Are Mortgages Really Unaffordable Now?
Or do we all just need to work harder?
There’s a generational divide when it comes to attitudes to home ownership, in the U.S. and now, increasingly, across the globe. Many millennials are complaining that they’ll never be able to afford a home, at least not in the big cities that their jobs tie them to. Boomers insist they just need to work harder (and stop ordering that avocado toast).
The youngsters hit back, often with math. If they’re spending 20 bucks a week on avocado toast, and houses in their city cost $800,000, giving up the toast means they’ll be proud house owners by the time they’re 798 years old.
The older folks point out that starter homes don’t cost $800,000 and you only need a deposit to get started. The millennials argue there are no starter homes. They’re all owned by landlords (or Real Estate Investment Trusts) that charge such extortionate rent that saving for that deposit becomes more challenging than boomers can even imagine.
The arguments go round and round, but is it really possible to buy a house as a young employee these days? Have mortgages become unaffordable on current wages? And does it depend on where you live?
The answer to the last question is a definite yes. I’ve written before, about how there are places in the U.S…
