Millennial Home Ownership Shrinks as Student Debt Grows

2u3e9v · 6時間前

Let's not forget high rent too! How can I possibly save when rent is so goddamn expensive?

oldcreaker · 6時間前

What people are having hard time admitting is they are generally much poorer these days. What's shifted is instead of making dirt wages, they have huge debt. So even though income looks ok, overall the balance sheet sucks. And things like home ownership is moving again out of the reach of many people.

Allredythere · 4時間前

I wish I could credit the redditor who said it, but the best comment I've seen about this was, "Well, what do you expect when you give a young person a mortgage and no home?"

Illusi · 7時間前

The bar graph is fine, but the line graph is misleading. The vertical axis starts at 26%.

In some cases, I agree that starting at 0 makes a line graph unreadable, since you can't make out the detail. But in this case it should still be clearly readable and the details aren't that important, just that it is declining. I'd like a graph to show me how fast it is declining, and this graph doesn't do that.

phillysan · 6時間前

As a 28 y/o who doesn't have any student debt and owns a home, I feel very fortunate, but it's a scary market out there. My wife and I bought just before prices really started to take off in our area. Friends who are looking to buy today, 4 years later, are shit out of luck. Prices are just too high. And we have a mortgage that's almost 3 times our combined annual income, and houses are going for 50% more now than what they were. That's probably the part that disturbs me the most.

Gazunta1 · 4時間前

Does it have anything to do with debt, though? Even those without debt are struggling.

It's like joining a game of Monopoly half-way through. It doesn't matter how much money the bank gives you if there are no streets to buy and every street is filled with hotels and no one in the game wants to give you a helping hand. They only care about your money and don't care if they take it all and you lose.

Except this is real life and losing can mean being broke and homeless.

SecretDragoon · 8時間前

I find it extremely difficult to own a home when all of the homes in the area I work cost $300k+. Even condos cost $200k to own. I saw an offer for a Mobile home for $105k the other day.

These expectations are impossible if you want to live alone and not start a family. I make above the median wage. I cannot compete with a family with 2 or more incomes.

nobodyspecial · 5時間前

The availability of student loans combined with hiring credentialism has let universities raise costs far faster than the rate of inflation.

In the 30's, prior to the days when the government "helped", a college student could earn enough money during summer break to fund themselves through a school year. My father-in-law paid his own way through Berkeley and a few members of the Washington Crew team that went to Berlin in 1936 did the same.

Daniilvb · 3時間前

My wife and I tried to get approved for a house, we have good credit. They said the debt/income ratio was too high. Now I pay double the price I would for a mortgage in rent.

ulver026 · 4時間前

Does this have anything to do with where people want to live and buy houses vs actually not being able to buy a house? I recently moved to the states and im not making a lot but im able to pay rent while having enough to take care of other stuff.

Mcmeman · 5時間前

My mortgage and taxes are about 1500$ a month plus all my utility bills I pay about 1900-2000$ a month for my 3 bed 2 bath home on a fairly small lot near the city.

Started at 1300$ a month and taxes keep going up. Takes a whole paycheck now. I am barley ahead on what I owe vs what it's worth and I think of selling to find something cheaper all the time.

My gf makes half what I do and only contributes a fee hundred each month after her student loans, car payment, and her insane medical bills as she has shit insurance.

I think about how my parents paid next to nothing for their house growing up. This generation was setup to fail... And it's awful to look around at period People I went to school with and think. These are some talented smart people who can't catch a fucking break.

Laribold · 4時間前

My massive amounts of student debt were the only reason I was able to buy a home, actually. During my five years of college, the repayment was deferred and marked as "paid" every month, so by the time I graduated at 22, I had a damn good credit score, got a terrible job at a factory for $10/hour, and with $4,000 saved, was approved for an FHA mortgage within six months (before the repayment period started). Then, I bought the home and rented out three of the bedrooms to friends, which covered the cost of the mortgage, the monthly repayments on my student loans, and then some. Now four years later, I've accrued enough equity to be able to pay back all of my student loans. Still, fuck student loans. It's been four stressful years of living on a financial cliff, and I lucked out every bit of the way.

alphapulse · 7時間前

Federal loan reform must be part of the long term solution. Currently approval is based on need. Applicant and school merit, as well as the long term fiscal viability of the applicant's choices need to somehow be part of the equation.

Sgtonearm01 · 5時間前

My advice, go to an affordable school. Unless it's Ivy League or top tier, no employers give a shit.

ensignlee · 5時間前

It's almost like having student debt inhibits your ability to own homes or something.

Like there's only a finite pool of dollars and things have to get prioritized. /s

SodaAnt · 5時間前

I'd say the more important point than student debt is the "lack of affordable housing bit". And I don't think that's a really solvable problem either. If you want single family detached housing, that takes up a lot of space, and with cities getting bigger, and people not willing to commute two hours to work. There's limited supply, and no easy way to change that. Things like condos and high rises will stem the tide, but even those are quite expensive to make.

PhiZappaKrappa · 4時間前

As a guy with a master's degree and buttloads of experience in my field, I've been unable to find full-time work since graduation in June.

It fucking sucks, mostly waiting for the previous generation to die off.

rusmo · 4時間前

The tuition bubble is going to burst. The time is ripe for technology to seriously disrupt higher education.

oldcreaker · 5時間前

Student debt is the 21st century model of sharecropping and company towns. I read an article a while back saying that most students won't be clearing their student debt until they are like 38 years old. That's a big chunk of time making a paycheck for someone else.

TrigTamer · 6時間前

Am I reading this chart wrong or is it backwards? It looks like the chart shows debt going down and ownership going up as you move from 2005 to 2015.

VirginiaDork · 3時間前

Two out of control markets. Put them together and it is like being asked to chose between dying of prostate cancer or lung cancer. The government should make tuition price caps part of student loans the way they do with medical services. "Okay, we will loan your students money to attend, but those students getting government loans cannot be charged more than $X/credit hour. Don't like it, no loans for your school. Ask Devry how that is working out for them."

wiegleyj · 1時間前

stop... choosing... expensive... schools.

You don't need to "Get away from your parents" as much as you need to make smart financial decisions. your local state school will educate you for peanuts compared to private schools and will do just as good of a job at it.

awunderground · 7時間前

I think young people's desires to live in urban areas combined with exclusionary housing practices that make it impossible to buy starter homes/condos is the bigger culprit here. I don't have data to back this up, but I don't think a double y-axis graph with aggregated student debt numbers is a strong causal argument.

In general, people's perceptions about the composition, distribution, and effects of student debt are shaped by anecdote instead of data.

articulateantagonist · 5時間前

This hits home pretty hard. My husband and I (both millennials) make a decent amount between us, definitely enough to put down a payment on a house if we were debt-free... but with so much of our money tied up in $60K worth of student debt, we're struggling to save up enough for a payment on even the cheapest houses in our state. And then if something goes wrong with a car, if our dog gets sick, that sets us back by months.

joh2141 · 5時間前

I feel like with the way things are, purchasing and investing in homes is not worth the payoff unless you already have the money to spend it anyways. But if you're budgeting and buying, it can actually be a huge mistake depending on the circumstances.

BlossomingPetals · 3時間前

Sounds about right. Age 30, just finished graduate school. Significant student loan debt and do not qualify for a home mortgage. Living the dream!

choojack · 1時間前

idiots are going to schools that they can't afford. You can go to a public university and work to pay off your tuition. Stop taking out student loans and get a degree that will actually get you a fucking job. If you have to work 40 hours a week and only take 12 hours of classes a semester then that's what you have to do.

Rogoverre · 3時間前

If someone else, who is also working, is living with you, the rent goes down by half. If you are Romantically Involved with that person, you no longer have dating and socializing expenses. When the two of you are bored, instead of Going Out, you have friends over for dinner. The next goal is to get rid of the commutes. This involves living near work, possibly with two or even three other committed couples, because rent is high near the business district. You have a disciplined culture, and you put up massive bookcases for walls.

You might have a bathroom schedule, and a designated cook and a designated cleaner-upper. The others would compensate them by buying the food. You have a freezer and eat cheap. A lot of soups, rice, potatoes, home brewed coffee instead of getting it outside. And slow cooker stews.

If some children come of all this, you forget private school, and have two or three designated Home Schoolers.

The people who do well coming to the US from other places are willing to do two things: one is live crowded. The other is assignment of tasks.

Do not give your money to the coffee makers, the sandwich makers, the transportation system, and the dating, bar and club, system.

Get a few really trustworthy pals, some headphones, and a slow cooker and watch your life come together.

myheadsabovemyneck47 · 5時間前

what do you expect when you got high ass tuition, as well as needing some sort of EXTRA education after 18 years of bullshit in order to be able to sustain yourself, but after doing so you might just fall into crippling debt where you gotta work it off the rest of your life. thats one side of the life cycle of the work force. fuck the rich fuck the system

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