I Can't Afford It. Millennials Are Not Buying Homes.

[Kev]

This is bovine excrement, the millenials are forecast to be the wealthiest generation of Americans ever. The majority of the assets being inherited from their parents and grandparents.

My parents are baby boomers. My mom grew up on the farm and her and each of her siblings inherited small portions. Now there is nothing left. So I have no where to go except deer camp. That’s where I live now. I’m poor white trash with a college degree but at least I don’t live in a van down by the river.

 

[Kev]

The gov't will provide attitude.

Government won’t give my millennial self nothing.

 

[NE GA Pappy]

One of my rules of thumb is that your house needs to be paid off before you retire. For a lot of people they will be working until they drop dead.

It needs to be paid off years before you retire. I would say at least 10 years.

 

[ugajay]

I guess I'm a rare millennial. I wrote a check for my house. I also RENTED for years because I had no idea where I wanted to end up living my life. The key to the whole thing is work hard and save money. That's it.

 

[NE GA Pappy]

Government won’t give my millennial self nothing.

and it shouldn't.

you aren't entitled to any of my tax dollars, and neither are the rest of them

 

[nrh0011]

I will most likely be moving here pretty soon and plan to rent for about a year to get a feel for the area before buying anything.

 

[NE GA Pappy]

I will most likely be moving here pretty soon and plan to rent for about a year to get a feel for the area before buying anything.

renting is a great thing for a while. It is when people decide to live and rent for 40 years in the same town that I think is stupid

 

[nrh0011]

renting is a great thing for a while. It is when people decide to live and rent for 40 years in the same town that I think is stupid

I could not agree more.

 

[ChanceHill]

If you rent, then Karen can't take your house when she divorces you and takes your kids.

 

[Kev]

and it shouldn't.

you aren't entitled to any of my tax dollars, and neither are the rest of them

I don’t think they are entitled to mine either but the government sees otherwise. I drive through town everyday by the government housing. The people that live there have nicer cars than me and there will be 3 or 4 children playing in the yard while the mom sits and watches and drinks mad dog 20/20. I can’t afford half the stuff they have and they don’t even work.

What I’m saying is that there are a lot of snowflake mellenials out there that are a problem but there’s a lot more to it.

 

[LTZ25]

I can only speak for me , I was expected to move out after high school . Parents my age ruined this group of young adults . I don't include everyone but maybe 40 percent because the majority of the millennials that I see are squared away and are doing great . But no healthy creatures should live in the nest with their parents any longer than is needed to eat on their on .

 

[Triple C]

I own a few pieces of property and all paid for. But, I see nothing wrong with renting for those that choose to do so. You spreadsheet all of your expenses on home ownership and it will frighten you at what it costs to own a home over a 20 year period, regardless of the appreciation. I'm not sure you come out ahead. Taxes, insurance, repairs, big ticket replacement items like HVAC, new roofs, lawn care...the list goes on and on. But, I never want to be in a position of someone telling me I've gotta move so I choose to own.

Kind of like vehicles. We have 2, both paid for. But, when you figure depreciation and all of the related expenses, it's about the same as leasing, if not more, particularly if you don't keep a vehicle more than 4 or 5 years and most don't. When I retire, I'll be leasing vehicles for the wife and me going forward. Drive em for 3 years, turn em in and get a new one.

Got a co-worker that Ubers to work and every where else he goes. Doesn't even own a vehicle. He's an IT guy and says it's cheaper than owning. When he takes a trip he just rents a vehicle it it's long distance.

I guess I said all that to say...To each his own.

 

[sinclair1]

In all fairness, the amounts being spent on Vapes, Starbucks, and monster drinks isn't much different than what prior generations spent on beer, smokes and lotto tickets. Probably a hereditary connection between the two groups as well.

The more things change, the more they stay the same.

Exactly and they struggled buying homes too.

 

[sinclair1]

If you rent, then Karen can't take your house when she divorces you and takes your kids.

Oh boy that’s a great strategy, plan for a failed marriage and never set up the family for success.
I can see me now 20 years in renting a house waiting on that great plan to come thru.

Meanwhile on planet earth my deed is in the safe and the years of travel without burden are here.

 

[Triple C]

I guess I'm a rare millennial. I wrote a check for my house. I also RENTED for years because I had no idea where I wanted to end up living my life. The key to the whole thing is work hard and save money. That's it.

ugajay...Lot of millennial bashing on this forum. I just don't see it in the circles I run. We have a division full of millennial's and managed by a millennial. Bunch of hard working rock stars in that division and proud to say we have a strong bench coming up behind old farts like me. Our company is in great hands with what I see coming along. They love making money.

 

[sinclair1]

ugajay...Lot of millennial bashing on this forum. I just don't see it in the circles I run. We have a division full of millennial's and managed by a millennial. Bunch of hard working rock stars in that division and proud to say we have a strong bench coming up behind old farts like me. Our company is in great hands with what I see coming along. They love making money.

My staff is all millennials. They are rock stars as well, but I won't act like I didnt go thru 30 employees first.
It's like they either kick rear or are losers in the basement. I honestly plan to give my seat to the youngest one of the bunch. The interesting part is he is old school and was raised by his grand dad. This young man has goals and they don't involve all recreation. A good blend.

 

[model88_308]

One of my rules of thumb is that your house needs to be paid off before you retire. For a lot of people they will be working until they drop dead.

BINGO!!

Nothing wrong with renting. Apples to apples, it's usually cheaper in the long run. Buying (conventionally) creates a forced investment. If you were to rent something the same age/spec/location as to what you're buying it would usually be cheaper and you could invest that delta and probably come out better in 30 years after all financing costs, maintenance, upgrades, taxes, and transaction fees on a home are factored into the equation.

That said, many renters desire certain spec/finishes/features and a location where they generally could not afford to own. While they do income qualify to rent, they'll rent more than they really can afford. Then they do the same with a vehicle and save little to nothing.

You can accomplish your goals either way. As usual, it really boils down to financial planning, responsibility, and restraint. Renters and owners alike make horrible financial decisions.

I simply do not see it this way. I purchased my personal home 21 yrs ago for $150,000. I've put VERY little into it. Two furnace replacements (including one last week) come to ~ $6200. Maintenance in between replacements ~ $2,000. Minor roof repairs ~ $2,000. The value of my home has risen ~ $150,000. It's paid for. Taxes are $2600/year total. Insurance to include two very pricey writers is $2,000.

I live in this home today for $500 a month, including utilities and PLUS repairs. it ain't a bad house either. And, for reference I live within the city limits of the 5th largest city in Tennessee and within the most popular school district there.

 

[sinclair1]

My dad pounded in my head, son buy a cheap fixer over a trailer house. We like to act like our investments were the catalyst of where we are today.

Truth be told, I don't know if we would have even made our first mortgage paying what health insurance is today. My first job took $5.33 per two week paycheck for health insurance.

Five years of today's health insurance would buy our first home and most entry level jobs pay about what I made at entry level back then.

 

[Jeepnfish]

I'm an apartment maintenance tech. They rent because they wouldn't couldn't shouldn't begin to know how to keep a house up. Grown men don't know how to fix a loose toilet seat. I do it and they are amazed like I did a magic trick or something.

 

[dwhee87]

They can't afford to buy a home, but they can afford to pay rent every month, Which is more than the mortgage, insurance, taxes and upkeep on the home.

It must be this new math, 'cause I can't make it add up

https://www.foxbusiness.com/money/millennials-never-own-home

Can't qualify due to student loans.