Why can’t today’s young adults leave the nest? Blame high housing costs
Why can’t today’s young adults leave the nest? Blame high housing costs
Nearly one-third, or 31%, of Gen Z are living with their parents because they can't afford to buy or rent their own space, according to a recent report.
These days, housing affordability is a struggle for nearly everyone.
But for young adults just starting out, soaring home prices and sky-high rents have become one of the greatest obstacles to making it on their own.
Nearly one-third, or 31%, of Generation Z adults live at home with parents because they can’t afford to buy or rent their own space, according to a recent report by Intuit Credit Karma that polled 1,249 people age 18 and older. Gen Z is generally defined as those born between 1996 and 2012, including a cohort of teens and tweens.
“The current housing market has many Americans making adjustments to their living situations, including relocating to less-expensive cities and even moving back in with their families,” said Courtney Alev, Intuit Credit Karma’s consumer financial advocate.
Overall, the number of households with two or more adult generations has been on the rise for years, according to a Pew Research Center report. Now, 25% of young adults live in a multigenerational household, up from just 9% five decades ago.
Housing prices are stupid. My house went up 150,000 since 2020 and the only "improvement" that occurred was me breaking the garage door.
Try breaking some more things and thank me later.
Get a second garage door. Break that. Instant profit.
We were so damn lucky to be able to get a house just before all this started back in 2017. And even then only because we don't live in a very desirable town (although we do live in a nice neighborhood). We couldn't afford one anywhere now.
No shit.
Story Time: Right before the Covid lockdown there were dozens of condos for sale in my area for under $200k. Today, the only available condos are $596k (800sqft).
The prices in my area are like that, and it’s cheaper to BUY. But since wages didn’t go up, few youth can afford that down payment or monthly payment. Meanwhile, buildings are empty.
This country Is such a fucking joke. My small family of three will be homeless in a month because we can't afford to pay for food and our mortgage. We make to much got any government assistance but to little to live....My daughter already lost her asthma medication because insurance doesn't cover it. I had to get rid of my insurance for myself because we couldn't afford it and it wasn't covering anything for me. I'd kill myself but the slim chance I'd live it would just bring on more fucking bills. Why even bother trying any more.
Yup. My low wage job made me ineligible for assistance. With normal medical bills rising, it was more fiscally responsible for me to quit and be fully unemployed with free healthcare than to continue employment but go into big medical debt.
My fiance and I have had to withhold getting married because I make too much and she has an autoimmune disease. If we got married she would lose her Medicaid and essentially just die.
I am so sorry. I really wish I had the money to give you some, but even though I can't, have you tried doing a GoFundMe to see if anyone can help you stay above water for at least a little longer?
I really appreciate the kind gesture. I know I'll land on my feet even if it takes time. There are people worse off who could use the money and I could never feel right taking money without paying back or providing something worth the money. Life has its ups and its downs and right now it's my turn in the valley but I'll be back at the next peak soon enough !
Just out of curiosity, how much did your home cost?
We bought it for $222,222.00 with a $1,600 fixed rate. At that time we had a grace of 20% of our income for savings and such. Had to change jobs and kiddo got some medical issues. We are now at a loss of about 5% each month. Food and insurance is $2k a month alone now and that's after cutting everything we can.
There was an article recently about Vienna, I think, and they made progress on the housing crisis by just having the state own the houses. Nationalize housing.
edit: Found the article: https://www.theguardian.com/lifeandstyle/2024/jan/10/the-social-housing-secret-how-vienna-became-the-worlds-most-livable-city
while that is a valid point, i do not trust any government to manage them properly.
and also something something individual freedom to buy property and rent it out to have a little passive income.
In the US, the republican party would 100% try to sabotage any government program because they're ideologically opposed to government. It would be difficult to run any program while they're around waiting to sabotage it.
Also passive income from renting property is not really idealistic or healthy.
Anyway, I found the article: https://www.theguardian.com/lifeandstyle/2024/jan/10/the-social-housing-secret-how-vienna-became-the-worlds-most-livable-city
I thought for sure the housing crisis was over because the fed raised the rates. I mean lowered the rates! One of those two I forget which one makes the average house go from 800k to 250k where it's more affordable. More as in affordable.
In the case of my household, the 2 young adults can't even find a job that pays whatever a "living wage" is these days.
No chance of moving out if you can't find an adequate income or even full time hours..
The lack of a liveable minimum wage in this country is one of the top 3 or so issues that need drastic attention and just does not seem to get it.
My plan was to leave the HCOL area I'm in for a number of LCOL places. Kept waiting for the official OK from my job to move as I work remote. By the time they gave me that OK, housing prices doubled in every place I was looking, and the rates got jacked through the roof. It's not even that much cheaper to live out there. I feel stuck renting my slightly under market small 2 bedroom duplex unit. I light $3k on fire every month to do so. I hate it, and wish I could move back in with my Mom.
I burn $4500 every month and have little choice given work locations. Most of the units are empty and the corporate landlords are colluding to fix prices. I'm a single issue voter on affordable housing.
Do you know what we were paying for a large 2 bedroom in the NoHo Arts District (relatively nice area) of Los Angeles in the '00s? $1400 a month. We moved to a much less desirable area around 2010, but it was an actual house, and we were still paying only $1500 a month. We left L.A. the next year. I don't even want to know what the rent on either of them is now.
This is so incredibly selfish of me... she's only 13 so hopefully this will be over anyway by the time she's an adult... but I'd be happy if my daughter stayed with me until I died. Once I become an empty nester, I will be lost without her. But I also want her to strike out on her own and become independent, so it's not like I'm going to force her to stay... I'm still a little envious of parents whose kids are still with them as adults, even if those parents may not like it.
But, as I said, I also want her to be independent, so I hope this crisis is over in 5 years.
It's the same. My oldest is still at home and decided to stay until the car is paid off... And I've been totally OK with it.
Multi-generational homes are the human norm.
Please get a hobby
It's not about hobbies. I have plenty of stuff to do. It's about losing something that's almost a part of me, someone I've been putting so much of myself into for 13 years now. That's just how parenting works.
We already knew this. It's good to have data, but everybody already knew this.
They really shouldn't be including people who aren't even in their twenties in this statistic. It's been the norm for a while now for kids to not move out until they're in their twenties.
But yeah, we all know. No one can afford homes anymore and that will always affect those with the weakest incomes the most, which is largely the youngest group of adults.
Ban zoning and fix this problem or don't and let it get worse.
This in turn feeds into lower birth rates, which in turn feeds into a future lower ratio of workers to pensioners, which means lower pensions for pensioners.
Of course, when shit hits the fan we will be told by politicians that it was totally not predictable that their decades of house-price inflation stoking policies (that handsomelly reward mainly rich investors for their great personal quality of having lots of money) would end up screwing the young and, through demographics, those who are now middle aged (and today's young, again, when they're old).
Young adults can't afford home because this country votes for Republicans who make sure they don't make enough money to live a decent lifestyle. Young people can change that IF they would vote.
The United States just refuses to allow any new construction of houses. It's wild
What are you talking about?
They're talking about why we're in this situation, supply and demand. New homes are not being built at the rate of population growth and have been trending down for quite some time. But yes hyperbole doesn't help.
Restrictive zoning laws that force expensive space inefficient single family homes on large lots.
This is a dumb take.
There are new neighborhoods going in all over the place where I live, but they are no more affordable than existing home and often much less. Guess prices on building materials and labor have gone up a lot, too.
You know how there's all that barren land everywhere? YOU CAN'T BUILD ON IT!
You know how wood is plentiful and grows so much in abundance it catches on fire? YOU CAN'T USE ANY OF IT TO BUILD A HOME!
PWNED