Housing is no longer a goal for the next generation

[Uruhara]

Housing prices keep rising, but wages haven’t kept up. For many young people, owning a home is no longer a realistic goal -  it’s becoming a luxury.

What used to be a natural part of adult life has turned into a debt trap or simply a fantasy. More and more young people are realizing that buying property under current conditions makes little financial sense.

We're witnessing a shift: instead of saving for a home, people are turning to alternative assets, remote lifestyles, or simply accepting long-term renting.

Is this the beginning of a structural economic change - or just another bubble waiting to pop?

Yes, there are many people who think like that. But there are also many young people who have simpler aspirations, like building their dream home for themselves and their families to live in, and for their children and grandchildren to grow up in. And in my area, young people still have simpler aspirations, like wanting to build or buy a house before or after they get married. As for luxuries and other tertiary needs, those usually follow after primary and secondary needs have been met.

Perhaps it's because my area isn't a major city yet. Rather, it's just a small town on the outskirts of the capital, so young people here still think the same as previous generations: owning land and a home is paramount. Meanwhile, in metropolitan areas like the capital and other major cities, I've encountered many people who prefer renting to buying. They don't want the hassle of home renovations or the hassle of owning their own home. Instead, they prefer things to be relatively practical.

[tabas]

Housing is a paradox.

More homes must be constructed to reduce market prices through increased supply.

But there is no incentive to build additional homes when consumers cannot afford current market prices.

Materials cost is also increasing, and that's why it's not ideal, and there is no incentive for the builders and the government to build more. Rich migrants also that invest in housing and buy a lot of properties makes the demand higher. And so, the rents are also expensive and there's no way for the younger generation that are starting from the bottom line is able to afford these tremendous and expensive houses.

Instead, what will happen is residents will flock to nearby states and regions with lower average cost of living.

That's what is happening and not just in states that have lower cost of living but also in countries where their money can make them live like a king.

[armanda90]

Housing prices keep rising, but wages haven’t kept up. For many young people, owning a home is no longer a realistic goal -  it’s becoming a luxury.

What used to be a natural part of adult life has turned into a debt trap or simply a fantasy. More and more young people are realizing that buying property under current conditions makes little financial sense.

We're witnessing a shift: instead of saving for a home, people are turning to alternative assets, remote lifestyles, or simply accepting long-term renting.

Is this the beginning of a structural economic change - or just another bubble waiting to pop?

Exactly what happen in my country Indonesia housing price keep rising drastically but wages or salary havent kept up although you have several side job, lower payment salary and land property keep increasing year by years make us difficult how to manage well to build dreaming house right now. Young people have dreaming can build up house before marriage but its not easily if can get good work pay us higher salary payment, drastically significant increasing of housing prices if build up at city.
Good solution right now how to manage housing price keep rising just get rent month by month until have enough money to build house, I think it is not easy to dream of owning a house nowadays with the price being quite expensive plus the income from a salary that is not that big. Keep build up or allocated for saving money to build house start few percent spent from salary in daily or monthly until enough using for building great house.

[silpersurfer]

Even more distressing, in some areas, house payments exceed their monthly income. So, how can they afford a home, even with mortgage payments? Ultimately, they are forced to rent to find a place to live, sometimes having to wait in long lines for a bathroom, as not all rental properties have bathrooms.

Ultimately, the rich get richer while the poor get poorer. The rich continue to build properties to rent to the poor, while the poor struggle to pay the monthly rent, let alone build a house. It's no surprise, then, that many young people are willing to torture themselves by working multiple jobs and working part-time. They are willing to sacrifice their leisure time in order to escape their hardships and achieve the freedom they have always dreamed of.

[Ultegra134]

It sounds a bit harsh but I agree with you, this is serious ignorance. Real estate prices have increased significantly in recent years mainly due to currency devaluation, supply-demand imbalance, high demand while real estate supply is limited. At the same time, inflation is making life more and more difficult for people, with many struggling to even afford basic daily meals. Therefore, owning a house has become a luxury, even if they save their whole life they can never own it.

This is why owning a home/property is becoming a luxury and expensive these days.

Thank you! It's pure ignorance, as shown by the graph you posted, housing prices have tremendously increased, while the average wage has merely increased, thus, it's almost impossible to purchase a house nowadays, unless you inherit one from your parents etc.

Look, even it's more difficult, it doesn't mean impossible.

The new generation make it like impossible because they can't save much money, the old generation can maintain their lifestyle like the first time they work in low income jobs but the new generation aren't.

The old generation was easier to earn money from jobs, but they're difficult to invest their money.
The new generation is harder to earn money from jobs, but they're easier to invest their money.

Just searching on google and we can invest in any assets we want, if they invest all in Bitcoin, the new generation can outperform the old generation.

It is not impossible, but I'm not buying the excuse the previous user said, that it's because our generation is buying expensive coffees and is being irresponsible. Some of us may be, that's true, but you can't put us all in one basket and claim that this is the reason we're not aiming at buying a house anymore.

Old generations could easily buy a house just by working a job, nowadays you need to be making serious cash in order to afford one.

[Outhue]

Housing prices keep rising, but wages haven’t kept up. For many young people, owning a home is no longer a realistic goal -  it’s becoming a luxury.

What used to be a natural part of adult life has turned into a debt trap or simply a fantasy. More and more young people are realizing that buying property under current conditions makes little financial sense.

We're witnessing a shift: instead of saving for a home, people are turning to alternative assets, remote lifestyles, or simply accepting long-term renting.

Is this the beginning of a structural economic change - or just another bubble waiting to pop?

Well said, but working hard and investing too doesn't guaranteed that they will build a house, remember that every investments come with high risks too, if I am wrong many investors would have become successful, along the way something unexpectedly happen.

If just investing will solve all these problems what happened to millions of investors that's been investing since many years ago? Today why aren't they millionaires already? It is simple, life happened to them, and that is, we can't all become a winner.

You can hate this point of mine, many people tried to be rich and till date they still failed, I  not trying to discourage you but with the little I knew it is impossible for all of us to become rich, with investments or not.

[Akbarkoe]

People that I know still wish to become successful in life and build home. At least if it is not a big one, but they do not want to continue paying for rent, and which is very good.

House is still a goal but maybe where you are living is different from where I am living. People still want home of themselves in my country. Even people that are not rich still find all means to build their own house if possible they can do it.

Of course, a home is the initial foundation for survival, as it's the longest resting place in life. If we don't have a home, when we can no longer work, we'll be evicted and likely end up living on the streets, a sad thing to imagine.

However, with housing becoming increasingly expensive, there's no other way to save money. It's better to rent first than to pay off a house, which we have to pay to the bank with very high interest. I find it painful to do so.

[Egii Nna]

Even more distressing, in some areas, house payments exceed their monthly income. So, how can they afford a home, even with mortgage payments? Ultimately, they are forced to rent to find a place to live, sometimes having to wait in long lines for a bathroom, as not all rental properties have bathrooms.

Ultimately, the rich get richer while the poor get poorer. The rich continue to build properties to rent to the poor, while the poor struggle to pay the monthly rent, let alone build a house. It's no surprise, then, that many young people are willing to torture themselves by working multiple jobs and working part-time. They are willing to sacrifice their leisure time in order to escape their hardships and achieve the freedom they have always dreamed of.

Housing is indeed one of the top major problems of the poor in the whole world and it’s becoming more complicated over time which is really rising concern about the possibility of everyone owning a little crib to call home. Even building a small house is now literally an expensive thing to do because owning a land is the primary factor for building a house.

The rich considers owning rental properties as ways to increase their wealth is one of the reason why pooor people still can own a house, let take for instance a land listed for sale at a price of $1k in a good location are both wanted by the rich and the poor, the rich wants to build a rental apartment while the poor wants to build his house. The rich will try his possible best to acquire the land even if it cost more than the asking price and so the seller will sell it to the rich because the rich possibly added more money on the original value of the land.
The and many more factors are the primary reason why the poor finds it difficult to own a house so they rather settle for rentals.

[harapan]

Housing prices keep rising, but wages haven’t kept up. For many young people, owning a home is no longer a realistic goal -  it’s becoming a luxury.

What used to be a natural part of adult life has turned into a debt trap or simply a fantasy. More and more young people are realizing that buying property under current conditions makes little financial sense.

Honestly speaking the rate at which rent is increasing in my country is so alarming and sometimes i wonder how one will get pass through this, and  it's making life uncomfortable and uneasy for the poor. Cause everything keeps going to the high side sometimes i wonder if there's hope to own ones property.

[dezoel]

It sounds a bit harsh but I agree with you, this is serious ignorance. Real estate prices have increased significantly in recent years mainly due to currency devaluation, supply-demand imbalance, high demand while real estate supply is limited. At the same time, inflation is making life more and more difficult for people, with many struggling to even afford basic daily meals. Therefore, owning a house has become a luxury, even if they save their whole life they can never own it.

This is why owning a home/property is becoming a luxury and expensive these days.

I mean it is simple mathematics. There isn't really anything "opinion" based in mathematics, numbers do not have an opinion. A median household income in the USA is 70k dollars. Considering taxes and what not, that would mean about 5k dollars per month. Median house price is around 370k dollars right now in the USA, which means that it requires you to save half of your wage, for over 10 years, to be able to buy a house.

We are talking about spending only 50% of your income, saving 50% of your income, and you still get to buy one, after 10+ years. At which point house prices will be higher of course. If you save for 2 years, and have 70k, you can put down 20% of the same house, and then pay about 4k per month, which is nearly all of your income, for 10 years, to buy the same house.

So as you can see, it is not financially possible. Even if you never drink any coffee. Mathematically, it is impossible. These calculations are based on "median", not for rich folks, of course there are people who earn more, they can, we are talking about "average American" here.

[GigaBit]

Housing prices keep rising, but wages haven’t kept up. For many young people, owning a home is no longer a realistic goal -  it’s becoming a luxury.

What used to be a natural part of adult life has turned into a debt trap or simply a fantasy. More and more young people are realizing that buying property under current conditions makes little financial sense.

We're witnessing a shift: instead of saving for a home, people are turning to alternative assets, remote lifestyles, or simply accepting long-term renting.

People of the current generation now prefer to give priority to their freedom. They do not want to be confined to one place. They do not want to see the dream of owning a house or flat now. They prefer to live in a rented house. Today, they can quickly change from one place to another after a few days. Earlier, the younger generation used to arrange their employment in one place and build a house or flat to live there permanently, but in the case of people of this generation, as the stability of work is less, they also worry less about buying a house or flat. They think that buying a house or flat with so much money is not worth it. Moreover, some do not want to take such a big risk. That is why they think that renting a house or flat is suitable for them.

[coupable]

Is this the beginning of a structural economic change - or just another bubble waiting to pop?

To avoid paying high rent, most people would prefer to own their own houses. Real estate could act as a hedge in my country, where inflation is high and there are no other investments opportunities in a developping country.
It's not just about money to own a house; freedom and comfort are also important. Owning your own home provides you with privacy and peace of mind because people who offer houses for rent can be difficult to deal with. So, since houses are regarded highly as an inheritance in my country, it should come as no surprise that the majority of parents wish to acquire additional residences, even as a retirement plan.

This is not applying to all if someone is having good job with high salary he still loves to live on rent instead of having own home because this is now expensive even not affordable for many while if someone try he had to be bounded huge funds for this which are not ideal.
Few decades back having home or luxury flat was social Simbel but now its changed peoples love to live freely and want to have money in investment or trading which give them better income, and they can live much better life developing countries are also now turning into this concept.
Few countries are having too much migration from rural to big cities which are also creating chaos while few countries where things are balanced its also problem which encouraging peoples to live on rent and keep things more manageable with money.

I guess you are talking about lifestyle in some countries, while i mean the concept adopted in middle classes whatever the country. Let me give you a clear example of my country which is a developping country that has a lot of economic problem causing poverty and jobless. Despite this, and as a small country where about 10 millions living in about 162k klm², my country is considered one of the best rates of citizens living in their own houses. A great majority owns more than one house and here i am talking about the majority which is middle to upper class. How to classify it according to your analysis?

[MarjorieZimmermanGinger]

People of the current generation now prefer to give priority to their freedom. They do not want to be confined to one place. They do not want to see the dream of owning a house or flat now. They prefer to live in a rented house. Today, they can quickly change from one place to another after a few days. Earlier, the younger generation used to arrange their employment in one place and build a house or flat to live there permanently, but in the case of people of this generation, as the stability of work is less, they also worry less about buying a house or flat. They think that buying a house or flat with so much money is not worth it. Moreover, some do not want to take such a big risk. That is why they think that renting a house or flat is suitable for them.

If they're single this might be a much better option, but once they're married and have kids, moving isn't the solution anymore, as there are many other things to consider, like school and work. I feel more comfortable living in my own home than renting, and the process can be simpler since there's no rent or frequent moving. There's nothing wrong with building your own home, as even a small one can make your life more comfortable and peaceful. While some people may have their own views on this issue, for me personally it's better to live in my own home even if it's small..

[Inwestour]

If they're single this might be a much better option, but once they're married and have kids, moving isn't the solution anymore, as there are many other things to consider, like school and work. I feel more comfortable living in my own home than renting, and the process can be simpler since there's no rent or frequent moving. There's nothing wrong with building your own home, as even a small one can make your life more comfortable and peaceful. While some people may have their own views on this issue, for me personally it's better to live in my own home even if it's small..

This is already another stage, when children appear, moving becomes more difficult, because they have friends, kindergarten, school, environment, hobbies and for children it is all much more difficult. But there are such people for whom changing location is much easier than for other people. I think that most often their own home will be a priority for a young family, especially when they decide to have children. But I do not see any difficulty in selling the home and moving to another place and buying a home where they are moving.

[Accardo]

Even more distressing, in some areas, house payments exceed their monthly income. So, how can they afford a home, even with mortgage payments? Ultimately, they are forced to rent to find a place to live, sometimes having to wait in long lines for a bathroom, as not all rental properties have bathrooms.

Acquiring a house gets harder day by day for young people and even those who wish to stay with their parents are being told to pay rents too. The debate had been a huge one last year, why would parents add to the bills of their kids. Low opportunities and high cost of living is dealing with this generation but the next one to come I bet you won't have much problem with it. Because the internet and Bitcoin age would offer jobs and businesses to them at an early stage of life.

[Juicyhome]

Even more distressing, in some areas, house payments exceed their monthly income. So, how can they afford a home, even with mortgage payments? Ultimately, they are forced to rent to find a place to live, sometimes having to wait in long lines for a bathroom, as not all rental properties have bathrooms.

Acquiring a house gets harder day by day for young people and even those who wish to stay with their parents are being told to pay rents too. The debate had been a huge one last year, why would parents add to the bills of their kids. Low opportunities and high cost of living is dealing with this generation but the next one to come I bet you won't have much problem with it. Because the internet and Bitcoin age would offer jobs and businesses to them at an early stage of life.

That is right, the future will be bright for our children, they won't have to struggle the way our parents and what we're seeing today. Bitcoin and content money will be enough for them to pay any bills, they won't  have to build house or rent, they will just buy house of their choice the future is bright with bitcoin and content creation.

Right now, rent and buying of land to build are really hard on us, it's not really easy for us out there especially when you were not born into a rich family. one has to grind hard to foot bills, then, you still have some parents that add to our pressure, but no matter what head up and keep doing all you can to buy and hold Bitcoin for your kids.

[Macro Exchange]

Housing prices keep rising, but wages haven’t kept up. For many young people, owning a home is no longer a realistic goal -  it’s becoming a luxury.

What used to be a natural part of adult life has turned into a debt trap or simply a fantasy. More and more young people are realizing that buying property under current conditions makes little financial sense.

We're witnessing a shift: instead of saving for a home, people are turning to alternative assets, remote lifestyles, or simply accepting long-term renting.

Is this the beginning of a structural economic change - or just another bubble waiting to pop?

Exactly what happen in my country Indonesia housing price keep rising drastically but wages or salary havent kept up although you have several side job, lower payment salary and land property keep increasing year by years make us difficult how to manage well to build dreaming house right now. Young people have dreaming can build up house before marriage but its not easily if can get good work pay us higher salary payment, drastically significant increasing of housing prices if build up at city.
Good solution right now how to manage housing price keep rising just get rent month by month until have enough money to build house, I think it is not easy to dream of owning a house nowadays with the price being quite expensive plus the income from a salary that is not that big. Keep build up or allocated for saving money to build house start few percent spent from salary in daily or monthly until enough using for building great house.

get you - same situation in many places, not just Indonesia.
Wages stay flat while housing costs explode. Even with side gigs, saving feels pointless.
Owning a home used to be normal-  now it’s a luxury.

Maybe this isn’t a bubble… maybe the system’s just broken.

[silpersurfer]

...............................

The rich considers owning rental properties as ways to increase their wealth is one of the reason why pooor people still can own a house, let take for instance a land listed for sale at a price of $1k in a good location are both wanted by the rich and the poor, the rich wants to build a rental apartment while the poor wants to build his house. The rich will try his possible best to acquire the land even if it cost more than the asking price and so the seller will sell it to the rich because the rich possibly added more money on the original value of the land.
The and many more factors are the primary reason why the poor finds it difficult to own a house so they rather settle for rentals.

Yes, this story has become a hot topic on several social media platforms and in this forum. Rent prices are rising while the economy is in dire straits, including the low minimum wage, which is insufficient to support their needs.

Acquiring a house gets harder day by day for young people and even those who wish to stay with their parents are being told to pay rents too. The debate had been a huge one last year, why would parents add to the bills of their kids. Low opportunities and high cost of living is dealing with this generation but the next one to come I bet you won't have much problem with it. Because the internet and Bitcoin age would offer jobs and businesses to them at an early stage of life.

The digital age and the internet have opened up ample opportunities for young people to earn money from home, providing them with the opportunity to earn income despite the difficulty of finding work. However, it's a shame that only a small number of young people are able to take full advantage of this advancement.

The advent of Bitcoin and cryptocurrencies offers many opportunities for profit, but it's also regrettable that many young people are still unaware of this and are struggling to learn about it.

[alastantiger]

Housing prices keep rising, but wages haven’t kept up. For many young people, owning a home is no longer a realistic goal -  it’s becoming a luxury.
What used to be a natural part of adult life has turned into a debt trap or simply a fantasy. More and more young people are realizing that buying property under current conditions makes little financial sense.

Everything is now expensive hence owning a home isn't something that everybody can now do. For those that can't afford it, it isn't worth it hence we shouldn't be feeling less important of ourselves if we can't afford a home. We can always rent and live comfortably. Owing a home can be a liability to you because you get to spend money keeping the house in order and running. The next generation don't have the patience of those in the past generation hence keeping a family together is going to become a major problem for the next generation. With the high rate of divorce, owning a home as a family isn't making sense anymore because after the separation, the house can't be divided among the once spouse, only one gets to keep it.

[SUPERSAIAN]

Buying a home is everyone's dream, and for many, it's one of their primary goals throughout their lives. Today, housing prices are extremely high worldwide, mortgage rates are unaffordable, and housing prices are constantly rising, especially if you live in a big city. Most of your income goes to rent, making it impossible to buy a home.

As housing prices rise, I understand why people are no longer interested. As prices rise, demand decreases. Naturally, because housing is a basic need, it will always be a goal for people, even if demand declines.