at r/NewbHomebuyer go check it out

I'm taking this from a higher activity sub and giving my opinion here. This is what the user posted:

"my parents bought their 4br house for 80k in the 90s and it actually hurts"

they keep telling me to just save up while the same house today is 650k and hasn't been updated since 1974. i make double what they made back then but i can barely afford a 1br condo with a $400 hoa fee. the math is literally broken and i'm tired of being told it's because of my coffee or netflix habits..

Let's run the numbers because the boomer comparison gets thrown around a lot and I want to actually show it.

$80,000 in 1990 with a 10% rate (average back then) and 20% down = a $562 P/I payment. Median household income in 1990 was about $29,943, so that payment was about 22% of gross monthly income.

$650,000 today with a 6.25% rate and 5% down = $3,803 P/I payment. Plus property taxes, insurance, and PMI you're easily at $4,500/month. Median income today is about $80,000, so that payment is 67% of gross monthly income.

Their payment was 22% of income. Yours would be 67%. You'd need to make about $245k to have the same ratio they did.

...and you should stop watching netflix ;)

Random thoughts: population decline won't start happening until around 2070 in the US. If no one can figure out how to make a lot of structurally sound homes at half the cost, then purchase prices will continue to rise until 2070. that's my prediction.

A bit ago I was told by an older person that us "young people move around too much" and I remember telling him that the game has changed. You have to work harder and longer to get into that house. condo -> Middle townhome -> corner townhome -> single family residence.

First time buyer share of purchases is shrinking but it's still doable.

Sam

I write educational posts on buying your home for the first time. I even posted my homebuying book at r/NewbHomebuyer go check it out

Originally shared by u/SamTMortgageBroker in r/NewbHomebuyer — view the original thread.