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Why millennials are facing the scariest financial future of any generation since the Great Depression (1 Viewer)

Hawkeye21 said:
I'm really struggling with this with my 8 year old son.  He's really not good at trying to figure things out on his own and always wants help.  He gets way too frustrated trying to do it on his own and just quits.  It drives me crazy.
I've been struggling with this with my 7 year old son as well.  I don't think that its he's not good at figuring things out its just that he doesn't need to much these days.  So when he does have to take a few seconds to make something work it is unusual for him. 

Things these days seem to just be easier than they were 30 years ago.  Take installing a computer game for instance.  When I was 8, you had to acquire a stack of 3.5" floppy disks for some strange guy at the pizza hut during a computer swap meet, then you had to know DOS commands to unpack it all and get it installed.  Then you had to figure out how to play it cause there was no youtube video on how to play.  Now he just clicks a picture of the game he wants and it downloads and installs in minutes and is ready to play.  If he gets stuck he youtubes a video and is shown how to play.  Things are just easier in general now days and it might be to the detriment of our kids.

 
https://twitter.com/krangtnelson/status/943541143794569217

Childbirth Hospital Costs: $10,000
Daycare: $2,000 / month
Healthcare: $800 / month
Maternity / Paternity Leave: nope
Starter Home: $300,000
College: $100,000 / year
Average Millennial Salary: $30,000 / year


Why Aren't Millennials Having Children?


Wait a minute - are we talking "average" here?  Average Millenials don't pay $100,000 / year for college.  That is just nuts unless you come from money.  The average In-State tuition was around $10k (http://static.bangordailynews.com/wp-content/uploads/2015/11/cp-2015-f08.png) just a few years ago.  That chart is labeled "tuition and fees" but I'm not sure that is correct - seems too low.

The average Millennial couple wanting to have kids would reasonably have paid $60k each to get a decent degree in 4 years.  $120k total for the couple.  Assuming they at least had summer jobs and some help from the parents, their loan nut would be somewhere under 6 figures.  Making any of the available choices to keep costs down will further reduce the loan burden:  One or both lives at home during college, jobs during the school year, choosing the lowest-priced school consistent with education goals, etc.  There are grants and scholarships as well, but I'm not interested in digging too deep for the sake of what is supposed to be a simple example.  Let's just say our young couple graduates with a total of $60k in school loan debt.

As a couple they would be grossing $60k initially, but should be at $75k (inflation adjusted) in five years, $90k in ten, etc, assuming one of them doesn't (a) lose their job (bad) or (b) get promoted to an elevated pay track (good).  They should be able to pay that loan down in a timely manner assuming some basic employment stability.

A starter home shouldn't be over $200k in most parts of the country, and in fact could be significantly less.  That is untrue in the DC suburbs, but the average starting salary there is more than $30k mind you.  For the $200k mortgage figure $900 a month in P&I and $300 a month in T&I on a $200k mortgage at 3.75%.  $1200/mo or $15k annualy.  Biggest hurdle there is scraping together some kind of down payment, but requirements for first-time buyers are not too severe.  Or rent - more or less the same outflow.  They can afford both the house and paying off their loans if they practice sound budgeting.  And I stress, we are not talking about NYC living - that isn't average.  Young couple who try to make it there with big debt and lousy media-related starting salaries are nuts, and I suspect are the ones most often writing up these kinds of "poor me" complaints.

Are we talking about two 23 year olds in love that absolutely must have both a house and a baby right off the bat?  Yeah, that might be darn tough.  Nobody is asking the Millennials to have a kid that soon.  Might want to wait a few years to get settled regarding employment and housing.  Based on my fading memory, 25 years ago people did the same thing with regards to waiting to have kids until the late 20's typically.  Even back then, when starting out a couple could realistically do only two out of the three choices of buying a house, paying off loans, and having a kid.  A few years later, all three were possible.  It is never easy to do all three in your 20's but is doable.  Good idea to first learn how to live as an earning adult, gaining success at tier 2 achievements of meeting debts and owning property, before trying to get into the top tier of responsibility and cost of having a kid.

You can derail the above by saying degrees take more than 4 years (they don't have to), houses cost way more (they don't have to), working during school is impossible (it isn't), living some/all of the college years at home is unthinkable (your call, your nickel).  Maybe it is easier to fire off a pouting tweet and cherish the "special" nature of your particular victimhood than to just grind it out.

 
WTF?  That guy is only a year older than me and comes off as some young kid struggling to make it in the real world.  By 35 you should have your crap together for the most part.

I really think they should spend more time focusing on personal finance in high school before these kids head off to college and rack up debt.  It's really not that hard, just takes some knowledge and effort.
Yeah but they must have the latest I Phone, doesn't matter the cost...

 
https://twitter.com/krangtnelson/status/943541143794569217

Childbirth Hospital Costs: $10,000
Daycare: $2,000 / month
Healthcare: $800 / month
Maternity / Paternity Leave: nope
Starter Home: $300,000
College: $100,000 / year
Average Millennial Salary: $30,000 / year


Why Aren't Millennials Having Children?
Are these national averages?  I sometimes think that people out of college expect to have a high paying job and great house right away.  It takes a while.

Where are these people living where a starter home is $300,000?  How big of a house is considered a starter house?  I imagine there are cheaper homes available in other neighborhoods.

 
Hawkeye21 said:
Where are these people living where a starter home is $300,000?  How big of a house is considered a starter house?  I imagine there are cheaper homes available in other neighborhoods.
In my county (Maryland suburbs of DC), which is admittedly one of the priciest counties in the country, I'm not sure whether there is such thing as a $300K single family home. I just did a search on google and it all seems like either apartments or empty lots for that price.

ETA:  Wait!  I lied there are a few of them.

https://www.zillow.com/homes/for_sale/Montgomery-County-MD/house_type/37102093_zpid/2975_rid/0-300000_price/0-1120_mp/zesta_sort/39.280104,-76.896401,38.857354,-77.335854_rect/10_zm/2_p/0_mmm/?

https://www.zillow.com/homes/for_sale/Montgomery-County-MD/house_type/37073725_zpid/2975_rid/0-300000_price/0-1120_mp/zesta_sort/39.280104,-76.896401,38.857354,-77.335854_rect/10_zm/2_p/0_mmm/?

 
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In my county (Maryland suburbs of DC), which is admittedly one of the priciest counties in the country, I'm not sure whether there is such thing as a $300K single family home. I just did a search on google and it all seems like either apartments or empty lots for that price.
I can't imagine that's the average across the US though.  Those seem like very extreme cases.  Not every kids out of college needs to live in the most expensive cities in the US.  There are jobs everywhere.

 
I can't imagine that's the average across the US though.  Those seem like very extreme cases.  Not every kids out of college needs to live in the most expensive cities in the US.  There are jobs everywhere.
It depends what sort of job you want.  Every sort of job doesn't exist everywhere.

But yes, places like New York, San Francisco and D.C. are extreme examples.

 
proteus126 said:
Wait a minute - are we talking "average" here?  Average Millenials don't pay $100,000 / year for college.  That is just nuts unless you come from money.  The average In-State tuition was around $10k (http://static.bangordailynews.com/wp-content/uploads/2015/11/cp-2015-f08.png) just a few years ago.  That chart is labeled "tuition and fees" but I'm not sure that is correct - seems too low.

The average Millennial couple wanting to have kids would reasonably have paid $60k each to get a decent degree in 4 years.  $120k total for the couple.  Assuming they at least had summer jobs and some help from the parents, their loan nut would be somewhere under 6 figures.  Making any of the available choices to keep costs down will further reduce the loan burden:  One or both lives at home during college, jobs during the school year, choosing the lowest-priced school consistent with education goals, etc.  There are grants and scholarships as well, but I'm not interested in digging too deep for the sake of what is supposed to be a simple example.  Let's just say our young couple graduates with a total of $60k in school loan debt.

As a couple they would be grossing $60k initially, but should be at $75k (inflation adjusted) in five years, $90k in ten, etc, assuming one of them doesn't (a) lose their job (bad) or (b) get promoted to an elevated pay track (good).  They should be able to pay that loan down in a timely manner assuming some basic employment stability.

A starter home shouldn't be over $200k in most parts of the country, and in fact could be significantly less.  That is untrue in the DC suburbs, but the average starting salary there is more than $30k mind you.  For the $200k mortgage figure $900 a month in P&I and $300 a month in T&I on a $200k mortgage at 3.75%.  $1200/mo or $15k annualy.  Biggest hurdle there is scraping together some kind of down payment, but requirements for first-time buyers are not too severe.  Or rent - more or less the same outflow.  They can afford both the house and paying off their loans if they practice sound budgeting.  And I stress, we are not talking about NYC living - that isn't average.  Young couple who try to make it there with big debt and lousy media-related starting salaries are nuts, and I suspect are the ones most often writing up these kinds of "poor me" complaints.

Are we talking about two 23 year olds in love that absolutely must have both a house and a baby right off the bat?  Yeah, that might be darn tough.  Nobody is asking the Millennials to have a kid that soon.  Might want to wait a few years to get settled regarding employment and housing.  Based on my fading memory, 25 years ago people did the same thing with regards to waiting to have kids until the late 20's typically.  Even back then, when starting out a couple could realistically do only two out of the three choices of buying a house, paying off loans, and having a kid.  A few years later, all three were possible.  It is never easy to do all three in your 20's but is doable.  Good idea to first learn how to live as an earning adult, gaining success at tier 2 achievements of meeting debts and owning property, before trying to get into the top tier of responsibility and cost of having a kid.

You can derail the above by saying degrees take more than 4 years (they don't have to), houses cost way more (they don't have to), working during school is impossible (it isn't), living some/all of the college years at home is unthinkable (your call, your nickel).  Maybe it is easier to fire off a pouting tweet and cherish the "special" nature of your particular victimhood than to just grind it out.
The college costs are being referred to are for their future children.

The only way to $1200 on a 200k house is to put 20% down.

 
It depends what sort of job you want.  Every sort of job doesn't exist everywhere.

But yes, places like New York, San Francisco and D.C. are extreme examples.
Very true.  Not everyone needs a big city job but if they must there are more affordable large cities.  Flexibility can be very helpful and if you're not willing to be flexible then I guess you just have to accept what it is.

 
I can't imagine that's the average across the US though.  Those seem like very extreme cases.  Not every kids out of college needs to live in the most expensive cities in the US.  There are jobs everywhere.
So you are expecting a 23 year old to uproot their life and move across the country just to have a comfortable life? Doesn't seem especially reasonable to me.

The Denver area isn't much better than Maryland. I have a co-worker that just bought a house for $295k. The house is something like 800 sf upstairs and an 800 sf partially finished basement. Early 1950s build across the street from a handful of concrete plants in the worst school district in the metro area. Those are the only type of homes available for that kind of money anywhere near Denver. I think the average home price is approaching 500k.

The difference between Denver and the coasts is salaries are closer to the mid-west. The median salary to median home price isn't SF/NYC bad, but it's still unreasonable.

 
So you are expecting a 23 year old to uproot their life and move across the country just to have a comfortable life? Doesn't seem especially reasonable to me.

The Denver area isn't much better than Maryland. I have a co-worker that just bought a house for $295k. The house is something like 800 sf upstairs and an 800 sf partially finished basement. Early 1950s build across the street from a handful of concrete plants in the worst school district in the metro area. Those are the only type of homes available for that kind of money anywhere near Denver. I think the average home price is approaching 500k.

The difference between Denver and the coasts is salaries are closer to the mid-west. The median salary to median home price isn't SF/NYC bad, but it's still unreasonable.
Yes. It is far more reasonable than making it so every millenial gets to work in whatever city they choose, go to whatever college they choose, and have any job they choose. 

 
So you are expecting a 23 year old to uproot their life and move across the country just to have a comfortable life? Doesn't seem especially reasonable to me.

The Denver area isn't much better than Maryland. I have a co-worker that just bought a house for $295k. The house is something like 800 sf upstairs and an 800 sf partially finished basement. Early 1950s build across the street from a handful of concrete plants in the worst school district in the metro area. Those are the only type of homes available for that kind of money anywhere near Denver. I think the average home price is approaching 500k.

The difference between Denver and the coasts is salaries are closer to the mid-west. The median salary to median home price isn't SF/NYC bad, but it's still unreasonable.
A 23 year old has most likely already uprooted their life by going to college.  Are all these students we're talking about going to the local college?  Most likely they are in another state or at least hours away from home.  Sometimes you need to go where the jobs are.  Over half of my graduating class from high school have jobs in different cities.  Few of us are still in our same home town.  Isn't that the age that most people move on to bigger and better things?

My brother moved to Texas from Iowa right out of college because they offered him a job right away.  Texas was in dire need of good teachers and Iowa was pumping them out year after year.  He thought he would try it out for a couple years to see if it would work and now he's been there for 17 years.

 
So you are expecting a 23 year old to uproot their life and move across the country just to have a comfortable life? Doesn't seem especially reasonable to me.
I moved from CT to GA at 22 for this reason. The difference in available jobs and cost of living was as insane then as it is now, like 2 different countries. It's easily the smartest thing I've ever done.

 
I moved from CT to GA at 22 for this reason. The difference in available jobs and cost of living was as insane then as it is now, like 2 different countries. It's easily the smartest thing I've ever done.
Exactly.  People do it all the time and have been doing it for a very long time.  It's the reason the US became what it did.  More opportunities than other countries.  It's part of the American Dream.

 
A 23 year old has most likely already uprooted their life by going to college.  Are all these students we're talking about going to the local college?  Most likely they are in another state or at least hours away from home.  Sometimes you need to go where the jobs are.  Over half of my graduating class from high school have jobs in different cities.  Few of us are still in our same home town.  Isn't that the age that most people move on to bigger and better things?

My brother moved to Texas from Iowa right out of college because they offered him a job right away.  Texas was in dire need of good teachers and Iowa was pumping them out year after year.  He thought he would try it out for a couple years to see if it would work and now he's been there for 17 years.
You and many others are advocating that kids should be going to cheaper schools. The cheaper schools are almost certainly going to be in-state. Unless they are in a state like Texas, that probably means a school within a couple hours of home. According to this article, most kids go to school within 100 miles from home. Only 11 percent go more than 500 miles away. 

There is a big difference between some people chasing bigger things far away and expecting that of a large portion of college graduates. 

 
You and many others are advocating that kids should be going to cheaper schools. The cheaper schools are almost certainly going to be in-state. Unless they are in a state like Texas, that probably means a school within a couple hours of home. According to this article, most kids go to school within 100 miles from home. Only 11 percent go more than 500 miles away. 

There is a big difference between some people chasing bigger things far away and expecting that of a large portion of college graduates. 
The point is that it's all there for them.  They just have to do it.  It's all up to them.  They are not victims.

 
Exactly.  People do it all the time and have been doing it for a very long time.  It's the reason the US became what it did.  More opportunities than other countries.  It's part of the American Dream.
My parents still live in CT in one of the most expensive counties in the US. Just knowing what they pay in property taxes alone makes me weep. I have no idea how they afford new cars & vacations. My mom is a wizard with budgeting, but still.

 
My parents still live in CT in one of the most expensive counties in the US. Just knowing what they pay in property taxes alone makes me weep. I have no idea how they afford new cars & vacations. My mom is a wizard with budgeting, but still.
I'm assuming they have good paying jobs as well.  Budgeting is key though.

 
Hawkeye21 said:
Are these national averages?  I sometimes think that people out of college expect to have a high paying job and great house right away.  It takes a while.

Where are these people living where a starter home is $300,000?  How big of a house is considered a starter house?  I imagine there are cheaper homes available in other neighborhoods.


proteus126 said:
Wait a minute - are we talking "average" here?  Average Millenials don't pay $100,000 / year for college.  That is just nuts unless you come from money.  The average In-State tuition was around $10k (http://static.bangordailynews.com/wp-content/uploads/2015/11/cp-2015-f08.png) just a few years ago.  That chart is labeled "tuition and fees" but I'm not sure that is correct - seems too low.

The average Millennial couple wanting to have kids would reasonably have paid $60k each to get a decent degree in 4 years.  $120k total for the couple.  Assuming they at least had summer jobs and some help from the parents, their loan nut would be somewhere under 6 figures.  Making any of the available choices to keep costs down will further reduce the loan burden:  One or both lives at home during college, jobs during the school year, choosing the lowest-priced school consistent with education goals, etc.  There are grants and scholarships as well, but I'm not interested in digging too deep for the sake of what is supposed to be a simple example.  Let's just say our young couple graduates with a total of $60k in school loan debt.

As a couple they would be grossing $60k initially, but should be at $75k (inflation adjusted) in five years, $90k in ten, etc, assuming one of them doesn't (a) lose their job (bad) or (b) get promoted to an elevated pay track (good).  They should be able to pay that loan down in a timely manner assuming some basic employment stability.

A starter home shouldn't be over $200k in most parts of the country, and in fact could be significantly less.  That is untrue in the DC suburbs, but the average starting salary there is more than $30k mind you.  For the $200k mortgage figure $900 a month in P&I and $300 a month in T&I on a $200k mortgage at 3.75%.  $1200/mo or $15k annualy.  Biggest hurdle there is scraping together some kind of down payment, but requirements for first-time buyers are not too severe.  Or rent - more or less the same outflow.  They can afford both the house and paying off their loans if they practice sound budgeting.  And I stress, we are not talking about NYC living - that isn't average.  Young couple who try to make it there with big debt and lousy media-related starting salaries are nuts, and I suspect are the ones most often writing up these kinds of "poor me" complaints.

Are we talking about two 23 year olds in love that absolutely must have both a house and a baby right off the bat?  Yeah, that might be darn tough.  Nobody is asking the Millennials to have a kid that soon.  Might want to wait a few years to get settled regarding employment and housing.  Based on my fading memory, 25 years ago people did the same thing with regards to waiting to have kids until the late 20's typically.  Even back then, when starting out a couple could realistically do only two out of the three choices of buying a house, paying off loans, and having a kid.  A few years later, all three were possible.  It is never easy to do all three in your 20's but is doable.  Good idea to first learn how to live as an earning adult, gaining success at tier 2 achievements of meeting debts and owning property, before trying to get into the top tier of responsibility and cost of having a kid.

You can derail the above by saying degrees take more than 4 years (they don't have to), houses cost way more (they don't have to), working during school is impossible (it isn't), living some/all of the college years at home is unthinkable (your call, your nickel).  Maybe it is easier to fire off a pouting tweet and cherish the "special" nature of your particular victimhood than to just grind it out.
The tweet was a bit of a joke (based in reality). The numbers aren't necesarily totally accurate but the ideas there are. 

 
Thunderlips said:
I'm no real fan of millenials.....but it is pretty funny seeing all of the "born on third base" Gen Xers and earlier poo-pooing these kids coming into the workforce. 
I  wish I was just 5 or 10 years older. I would have had it made in my job. I would be on the top of the pay scale and locked into nearly 100k a year for the rest of my life. Instead, I came into the teaching profession just before the recession and I will be lucky to ever see 70k. I am on year 11 and still haven't broken 50k. Now part of that is my choice. I could have switched schools (but I would lose seniority and run the risk of being laid off). Also, I like where I work, am very well respected and love the clientele. My wife makes a lot of money so it's not an issue for me, but there is absolutely a big generational divide here. The Boomer and Gen Xers are at the top of the pay scale making nearly 100k. The Millenial teachers are frozen near the bottom making 30-40k. 

 
Yes. It is far more reasonable than making it so every millenial gets to work in whatever city they choose, go to whatever college they choose, and have any job they choose. 
I wasn't advocating for some kid getting a liberal arts degree from NYU and living in Manhattan. I've been specifically discussing Denver/Colorado, which happens to be one of the hottest job markets in the US. If I was graduating high school in 2018 rather than 2004, I don't see a reasonable way to get the same degree I got (Civil Engineering) from a moderately priced school (Colorado State) without financial help from my parents and still manage to live any semblance of what would have been expected by any Baby Boomer/Gen X graduate.

Tuition/Fees/Books/Rent/Food would run well over $25k a year. A part time job might cover a third of that. An Engineering student doesn't have the time to get a 20 hour a week job like other majors, and the course load (128 credits rather than 120) often forces kids to graduate in 4.5 semesters even if they stay on track. Once graduating somebody would be saddled with $80k in debt. My industry (transportation/roads) typically hires new grads for between $52k-$55k (which is about the same as it was in the mid-2000s). The Denver metro area (which has probably 80-90% of the jobs in my industry) has apartment rentals for probably an average of $1500, with the average home approaching $500k (median closer to $400k). Good luck to that smart kid who made all the right choices in going to a cheap state school, picking a well paying major, all while working through school. 

 
The point is that it's all there for them.  They just have to do it.  It's all up to them.  They are not victims.
That's easy for you to say as you still live in your home town. Moving a plane flight away from your entire support structure isn't something everybody can do. At some point happiness has to weigh into life choices. The expectation shouldn't be that everybody gets to live where they want with the perfect career. But it shouldn't be to move half way across the county to chase the same opportunities the previous generations had at home.

Beyond that ridiculous expectation, where are these career hotbeds that have reasonable living expenses for a young twenty-something? Most of the hot job markets that I'm aware of are in places with quickly increasing living costs. 

 
GROOT said:
Yeah but they must have the latest I Phone, doesn't matter the cost...
The average salary for a person with a 4 year degree in engineering, mathematics, humanities and business from 1985 to 2015 has decreased about $2k.  The average annual tuition has increased by $6k a year. Average cost of new a home from 88 to 2015 is up $60k. Median rent has gone up about $300 a month. But yeah, it's definitely the new iPhone that is causing the finanical troubles for millenials. 

 
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The college costs are being referred to are for their future children.

The only way to $1200 on a 200k house is to put 20% down.
Ah - my bad on the college cost.  Makes sense.

Regarding the 200k house, I simply ran the normal BankRate.com calculation on a $200k 30-year mortgage at 3.75% and got a P&I of around $925.  Assume annual property tax at 1% of home value of $2000 (~ $200/mo) and home insurance of $100/mo and you are just over $1200.  I may be off on the insurance monthly, but it will be a small difference.  That's your monthly cost without PMI, which you'd be wise to avoid by paying 20% down of course.

 
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That's easy for you to say as you still live in your home town. Moving a plane flight away from your entire support structure isn't something everybody can do. At some point happiness has to weigh into life choices. The expectation shouldn't be that everybody gets to live where they want with the perfect career. But it shouldn't be to move half way across the county to chase the same opportunities the previous generations had at home.

Beyond that ridiculous expectation, where are these career hotbeds that have reasonable living expenses for a young twenty-something? Most of the hot job markets that I'm aware of are in places with quickly increasing living costs. 
You're right.  I chose to stay here because I didn't want to start new somewhere else.  I wasn't comfortable doing it.  I didn't have to though as I had options for jobs here.  I worked different jobs until I figured out what I was happy doing.  I could probably move somewhere else and make more money but I probably wouldn't be happy.  I'd rather make less doing something I enjoy and being somewhere I like.  Some people would rather be unhappy but make a lot of money early then try to retire early.

Like I said before, the options are all there.  I didn't say it would be easy for everyone.  Life is tough but it's not impossible.  I get tired of hearing there aren't jobs or that they're screwed before they even start.  You're not.  In fact, you have far more advantages than many people in the world.  Keep things in perspective.

 
Beyond that ridiculous expectation, where are these career hotbeds that have reasonable living expenses for a young twenty-something? Most of the hot job markets that I'm aware of are in places with quickly increasing living costs. 
Detroit? Although the cost of housing is already starting to take off as gentrification kicks into full gear. 

 
That's easy for you to say as you still live in your home town. Moving a plane flight away from your entire support structure isn't something everybody can do. At some point happiness has to weigh into life choices. The expectation shouldn't be that everybody gets to live where they want with the perfect career. But it shouldn't be to move half way across the county to chase the same opportunities the previous generations had at home.

Beyond that ridiculous expectation, where are these career hotbeds that have reasonable living expenses for a young twenty-something? Most of the hot job markets that I'm aware of are in places with quickly increasing living costs. 
The previous generations didnt consider moving out on their own and eating ramen noodles for a while as a backward step.

 
That's easy for you to say as you still live in your home town. Moving a plane flight away from your entire support structure isn't something everybody can do. At some point happiness has to weigh into life choices. The expectation shouldn't be that everybody gets to live where they want with the perfect career. But it shouldn't be to move half way across the county to chase the same opportunities the previous generations had at home.

Beyond that ridiculous expectation, where are these career hotbeds that have reasonable living expenses for a young twenty-something? Most of the hot job markets that I'm aware of are in places with quickly increasing living costs. 
Charlotte and Raleigh/Durham.  Hear good things about Atlanta, Austin, and Nashville too.

 
That's easy for you to say as you still live in your home town. Moving a plane flight away from your entire support structure isn't something everybody can do. At some point happiness has to weigh into life choices. The expectation shouldn't be that everybody gets to live where they want with the perfect career. But it shouldn't be to move half way across the county to chase the same opportunities the previous generations had at home.

Beyond that ridiculous expectation, where are these career hotbeds that have reasonable living expenses for a young twenty-something? Most of the hot job markets that I'm aware of are in places with quickly increasing living costs. 
Hasn't that (aside from the plane flight aspect of it), more or less, been an intregal part of this country?  The idea that the established didn't provide enough opportunity for youth (or the disenfranchised)......so those  people moved West?

ETA: I get what you're saying......but aside from the Post War boom (something that will probably be a unique situation in the growth of this country).....it seems that a decent part of success in this country came from people moving to where opportunity was .  

 
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One nice advantage my generation (X) had was a prolonged spell of seemingly stagnant home prices in the '90s.  Many of us bought our first home before prices began to rise circa 1998.  I bought my first house in 1998.  Lucky.  Of course, many later Gen Xers first bought during the mid 2000's and were hurt by that.

Interesting chart available at this link.  After the mid-2000s housing bubble, home prices have returned to more normal levels relative to household income.  Maybe the Millennials' problem isn't home prices, but rather household formation?

 
One nice advantage my generation (X) had was a prolonged spell of seemingly stagnant home prices in the '90s.  Many of us bought our first home before prices began to rise circa 1998.  I bought my first house in 1998.  Lucky.  Of course, many later Gen Xers first bought during the mid 2000's and were hurt by that.

Interesting chart available at this link.  After the mid-2000s housing bubble, home prices have returned to more normal levels relative to household income.  Maybe the Millennials' problem isn't home prices, but rather household formation?
The graph is 6 years old. Housing costs are back up. Avergae existing single family home is up to $279,000. So, there was a really nice time to buy during the recession but that time has passed. 

 
The graph is 6 years old. Housing costs are back up. Avergae existing single family home is up to $279,000. So, there was a really nice time to buy during the recession but that time has passed. 
Do you have a more modern graph?  I was aware that the one I found was beginning to age, and would like to see something more current.  Thanks.

 
One nice advantage my generation (X) had was a prolonged spell of seemingly stagnant home prices in the '90s.  Many of us bought our first home before prices began to rise circa 1998.  I bought my first house in 1998.  Lucky.  Of course, many later Gen Xers first bought during the mid 2000's and were hurt by that.

Interesting chart available at this link.  After the mid-2000s housing bubble, home prices have returned to more normal levels relative to household income.  Maybe the Millennials' problem isn't home prices, but rather household formation?
I know millenials hate this stereotype, but I think they have a lot of fear of giving anything up.

 
The graph is 6 years old. Housing costs are back up. Avergae existing single family home is up to $279,000. So, there was a really nice time to buy during the recession but that time has passed. 
Average price must include all homes since there is a huge discrepancy between median and mean home price in america. 

 
Not quite like yours. This shows it is actually $290k right now  I can't quickly find the mean household income, but median is $59,000.   It seems out of whack with the info you presented in the graph though, so I am not sure how it was all compiled. 
Mine was titled "existing homes" so that may account for much of the difference.

The "norm" looked like a ratio of just over 3 for price/income, and the orange ratio line had gone below that norm circa 2012.  I'm sure it is over again, but probably not dramatically.  Home price growth since 2012 has outpaced household income certainly, but I'm unsure by how much.

 
Mine was titled "existing homes" so that may account for much of the difference.

The "norm" looked like a ratio of just over 3 for price/income, and the orange ratio line had gone below that norm circa 2012.  I'm sure it is over again, but probably not dramatically.  Home price growth since 2012 has outpaced household income certainly, but I'm unsure by how much.
Doesn't my link say "existing homes" as well? 

 
In my county (Maryland suburbs of DC), which is admittedly one of the priciest counties in the country, I'm not sure whether there is such thing as a $300K single family home. I just did a search on google and it all seems like either apartments or empty lots for that price.

ETA:  Wait!  I lied there are a few of them.

https://www.zillow.com/homes/for_sale/Montgomery-County-MD/house_type/37102093_zpid/2975_rid/0-300000_price/0-1120_mp/zesta_sort/39.280104,-76.896401,38.857354,-77.335854_rect/10_zm/2_p/0_mmm/?

https://www.zillow.com/homes/for_sale/Montgomery-County-MD/house_type/37073725_zpid/2975_rid/0-300000_price/0-1120_mp/zesta_sort/39.280104,-76.896401,38.857354,-77.335854_rect/10_zm/2_p/0_mmm/?


I can't imagine that's the average across the US though.  Those seem like very extreme cases.  Not every kids out of college needs to live in the most expensive cities in the US.  There are jobs everywhere.
Yep.

These are probably closer to a $300k home in a great neighborhood with very good schools for the rest of the US.

https://www.zillow.com/homedetails/2224-Burnside-Dr-Murfreesboro-TN-37128/123114335_zpid/

https://www.zillow.com/homedetails/1232-Stone-Creek-Dr-Lawrence-KS-66049/74581677_zpid/

 
Good luck to that smart kid who made all the right choices in going to a cheap state school, picking a well paying major, all while working through school.
That's not really true though if the wage growth isn't very good over the last 2 decades... Civil and Mechanical engineering starting salaries have less purchasing power than they used to.  Computer science on the other hand has probably kept pace.

But you're right, the starting salaries in ME (my field) aren't that much higher now than when I got a bsme in 2002.

 

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