State of housing costs in the US. Where does it end?

[Tin Roof]

Mom and I have not given him any hard cash monetary assistance, but we saw early on he was frugal with his money and saved nearly everything. So no rent and free meals, also it's a combined effort between him and his fiancée. he has a larger portion but joint effort.

He's working for an asphalt grinding and paving co.

That's good parenting.
We did that with our oldest son and he bought his first house at age 23 or 24. Would have with our daughter but she fell into a bad friends group and moved out right after high school and took some years to get back on track. Currently trying to do the same with our youngest son.

 

[Mikel]

Only really high end (2 million and up) and low end (under $500k) seem to be moving at all.

When we hear that median home prices keep going up, I think this is why. And it's not reflecting reality.

 

[Stingray]

So you subsidized the two largest expenses one has, that's a pretty good chunk of hard cash monetary assistance!

He proved early on that the money we were saving him was not going into wasteful things, so it was an easy call for us. it actually got cheaper, we were not paying private school tuition any more so we got a raise.

we will see how it goes from here out.

 

[JD Mark]

I forgot to mention...we charged our son minimal rent when before he married.

We also charge them rent now. Not enough to really make any money, but enough to teach them they have to pay for a place to live.

 

[Motorcharge]

So you subsidized the two largest expenses one has, that's a pretty good chunk of hard cash monetary assistance!

No shit. Every single time I hear some boomer say "well my kid is X age and owns his own home" they fail to mention they either let them live at home while they saved the money up or gave them the down payment for it.

 

[Stingray]

I forgot to mention...we charged our son minimal rent when before he married.

We also charge them rent now. Not enough to really make any money, but enough to teach them they have to pay for a place to live.

We started that out of high school, he paid about 6 months and came to us asking not to pay any more because he wanted to put it in a higher yield savings, so we agreed, and he proved to us he was responsible and did it, at work he has an investment option 401k/IRA that he's investing in.


While they were looking for houses they got pretty discouraged having investors in suits making cash offers on investment housing. basically blowing them out of the water. Or foreign multi families with pooled money. again they could not compete.

 

[Tin Roof]

No shit. Every single time I hear some boomer say "well my kid is X age and owns his own home" they fail to mention they either let them live at home while they saved the money up or gave them the down payment for it.

Gen X is doing this for their kids also. A lot of them, at least in the midwest.

I know very few boomers that didn't tell their kids they had to leave the house right after high school.

Make sure you get your generations correct.

 

[Slander]

No shit. Every single time I hear some boomer say "well my kid is X age and owns his own home" they fail to mention they either let them live at home while they saved the money up or gave them the down payment for it.

Yup. Now I'm not judging as my parents (boomers) paid for my college, which was awesome, but that was basically the stated goal of my mom working from the time we were born.

I ran some clacs and I bought my first house in 2010 at 26, for $215k, I was making around $60k and my gf at the time who I bought the house with was making around $50k. Adjusted for inflation that 60k comes out roughly to what OP kid makes. I was working a shit job being covered in aircraft fuel all day and getting yelled at by flight crews, so I stand by my assessment that his kid needs a better job as he's underpaid, that or find someone to buy a house with

 

[Stingray]

No shit. Every single time I hear some boomer say "well my kid is X age and owns his own home" they fail to mention they either let them live at home while they saved the money up or gave them the down payment for it.

Your option would be?

Keep my money and tell the kid suck it up? Drop $4k a month in rent? as a parent it seems like a good investment.

And he owns shit right now, he has 359 more payments to make.

 

[rockota]

No shit. Every single time I hear some boomer say "well my kid is X age and owns his own home" they fail to mention they either let them live at home while they saved the money up or gave them the down payment for it.

so?

What's wrong with that? See so many people get pissy about "yeah, but x,y,z"... and those x,y,z are things anyone can do, but choose not to, then get annoyed that outcomes are different.

 

[Slander]

so?

What's wrong with that? See so many people get pissy about "yeah, but x,y,z"... and those x,y,z are things anyone can do, but choose not to, then get annoyed that outcomes are different.

On the surface nothing, it's when it can be perceived as judgemental or comparison to peers in a different spot. "Hey my kids a hard worker and saved a ton of money, unlike the rest of his generation..... I mean yea we paid for $30k a year of his expenses, but he's smart with money" type stuff.

 

[JD Mark]

We had 2 years from graduating college to move out. If not, we would have been moved out.

We also had to pay for college if we wanted to continue post-high education.

 

[rockota]

On the surface nothing, it's when it can be perceived as judgemental or comparison to peers in a different spot. "Hey my kids a hard worker and saved a ton of money, unlike the rest of his generation..... I mean yea we paid for $30k a year of his expenses, but he's smart with money" type stuff.

But Stingray didn't say any of that... And so what if he did? Again - choices. Everyone can make them, few want to.

I bought my first house at 22... $110k/6.5% FHA ARM. I had to have a roommate to make the payment. But it was cheaper than rent.

 

[Motorcharge]

Gen X is doing this for their kids also. A lot of them, at least in the midwest.
I know very few boomers that didn't tell their kids they had to leave the house right after high school.
Make sure you get your generations correct.

Younger Gen X, older Gen X tends to be more boomer like. My dad is technically Gen X, but is very, very boomer in his thinking. I got booted the hell out immediately when I graduated high school. It's taken a long time for him to come around to the fact that you can't just walk into a business, shake someone's hand and land a life long job that pays well, with good benefits and retirement like he did.

Your option would be?

Keep my money and tell the kid suck it up? Drop $4k a month in rent? as a parent it seems like a good investment.

And he owns shit right now, he has 359 more payments to make.

I'm not judging you for doing it, just pointing out that's it's a completely different situation to point to your son and act like anyone can do it when you've created a situation that not everyone can have. That's becoming more and more common because it's necessary, but it definitely wasn't really an option for most older millenials who are now in their late 30s or early 40s.

 

[Slander]

So some how my 24 year old kid has beat the odds, he graduated high school didn't go to collage, got a great job and somehow managed to save 250K and buy a house in Southern Ca. in 19 days him and his fiancée will be married and moving in, All of that gives me the cold sweats,

Tomorrow will be my last day of employment ( Retired after a 40 year career) And hopefully set for life.

My fear for my kids success is insane,

But Stingray didn't say any of that... And so what if he did? Again - choices. Everyone can make them, few want to.

I bought my first house at 22... $110k/6.5% FHA ARM. I had to have a roommate to make the payment. But it was cheaper than rent.

Somehow somehow somehow, leaves out the part where he got a shit load of costs covered. Not judging, just left out a bunch of context, and of course he would beat the odds against peers who are paying for food and rent making the same $$$.

 

[rockota]

Somehow somehow somehow, leaves out the part where he got a shit load of costs covered. Not judging, just left out a bunch of context, and of course he would beat the odds against peers who are paying for food and rent making the same $$$.

again... so what?

the "yeah, but...." gets out of control in this world.

My parents paid for 2 years of college. I borrowed the rest. Guess what? I paid that off with life insurance money when Dad passed away. I also bought a Marlin Ultimate with that money. Does that make it any different? Nope... BFD.

 

[mobil1syn]

consumerism has taken over the housing market.

contractors get paid per sqft, the people want giant houses, the banks will lend them as much money as they want, and then they upgrade every 5-7yrs, especially when interest rates drop and you can increase the size of your house while keeping the payment close to the same.

the idea you can raise a family of 5 in 1300-1600 sqft is inconceivable to most people.

in the high appreciation markets (ca like the OP) people are not going to give up 2-3x returns on the purchase price to help the a first time buyer out, especially when mom/pop die leaving the house to the kids who dont care about the neighborhood and just want as much cash as possible.

thewife and i are doing our best to have cash set aside for our kids to have no student loan debt and down payment assistance to give them a head start on life. living in our dumb 1400sqft home is the way we make that happen, as much as i want something nicer, bigger, etc. i have to play the long game, which at the moment feels like im losing.

1970
> Avg. floor area of a new single-family home: 1,500 sq ft
> Avg. floor area per person: 478 sq ft

1980
> Avg. floor area of a new single-family home: 1,740 sq ft
> Avg. floor area per person: 630 sq ft

1990
> Avg. floor area of a new single-family home: 2,080 sq ft
> Avg. floor area per person: 791 sq ft

2000
> Avg. floor area of a new single-family home: 2,266 sq ft
> Avg. floor area per person: 865 sq ft

2010
> Avg. floor area of a new single-family home: 2,392 sq ft
> Avg. floor area per person: 924 sq ft

 

[dntsdad]

six decades of establishment politicians.

Well damn. I am glad that you enlightened me into who I voted for during the last six decades even though I haven't been alive that long nor could vote during that time period.

I can always look to you for knowing everything while knowing nothing.

Thanks for voting for all the "non-establishment" candidates that come up every cycle. You are a national treasure to be sure.

 

[Slander]

again... so what?

the "yeah, but...." gets out of control in this world.

My parents paid for 2 years of college. I borrowed the rest. Guess what? I paid that off with life insurance money when Dad passed away. I also bought a Marlin Ultimate with that money. Does that make it any different? Nope... BFD.

If I'm talking about the financial genius of my offspring or myself and leaving out swaths of details, that kind of matters.

We are DINKS for example, that would be like me giving financial advice and money saving strategies to people with kids, I don't have insane costs to deal with. Or talking about how my peer group with kids can't afford this or that and Im some sort of a savant.

 

[dntsdad]

again... so what?

the "yeah, but...." gets out of control in this world.

My parents paid for 2 years of college. I borrowed the rest. Guess what? I paid that off with life insurance money when Dad passed away. I also bought a Marlin Ultimate with that money. Does that make it any different? Nope... BFD.

Yep, fuck looking back I wish I would have done the same for my kid honestly.

 

[Stingray]

Somehow somehow somehow, leaves out the part where he got a shit load of costs covered. Not judging, just left out a bunch of context, and of course he would beat the odds against peers who are paying for food and rent making the same $$$.

I didn't get him the job he has, I don't hold his hand and make sure he works long hrs, I don't manage his saving or checking. So yes I had a hand in his success, but his high school friends have very similar situations and are not doing the same things.
Most are living at home complaining about how tough things are. Most of them have a higher financial standing than my wife and I.

 

[Motorcharge]

again... so what?

the "yeah, but...." gets out of control in this world.

My parents paid for 2 years of college. I borrowed the rest. Guess what? I paid that off with life insurance money when Dad passed away. I also bought a Marlin Ultimate with that money. Does that make it any different? Nope... BFD.

Because it's relevant when you're making the argument that if your son can do it, anyone can. The monthly payment isn't the hard part of buying a house for most people, it's saving 20% for the down payment when that 20% is what a fucking house used to cost. It's a completely dishonest argument when the kid you're comparing to others didn't have to save that 20% on top of having to pay full rent, utilities, and food.

 

[gunracer1]

its all poor me bullshit. when i was in the navy. i had a e4 that had been in 3 years save up 50K dollars in 1986. if you want it, you make it happen.
i was in 4 years, when i got out as an E5, i had a duffle bag, a wrecked motor cycle and a hangover.

 

[Grnjp92]

Because it's relevant when you're making the argument that if your son can do it, anyone can. The monthly payment isn't the hard part of buying a house for most people, it's saving 20% for the down payment when that 20% is what a fucking house used to cost. It's a completely dishonest argument when the kid you're comparing to others didn't have to save that 20% on top of having to pay full rent, utilities, and food.

That said, it's your money and helping your kids with a hand up is good. I too hope to help mine with the necessary financial help to make her successful.

 

[dntsdad]

its all poor me bullshit. when i was in the navy. i had a e4 that had been in 3 years save up 50K dollars in 1986. if you want it, you make it happen.
i was in 4 years, when i got out as an E5, i had a duffle bag, a wrecked motor cycle and a hangover.

So there is no issues with housing costs?

Its all that everyone is just lazy?

In 1986, my mom and stepdad bought a house in a good neighborhood with great schools. He drove a cement mixer and she worked in a small equipment rental place doing the books.

2 adults and 3 kids in the house. They owned the house, we took vacations. My stepdad drove a square body 4x4 Chevy that was pretty nice for 80s standards. Mom drove a 79 CJ5. We were not rich but I don't remember eating dirt for dinner.

That could have today? Not a chance.

 

[gunracer1]

So there is no issues with housing costs?

Its all that everyone is just lazy?

the issue is the fucking government printing fucking money. yes houses cost more, but they are still very attainable. maybe not in san francisco or some other faggotry cali coast area.

 

[Mikel]

the issue is the fucking government printing fucking money. yes houses cost more, but they are still very attainable.

It wouldn't be as much of a problem if EVERYTHING else didn't get stupid expensive.

 

[zlathim]

Because it's relevant when you're making the argument that if your son can do it, anyone can. The monthly payment isn't the hard part of buying a house for most people, it's saving 20% for the down payment when that 20% is what a fucking house used to cost. It's a completely dishonest argument when the kid you're comparing to others didn't have to save that 20% on top of having to pay full rent, utilities, and food.

Fair enough, but what about when you compare said kid with another kid who also didn't have to pay for rent and food, but pissed away all of his spending money instead of being forward thinking and saving for his future?

 

[Stingray]

I've derailed the original post, I was just popping off about my kid.

We watched some of the same things happen. The average has a very tough time buying a house, all of the "leg up" programs are not set up for the average citizen. Unless you have an asterisk next to your name. you don't get any help.

 

[Slander]

Fair enough, but what about when you compare said kid with another kid who also didn't have to pay for rent and food, but pissed away all of his spending money instead of being forward thinking and saving for his future?

That's called a failure of parenting.