Will they ever be able to afford a house?

[oktana]

Right from when I read “internships or low paid job”, I started sensing that you may be siding with the way things were in the 1980. First, I’m not sure if the average gen z does internships. Second, what you wrote for gen z age 35 is really personal . Because why would you consider that the average gen z will divorce their partner? And then what you did again at age 50. In case you have forgotten, getting divorced started before gen z, low paying jobs were there too back in those days. In fact, if you speak to the grannies they will tell you how much suffering they went through. But today, we can see very young gen z making a lot of money. Aren’t they the ones cluttering the internet as influencers?

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[panganib999]

Let's study the case of an average representative Gen Z and X. What is important or missing in the description (linked below)? What would you advise?

https://docs.google.com/spreadsheets/d/e/2PACX-1vRXBY1HDRX9R555CtDvJ31uYbXBHuVlGSfdGOT3JtzAnwR4gms2Ltqgx9K5EhYAg8WA0uk-knhVHB3o/pubhtml

Short answer: they won't be able to afford things that GenXs and GenYs would be able to. House, Cars, heck I reckon most of them including those that live in the US will die paying off their student loans cause Gen Zs get paid shit, for jobs that give them the most stressful work profiles and settings. Most Gen Z people nowadays have to work 2-3 jobs just to get by. Not to mention the worsening state of the environment, microplastics in blood and in babies. We're literally at the end of times at this point.

What I could advise those who are sadly in this position is to either look for high-paying careers instead of sticking to whatever they think is their forte, cause at this point in our lives you really have no choice if you want to live and survive. You also would need to look into ways to passively earn income like cryptocurrency, investing, or other ways.

Right from when I read “internships or low paid job”, I started sensing that you may be siding with the way things were in the 1980. First, I’m not sure if the average gen z does internships. Second, what you wrote for gen z age 35 is really personal . Because why would you consider that the average gen z will divorce their partner? And then what you did again at age 50. In case you have forgotten, getting divorced started before gen z, low paying jobs were there too back in those days. In fact, if you speak to the grannies they will tell you how much suffering they went through. But today, we can see very young gen z making a lot of money. Aren’t they the ones cluttering the internet as influencers?

There's a study that says the rate at which partners divorce are increasing every generation, so while the age itself isn't necessarily apparent, there is some truth to OP's statement. Plus Gen Zs do take apprenticeships/internships, but unlike back in the days where even if you don't get paid you get support in some way or another, all you get from modern internships now is nothing but a pat on the back and a certificate that says you're able to do the job.

[tabas]

IMHO, life was easier before than of today. You can even own house easier before because of the economies were not too tight and problematic than today. Today, if you go and see in most countries or just watch some videos related to real estate. Many of the current generation will say that they can't afford to buy their own real estate and can't pay mortgage. Due to how expensive it is, they are choosing to just rent and let it be until they can have their own house in a rural area where lands are quite cheaper than from the city.

That's right, it's very different now and we can see how the world will change now than before, especially when there was covid. This is where everything changed or let's say it was the biggest contributor to change the world.

The price of houses will increase too much, and it is still rising.

To be honest, because of covid, I thought that everything is going to be cheap because with all of those demands have been dropped a lot when everyone was just at home and things were no longer desired but then I was wrong. Because when things have been back to normal, the demand have increased and this made most of the prices to shoot up again.

But there are still others who can buy and build a house as long as they work hard and persevere, nothing is impossible for a dreamer.

Yes, there's no doubt that many will still be able to buy their own houses but no longer the dream house that they've been planning. With the cost of construction materials, they've all increased as well. While in some countries, alternative options are made and readily available like the van and truck houses ready to go and the container vans as long as you've got the piece of land for this option. Anyway, it's all going to sum up on what can you afford and you can still live comfortably regardless of the option you do. As they say, there are many opportunities all around the world but you can't take all of them depending on the circumstances that you're dealing with. Well, many are all talk but don't see the actual situations of everyone.

[topbitcoin]

If we talk about the economy and technology, of course every year it continues to experience improvements and changes, the relationship between technology and the economy is very closely related, because technological development and progress will influence economic growth, and vice versa. In the past, to be able to get that money, someone had to leave the house and most of them worked relying on physical work. This is different from now, everything is practical and instant, and this can be realized because of technological developments and advances. However, this also causes some of the Gen Z generation to become lazy and not have their full potential. Even if you think about it again, with the presence of terkonlogi, someone will be able to generate income without having to leave the house. But for some reason some of them are really lazy to understand this.

[dansus021]

here is the thing bro the house price is really expensive, you can look at the chart from 1991 to this year the price is keep on climbing for regular job with low skill I do believe will be hard to get a single house

[pinggoki]

If you can consider housing loans as a form of being able to afford a house then I would say that the new generation will be able to afford a new house or even a rundown property and just restore it but that's still a problem because I do believe that the prices of properties are just so damn high right now and I don't think that it should be this way just to satisfy the greed of the real estate companies and moguls.

[Darker45]

The younger generation will probably have more difficulties. For one, the prices of houses have already increased a lot. The purchasing power of money has gone down so much.

And then there are others factors such as the increasing expenses. Younger people have so much expenses. Many youngsters now, even those who have decent salaries, can't afford to buy a house because they spend on so many other things. Gadgets alone are expensive and have to be replaced after a year or two.

In the past, people don't have iPhones and Macs and Television sets and PlayStations and Air Jordans to buy. Today, there are so many of them and they come as priorities.

[boty]

If you can consider housing loans as a form of being able to afford a house then I would say that the new generation will be able to afford a new house or even a rundown property and just restore it but that's still a problem because I do believe that the prices of properties are just so damn high right now and I don't think that it should be this way just to satisfy the greed of the real estate companies and moguls.

Taking out a housing loan is indeed an option for the current generation to be able to get a house because it is very difficult to be able to build a house if you don't have enough money to be able to build a house and if we decide to take out a housing loan of course we have to meet the requirements to be able to take out a loan because Without fulfilling these requirements, the real asset company will not provide a home loan.
In my opinion, it would be better for us to save to be able to build our dream house rather than taking out a housing loan and if we cannot pay it properly it will certainly be a problem for us.

[Porfirii]

If you can consider housing loans as a form of being able to afford a house then I would say that the new generation will be able to afford a new house or even a rundown property and just restore it but that's still a problem because I do believe that the prices of properties are just so damn high right now and I don't think that it should be this way just to satisfy the greed of the real estate companies and moguls.

Taking out a housing loan is indeed an option for the current generation to be able to get a house because it is very difficult to be able to build a house if you don't have enough money to be able to build a house and if we decide to take out a housing loan of course we have to meet the requirements to be able to take out a loan because Without fulfilling these requirements, the real asset company will not provide a home loan.
In my opinion, it would be better for us to save to be able to build our dream house rather than taking out a housing loan and if we cannot pay it properly it will certainly be a problem for us.

Well, at least we will live 5 years more (of pain) compared with the ones who bought a house in 1980

The funny fact is that I tried to explain more or less the same info to people from that generation and they don't agree that for younger people it is much more difficult to buy a house because of lower salaries and higher prices. In the past, if you saved for a few years you were able to cancel your mortgage and, if you wanted, start paying a second house, but today that's almost impossible and the first mortgage is usually designed to accompany you for your entire life.

So you are right: if you have the chance, save while you can (in the house of your parents for example) and try to borrow as little as possible.

[Kakmakr]

I think one of the problems with the new generation are the influence of social media. They see the large and expensive houses of their favorite streamers and they think they can have the same, without starting at the bottom.

The way to get to the top, is to start from the bottom. You start with a single room..  sell that and buy something bigger... then sell that and buy something even bigger than that... until you can afford to buy that dream house. By that time your salary might have increased enough for you to afford the rates and taxes. 

[Greg Tonoski]

1980 outlook:
Just do the work, no paperwork, no certificates (compare effort to obtain truck driving licence in 2023, work permit, opening restaurant etc.), no barriers other than competition.

Think again, maybe we just need to understand some of the sides this forum has been working on for years. Here you can "work" with anyone without contract documents, without expertise certificates, all on the basis of trust, transparency. And I'm sure that today the informal work space is developing where one can have an income like people used to, even faster just to get a house.

Good point. Technological progress opened up new opportunities for workers too. It's mostly illegal in one or the other jurisdiction and subject to (tax) paperwork overload yet relatively easy to get away with.

Only some of Gen Z and Gen X who can afford a house, while the vast majority aren't

True. Most people will not afford a house (irrespectively of generation) - that's the fact of life.

If still financial not stable yet don't buy house and hurt your financial condition, better living with small house not permanently before has own house in the future.

Are you able to tell when the future comes and how to get there? Going to university, getting a job, mortgage and married is not enough it seems.

So don't throw away your opportunity to be rich in the future by throwing away the opportunity of investing in real estate at a younger age.

While I understand that misuse of money is spoils a plan to afford a house, I think that there aren't opportunities of investing in real estate at younger age (little savings, impossible to buy 1/10 of a house). Could you suggest any, please??

The regulators could randomly visit businesses to see whether they are doing the right things, rather than whether they're certified.

Agree altough regulators go in the opposite direction as far as I can see.

Due to how expensive it is, they are choosing to just rent and let it be until they can have their own house in a rural area where lands are quite cheaper than from the city.

For some reason the "until they can have their own house" rarely happens even after the age of 40.

[Greg Tonoski]

Driving license, working permit, business permits, and all other licenses and permits to be eligible for someone to do the job is necessary. Even in the 80's all of that are present. So, I don't know what the sheet was trying to point out with that one.  You can't have someone drive your truck without the license, because that's one of the thing you need to look at to identify that he qualifies for the job.

The point was that it used to take orders of magnitude less effort to obtain licences, permits etc. For example, there wasn't theory test to obtain driving license. Not to mention differences in building regulations. As a result, gen Z may spend more time applying for licences, permits, education etc. than working and earning.

[Greg Tonoski]

Countless people are doing pretty well even today

I accept that argument yet disagree with the causation below.

because they have completed their studies, crafted their skills, and have great-paying jobs which makes them able to clear everything within a specific period instead of living their whole lives indebted, they buy their house, have savings, make investments, and live a great life after retirement.\

There are countless people doint pretty well today despite having not completed their studies, crafter their skills and so on. As a matter of fact, there are a lot of them who can't use computer, smartphone (except for taking pictures), aircon, beamer, screwdriver etc. Rent-seekers sitting on pile of legal titles to real estate, healthcare, pensions, education, housing, trademarks, business licenses (concessions, anit-competition protection schemes, charters defining privileges, monopoly) etc.

[Greg Tonoski]

Right from when I read “internships or low paid job”, I started sensing that you may be siding with the way things were in the 1980. First, I’m not sure if the average gen z does internships. Second, what you wrote for gen z age 35 is really personal . Because why would you consider that the average gen z will divorce their partner? And then what you did again at age 50. In case you have forgotten, getting divorced started before gen z, low paying jobs were there too back in those days. In fact, if you speak to the grannies they will tell you how much suffering they went through. But today, we can see very young gen z making a lot of money. Aren’t they the ones cluttering the internet as influencers?

"Couples going through their first divorce are around the age of 30. Married couples between the ages of 20 to 25 are 60% likely to get a divorce" https://divorce.com/blog/divorce-statistics/

Diveroce phenomenon and avoidance of marriage is too significant to be overlooked.

[DeathAngel]

The affordability of houses for young people is a complex issue influenced by various factors such as economic conditions, housing policies & personal financial situations. It is tough to predict the future with certainty, there are potential solutions that can help improve affordability like government initiatives, increased housing supply & innovative financing options. By addressing these challenges collectively it’s possible to create a future where young people have more opportunities to afford a house.

[mindrust]

here is the thing bro the house price is really expensive, you can look at the chart from 1991 to this year the price is keep on climbing for regular job with low skill I do believe will be hard to get a single house

This pic is the inflation chart.

Inflation is the expansion of the money supply and this chart reflects exactly that.

The more they print the more expensive everything gets.

If you want to fight this crap, buy the stuff which has limited supply and people will always need. Real estate, commodities, land... According to this chart, as long as you hold USD, you will be the sucker in the long term. In the short term, things may look a bit different since it is expensive to borrow money right now but sooner or later the FED will go dovish again.

In my previous post I said "avoid buying a house" mainly because of the high interest rates. If you have the cash, now is the time to get rid of it.

[icalical]

I haven't seen anyone post the table that is made by OP,

Let's study the case of an average representative Gen Z and X. What is important or missing in the description (linked below)? What would you advise?

https://docs.google.com/spreadsheets/d/e/2PACX-1vRXBY1HDRX9R555CtDvJ31uYbXBHuVlGSfdGOT3JtzAnwR4gms2Ltqgx9K5EhYAg8WA0uk-knhVHB3o/pubhtml

So here it is,


First thing first actually on the 80's people many people's are already going to the Universities, and there are a lot of jobs that are also required better degree or certification, just like nowadays there are many jobs that are also has lower entry point. The only different is the Real Estate price, people are hoarding houses, while the land area is not growing the population has growth and it's crowded together in certain area, this was utilized by housing speculators to hoard houses in the area and increasing the housing market price.

Now the question wether later generation could afford a house is depends on wether they want to buy a house far away from big city, that has cheaper price?

[0t3p0t]

This actually depends on what type of country we are in whether first world country or third world country because lifestyle and the way of living in these categories differ regardless of ages and generations. I find it biased when we look at the chart IMO.

[doomloop]

Even if they can they shouldn't, it's not an asset it is a liability and will do no good for you and your future but just make you trapped in paying mortgages for 20-30 years. Making money isn't easy but the ways to make money is more than before so one who figure out what way they can make then they can start living the luxury life they want in a short time like even in 5-10 years of complete hard work is enough.

I think a house is the same as real estate. And we know real estate right? Yes, it is a kind of investment. Whether you are planning to re-sell it soon, or have a space for rent, etc..., you name it. Not just house but even other things, like car, and mobile phones can be an asset too, as long as we know how to use them properly.

Paying mortgages has a duration (you already said it) so I won't say that we will get trapped because being trapped means endless. Making money and ways to make money sounds the same, so both are not easy. We can't tell what can happen in the future, so I won't set an exact date if when will I think experience to be wealthy.

[tabas]

Due to how expensive it is, they are choosing to just rent and let it be until they can have their own house in a rural area where lands are quite cheaper than from the city.

For some reason the "until they can have their own house" rarely happens even after the age of 40.

And that's a sign of how tough life is today and that's true that even with that age, it's hard to get their own house in the city and even on the rural areas, there's the hardship that can seen on today's generation. The mortgage and its interest are quite high and increasingly based on the government's response to the economical situation of a country.

This actually depends on what type of country we are in whether first world country or third world country because lifestyle and the way of living in these categories differ regardless of ages and generations. I find it biased when we look at the chart IMO.

Regardless of where you live, the houses and real estate prices have increased for most of the countries. And someone can barely afford it and while there are economical situations for everyone, the sellers of these properties are also taking advantage of it as they increase the prices way out of the srp.