US economy thread (2 Viewers)

[-OZ-]

People are certainly still buying. I don't know how people are affording them though? Wages certainly can't be keeping up. Everyone cashing in BTC?

It is crazy

if I sold I couldn't afford to buy anywhere near the house I live in now.

A few of us were just talking about this. While I wouldn’t say we “couldn’t” buy our house today with the price and rates, doing so would severely cut investing or having money left to do much of anything else.

Home prices have increased 1,608% since 1970, while inflation has increased 644%.

Is that on average or for an identical house? Median home sizes have grown by 150% since 1980. In 1980, the median size of a new home in the U.S. was 1,595 square feet. Nearly 40 years later, the median size of newly constructed homes was 2,386 square feet (2018)

FWIW, 22% of 18-34 year old men live at home now as opposed to just 10.9% in 1960. We won’t kick our kids out for a long time but that’s a sobering stat.

 

[Ilov80s]

Kind of funny this thread has been around for a year where the economy has been objectively quite strong. Inflation has stabilized from 2022. Unemployment has stayed sub 4%. NASDAQ is up.

 

[Grahamburn]

Kind of funny this thread has been around for a year where the economy has been objectively quite strong. Inflation has stabilized from 2022. Unemployment has stayed sub 4%. NASDAQ is up.

Corporations are making massive profits due to the prices they’re charging. Stocks are up. That’s great if you can afford to own stocks.

40+ year old FBGs that already own homes and stocks are probably fine.

What about our kids though? A lot of them are struggling.

I had two requests this week to pause 401k contributions for mid-20s female staff members.

The increases in index funds won’t help much if they have to sacrifice their futures to afford their present.

 

[Grahamburn]

A very interesting real estate thread

Looking at the twitter thread, that guys been predicting a crash since at least 2020. I’m sure he’ll be right eventually

One of those dudes who has predicted 14 of the last 3 recessions?

People are getting into outrageously high interest mortgages on outrageously high priced homes. What could go wrong?

not outrageous interest rates, take a look at history

Mortgage Rate History: 1970s To 2025 | Bankrate

Today’s mortgage rates aren’t all that different from the rates of years past. Here’s how they compare.

www.bankrate.com

I could also buy a mansion for $100k in 1970.

100K in 1970 is worth $809,456 today.

ETA: housing prices have increased more than inflation. Good if you've owned real estate, not so good if don't.

Increases in average home prices have far exceeded the rate of inflation. Home prices have increased 1,608% since 1970, while inflation has increased 644%.

I like the edit. Thank you. The mortgage, banking, and real estate industry want you to believe it’s not so bad because “history.”

In 1980 even at a crazy interest rate of like 16% (My Dad told me this was his first rate and home was $60k) is a payment of like $800 a month. That’s very affordable considering standard and cost of living in that time.

It isn’t affordable now for most folks.

 

[Mitchie]

People are certainly still buying. I don't know how people are affording them though? Wages certainly can't be keeping up. Everyone cashing in BTC?

It is crazy

if I sold I couldn't afford to buy anywhere near the house I live in now.

A few of us were just talking about this. While I wouldn’t say we “couldn’t” buy our house today with the price and rates, doing so would severely cut investing or having money left to do much of anything else.

Home prices have increased 1,608% since 1970, while inflation has increased 644%.

Is that on average or for an identical house? Median home sizes have grown by 150% since 1980. In 1980, the median size of a new home in the U.S. was 1,595 square feet. Nearly 40 years later, the median size of newly constructed homes was 2,386 square feet (2018)

FWIW, 22% of 18-34 year old men live at home now as opposed to just 10.9% in 1960. We won’t kick our kids out for a long time but that’s a sobering stat.

Good point hadn't thought of that, looks like it isn't adjusted for size, or additional amenities, found this

In 2023 the price per square foot of a new home was 20% more than in 1978 when you adjust for inflation. That is a significant increase but it doesn’t sound quite as alarming as when you only look house prices without taking into consideration inflation and the size of new homes. Particularly when you think about the amenities that are now standard for new homes.

 

[Ilov80s]

Kind of funny this thread has been around for a year where the economy has been objectively quite strong. Inflation has stabilized from 2022. Unemployment has stayed sub 4%. NASDAQ is up.

Corporations are making massive profits due to the prices they’re charging. Stocks are up. That’s great if you can afford to own stocks.

40+ year old FBGs that already own homes and stocks are probably fine.

What about our kids though? A lot of them are struggling.

I had two requests this week to pause 401k contributions for mid-20s female staff members.

The increases in index funds won’t help much if they have to sacrifice their futures to afford their present.

Definitely not a perfect economy. Is there such a thing? If it was reversed, older people would be complaining about their investments savings struggling and not being able to retire.

Wage growth has outpaced inflation this last year at least. I do believe we need a better balance between corporate profit and wages though. However, I remember 2008 in Michigan. This isn’t a bad economy. Not by a long shot.

 

[culdeus]

Kind of funny this thread has been around for a year where the economy has been objectively quite strong. Inflation has stabilized from 2022. Unemployment has stayed sub 4%. NASDAQ is up.

Every year I work I get two closer to just staying home. Stonks are just insane.

 

[BlackCrowes]

Kind of funny this thread has been around for a year where the economy has been objectively quite strong. Inflation has stabilized from 2022. Unemployment has stayed sub 4%. NASDAQ is up.

Bound to be right sooner or later

 

[The Z Machine]

I expect the real estate bubble will burst sooner than later. A ranch house in my area bought for $140k in 2000, is now sold for $550 with no improvements. It's actually pretty run down. It's one example, but common up here in the north east. I could give twenty similar examples fwiw.

I just looked at estimates for my zip code. 20% appreciation over 10 years. That's less than inflation and less than wage growth.

Come to Baltimore! Getting more affordable by the day!

 

[Ilov80s]

Kind of funny this thread has been around for a year where the economy has been objectively quite strong. Inflation has stabilized from 2022. Unemployment has stayed sub 4%. NASDAQ is up.

Bound to be right sooner or later

Sure lol maybe I will be a doctor and every time a patient comes in I’ll just tell them they are dying. Eventually I will be right.

 

[-OZ-]

Come to Baltimore! Getting more affordable by the day!

But then we’d have to live in Baltimore.


(As I write from Alabama where our house has almost doubled in value since we bought in 2016)

 

[-OZ-]

every time a patient comes in I’ll just tell them they are dying. Eventually I will be right.

Technically, We’re all dying.

 

[BassNBrew]

People are certainly still buying. I don't know how people are affording them though? Wages certainly can't be keeping up. Everyone cashing in BTC?

It is crazy

if I sold I couldn't afford to buy anywhere near the house I live in now.

A few of us were just talking about this. While I wouldn’t say we “couldn’t” buy our house today with the price and rates, doing so would severely cut investing or having money left to do much of anything else.

Home prices have increased 1,608% since 1970, while inflation has increased 644%.

Is that on average or for an identical house? Median home sizes have grown by 150% since 1980. In 1980, the median size of a new home in the U.S. was 1,595 square feet. Nearly 40 years later, the median size of newly constructed homes was 2,386 square feet (2018)

FWIW, 22% of 18-34 year old men live at home now as opposed to just 10.9% in 1960. We won’t kick our kids out for a long time but that’s a sobering stat.

Good point hadn't thought of that, looks like it isn't adjusted for size, or additional amenities, found this

In 2023 the price per square foot of a new home was 20% more than in 1978 when you adjust for inflation. That is a significant increase but it doesn’t sound quite as alarming as when you only look house prices without taking into consideration inflation and the size of new homes. Particularly when you think about the amenities that are now standard for new homes.

LVP costs about 2x carpet. Granite costs about 7x laminate counters. Those are now pretty much standard as everyone considers them must haves as they are in every mid-level and up apartment. No body wants to downgrade when buying a home.

 

[Ilov80s]

every time a patient comes in I’ll just tell them they are dying. Eventually I will be right.

Technically, We’re all dying.

He not busy being born is busy dying.

 

[Andy Dufresne]

On a long enough timeline, the survival rate for everyone drops to zero.

 

[fruity pebbles]

Kind of funny this thread has been around for a year where the economy has been objectively quite strong. Inflation has stabilized from 2022. Unemployment has stayed sub 4%. NASDAQ is up.

Corporations are making massive profits due to the prices they’re charging. Stocks are up. That’s great if you can afford to own stocks.

40+ year old FBGs that already own homes and stocks are probably fine.

What about our kids though? A lot of them are struggling.

I had two requests this week to pause 401k contributions for mid-20s female staff members.

The increases in index funds won’t help much if they have to sacrifice their futures to afford their present.

It really is an economy of the haves and have nots largely separated by age. We are an older group and most of us are doing just fine. Economy is good. I work with largely a younger group. It’s not good for them. Until recently, new nurses were able to afford to live. Many now have an additional part time job. That was never a thing and these are kids making well above average for their age. They laugh when the topic of buying a house comes up. We are spending future dollars today which have largely propped up asset prices. The under 35s have not benefitted from that, yet they will be the ones footing the bill. I don’t want to get too far into it because it will end up being a boomer discussion about how hard we worked, they need to sacrifice, stop buying Starbucks etc. Objectively looking at it though, starting out has never been less affordable.

 

[IvanKaramazov]

Kind of funny this thread has been around for a year where the economy has been objectively quite strong. Inflation has stabilized from 2022. Unemployment has stayed sub 4%. NASDAQ is up.

Corporations are making massive profits due to the prices they’re charging. Stocks are up. That’s great if you can afford to own stocks.

40+ year old FBGs that already own homes and stocks are probably fine.

What about our kids though? A lot of them are struggling.

I had two requests this week to pause 401k contributions for mid-20s female staff members.

The increases in index funds won’t help much if they have to sacrifice their futures to afford their present.

It really is an economy of the haves and have nots largely separated by age. We are an older group and most of us are doing just fine. Economy is good. I work with largely a younger group. It’s not good for them. Until recently, new nurses were able to afford to live. Many now have an additional part time job. That was never a thing and these are kids making well above average for their age. They laugh when the topic of buying a house comes up. We are spending future dollars today which have largely propped up asset prices. The under 35s have not benefitted from that, yet they will be the ones footing the bill. I don’t want to get too far into it because it will end up being a boomer discussion about how hard we worked, they need to sacrifice, stop buying Starbucks etc. Objectively looking at it though, starting out has never been less affordable.

This is basically my read of the situation as well. Those of us with time in the market are doing great. It does seem like 20/30-somethings have it tougher than I did at that age.

 

[beer 30]

It really is an economy of the haves and have nots largely separated by age. We are an older group and most of us are doing just fine. Economy is good. I work with largely a younger group. It’s not good for them. Until recently, new nurses were able to afford to live. Many now have an additional part time job. That was never a thing and these are kids making well above average for their age. They laugh when the topic of buying a house comes up. We are spending future dollars today which have largely propped up asset prices. The under 35s have not benefitted from that, yet they will be the ones footing the bill. I don’t want to get too far into it because it will end up being a boomer discussion about how hard we worked, they need to sacrifice, stop buying Starbucks etc. Objectively looking at it though, starting out has never been less affordable.

As a boomer with a one daughter that is 28 and one that is turning 23 this week, this is pretty much exactly the situation. The 28 year old is a teacher in SC, she barely makes a livable wage accordingly. If she lived on her own, she would require a roommate to afford anything in the area. She has areas she could cut spending (her dog being the most expensive part of her life) but she doesn't live an extravagant lifestyle, she simply doesn't get paid ****.

The 23 year old graduated from college a year ago and has been waiting on her boyfriend to graduate before making a job decision. It's muddled up but she is interviewing for a recruiter job in Atlanta that starts at $40k a year. Those of you that live in the ATL can speak to whether you can live on that there or not. I know in Charlotte, NC it would require a roommate or possible two. She told us a year ago she would never be able to afford a house and I laughed at her. Now I'm not so sure she wasn't right.

 

[fruity pebbles]

It really is an economy of the haves and have nots largely separated by age. We are an older group and most of us are doing just fine. Economy is good. I work with largely a younger group. It’s not good for them. Until recently, new nurses were able to afford to live. Many now have an additional part time job. That was never a thing and these are kids making well above average for their age. They laugh when the topic of buying a house comes up. We are spending future dollars today which have largely propped up asset prices. The under 35s have not benefitted from that, yet they will be the ones footing the bill. I don’t want to get too far into it because it will end up being a boomer discussion about how hard we worked, they need to sacrifice, stop buying Starbucks etc. Objectively looking at it though, starting out has never been less affordable.

As a boomer with a one daughter that is 28 and one that is turning 23 this week, this is pretty much exactly the situation. The 28 year old is a teacher in SC, she barely makes a livable wage accordingly. If she lived on her own, she would require a roommate to afford anything in the area. She has areas she could cut spending (her dog being the most expensive part of her life) but she doesn't live an extravagant lifestyle, she simply doesn't get paid ****.

The 23 year old graduated from college a year ago and has been waiting on her boyfriend to graduate before making a job decision. It's muddled up but she is interviewing for a recruiter job in Atlanta that starts at $40k a year. Those of you that live in the ATL can speak to whether you can live on that there or not. I know in Charlotte, NC it would require a roommate or possible two. She told us a year ago she would never be able to afford a house and I laughed at her. Now I'm not so sure she wasn't right.

My 8 year old (yes I’m old and have young kids lol) said to me the other day…….dad, I’m going to live with you forever. He meant it as, he loves me and he never wants to leave but I’m looking at him like…..yup, you might be right lol.

 

[NutterButter]

I tried to explain to my daughter she can either go to an expensive private college or go to a still pretty good state school and save a bunch of money. That money saved could then be used for a nice down payment setting her up very nicely. She chose the private school. I wish her the best. Maybe she gets a great job and it all works out but a lot of times you need to learn these lessons the hard way.

 

[Jobber]

This may not be the right place for this, but I’ll ask anyway. If my kid wants to buy a house for $400k, can I gift him $100k for a down payment without either of us getting killed by the IRS?

 

[fruity pebbles]

It really is an economy of the haves and have nots largely separated by age. We are an older group and most of us are doing just fine. Economy is good. I work with largely a younger group. It’s not good for them. Until recently, new nurses were able to afford to live. Many now have an additional part time job. That was never a thing and these are kids making well above average for their age. They laugh when the topic of buying a house comes up. We are spending future dollars today which have largely propped up asset prices. The under 35s have not benefitted from that, yet they will be the ones footing the bill. I don’t want to get too far into it because it will end up being a boomer discussion about how hard we worked, they need to sacrifice, stop buying Starbucks etc. Objectively looking at it though, starting out has never been less affordable.

As a boomer with a one daughter that is 28 and one that is turning 23 this week, this is pretty much exactly the situation. The 28 year old is a teacher in SC, she barely makes a livable wage accordingly. If she lived on her own, she would require a roommate to afford anything in the area. She has areas she could cut spending (her dog being the most expensive part of her life) but she doesn't live an extravagant lifestyle, she simply doesn't get paid ****.

The 23 year old graduated from college a year ago and has been waiting on her boyfriend to graduate before making a job decision. It's muddled up but she is interviewing for a recruiter job in Atlanta that starts at $40k a year. Those of you that live in the ATL can speak to whether you can live on that there or not. I know in Charlotte, NC it would require a roommate or possible two. She told us a year ago she would never be able to afford a house and I laughed at her. Now I'm not so sure she wasn't right.

Yeah, 40k a year is $20 an hour. The McDonalds up the street from me is hiring at $19. There are jobs out there but finding one making more than $25 an hour is getting very difficult unless you’re in a specialty field.

 

[Andy Dufresne]

This may not be the right place for this, but I’ll ask anyway. If my kid wants to buy a house for $400k, can I gift him $100k for a down payment without either of us getting killed by the IRS?

Do you trust your wife?

 

[NutterButter]

This may not be the right place for this, but I’ll ask anyway. If my kid wants to buy a house for $400k, can I gift him $100k for a down payment without either of us getting killed by the IRS?

You can gift them way more than that. You just need to fill out a form letting the irs know since its above like $18k in the year. As long as you don't exceed like $13M, you're good.

 

[Jobber]

This may not be the right place for this, but I’ll ask anyway. If my kid wants to buy a house for $400k, can I gift him $100k for a down payment without either of us getting killed by the IRS?

Do you trust your wife?

LOL how long have you been waiting to use that one Mr. Dufresne?

 

[NutterButter]

This may not be the right place for this, but I’ll ask anyway. If my kid wants to buy a house for $400k, can I gift him $100k for a down payment without either of us getting killed by the IRS?

Do you trust your wife?

That one was set up nicely for you

 

[SFBayDuck]

As a boomer with a one daughter that is 28 and one that is turning 23 this week, this is pretty much exactly the situation. The 28 year old is a teacher in SC, she barely makes a livable wage accordingly. If she lived on her own, she would require a roommate to afford anything in the area. She has areas she could cut spending (her dog being the most expensive part of her life) but she doesn't live an extravagant lifestyle, she simply doesn't get paid ****.

The 23 year old graduated from college a year ago and has been waiting on her boyfriend to graduate before making a job decision. It's muddled up but she is interviewing for a recruiter job in Atlanta that starts at $40k a year. Those of you that live in the ATL can speak to whether you can live on that there or not. I know in Charlotte, NC it would require a roommate or possible two. She told us a year ago she would never be able to afford a house and I laughed at her. Now I'm not so sure she wasn't right.

But isn't that normal? I lived with roomates....basically forever! Through college, after college through my 20s (lived with 3 other people in two different places from like 23-29), and then moved in with my then future (and now ex) wife. Through all of those years I couldn't afford a place, even a rental, on my own. Maybe that's just the way it's always been out here on the coast, but I don't know too many people that lived on their own in their 20s. I expect my daughter when she graduates next year will continue to live with roommates for several years, just like she has through college.

The one friend I had who was able to buy a house by about 25 years old "house hacked" it - he had three buddies move in and pay rent, essentially covering his mortgage. And he bought a fixer-upper and gradually improved it over several years.

 

[the moops]

The 23 year old graduated from college a year ago and has been waiting on her boyfriend to graduate before making a job decision. It's muddled up but she is interviewing for a recruiter job in Atlanta that starts at $40k a year. Those of you that live in the ATL can speak to whether you can live on that there or not. I know in Charlotte, NC it would require a roommate or possible two.

A 23 year old should have a roommate or two. I'm skeptical that any young 20 year old is any worse off than we were in the mid 90's.

 

[NutterButter]

As a boomer with a one daughter that is 28 and one that is turning 23 this week, this is pretty much exactly the situation. The 28 year old is a teacher in SC, she barely makes a livable wage accordingly. If she lived on her own, she would require a roommate to afford anything in the area. She has areas she could cut spending (her dog being the most expensive part of her life) but she doesn't live an extravagant lifestyle, she simply doesn't get paid ****.

The 23 year old graduated from college a year ago and has been waiting on her boyfriend to graduate before making a job decision. It's muddled up but she is interviewing for a recruiter job in Atlanta that starts at $40k a year. Those of you that live in the ATL can speak to whether you can live on that there or not. I know in Charlotte, NC it would require a roommate or possible two. She told us a year ago she would never be able to afford a house and I laughed at her. Now I'm not so sure she wasn't right.

But isn't that normal? I lived with roomates....basically forever! Through college, after college through my 20s (lived with 3 other people in two different places from like 23-29), and then moved in with my then future (and now ex) wife. Through all of those years I couldn't afford a place, even a rental, on my own. Maybe that's just the way it's always been out here on the coast, but I don't know too many people that lived on their own in their 20s. I expect my daughter when she graduates next year will continue to live with roommates for several years, just like she has through college.

The one friend I had who was able to buy a house by about 25 years old "house hacked" it - he had three buddies move in and pay rent, essentially covering his mortgage. And he bought a fixer-upper and gradually improved it over several years.

Should be normal. Even more so now that things have certainly gotten harder. Lots of pathways still to have a good life, but you've got to make good choices that a lot of times are hard and require some sacrifice.

 

[massraider]

Should be normal. Even more so now that things have certainly gotten harder. Lots of pathways still to have a good life, but you've got to make good choices that a lot of times are hard and require some sacrifice.

What choices need to be made for someone making less than $75,000 a year to buy a home?

Asking for half of all Americans.

 

[The General]

This may not be the right place for this, but I’ll ask anyway. If my kid wants to buy a house for $400k, can I gift him $100k for a down payment without either of us getting killed by the IRS?

Do you trust your wife?

Bravo

 

[NutterButter]

Should be normal. Even more so now that things have certainly gotten harder. Lots of pathways still to have a good life, but you've got to make good choices that a lot of times are hard and require some sacrifice.

What choices need to be made for someone making less than $75,000 a year to buy a home?

Asking for half of all Americans.

I'd say some of your options are 1) live at home, 2) have roommates, 3) choose a rental that's older and doesn't have all the amenities, 4) choose a rental that has a further commute. Do a combination of those for say 8 years after graduating and that will help. At least that's what I did. Now that 3 hour round trip commute into the city was pretty terrible, but it gave me the ability to buy a house during another super inflated period in 2006.

 

[fruity pebbles]

The 23 year old graduated from college a year ago and has been waiting on her boyfriend to graduate before making a job decision. It's muddled up but she is interviewing for a recruiter job in Atlanta that starts at $40k a year. Those of you that live in the ATL can speak to whether you can live on that there or not. I know in Charlotte, NC it would require a roommate or possible two.

A 23 year old should have a roommate or two. I'm skeptical that any young 20 year old is any worse off than we were in the mid 90's.

You really just have to look at the numbers. I’m not going to get into a long debate about it because it always ends up in the same place. I know what I started out making and my expenses when I started nursing in the early 2000s vs what we now start nurses at and what the living expenses are now in my area. My rent, the average car loan and the average student loan payment was around 30% of my gross income. It’s now roughly 45%. And these are kids making 50% more than most kids their age.
Living expenses

 

[massraider]

A 23 year old should have a roommate or two. I'm skeptical that any young 20 year old is any worse off than we were in the mid 90's.

For real?

 

[Joe Schmo]

My local county has outpriced it's housing such that fire, police, teachers, nurses, landscapers have a difficult time living where they work And those better off folks in the western part of the county(gated homes and such) have actually voiced their disdain for Those section 8 people coming into the county in subsidised housing. It's been said on social media that hard work=money therefore the poor people should work harder. I don't get that mindset at all.

 

[Joe Schmo]

I moved into my first solo place at 18 and paid for my life expenses with the salary from my warehouse job that offered mucho ot. I was young, single and living on my own in 1989. Not sure I could do that today based on the pay rate today at some of the same jobs I started at back then.

 

[the moops]

A 23 year old should have a roommate or two. I'm skeptical that any young 20 year old is any worse off than we were in the mid 90's.

For real?

 

[Grahamburn]

A 23 year old should have a roommate or two. I'm skeptical that any young 20 year old is any worse off than we were in the mid 90's.

For real?

A pint of domestic beer is like $6 right now.

 

[guru_007]

You know, it's funny because for the overwhelming majority of people, if you ask them how the economy is going, it's only about their household. Few can see the forest through the trees.
And all of this talk about the housing 'bubble', do you think that this is unique to the United States?
Housing prices in most industrialized nations are extremely high and take a very high percentage of take home income. Take a look to our neighbors to the north. Housing all over Canada is extremely pricey. Try looking to rent in London, Tokyo, Hong Kong, Paris, etc...
Housing prices in the U.S. are not going to crash. There is some overvaluation in certain pockets, but if/when mortgage rates drop, you think that home buyers are going to be less interested in buying? More demand, less supply, prices go up.

From where I'm sitting, the economy is doing swimmingly. However, the national debt, and the servicing of the interest on the debt are alarming.

 

[the moops]

A 23 year old should have a roommate or two. I'm skeptical that any young 20 year old is any worse off than we were in the mid 90's.

For real?

A pint of domestic beer is like $6 right now.

And new McDonalds workers make 20 bucks and hour.

 

[fruity pebbles]

A 23 year old should have a roommate or two. I'm skeptical that any young 20 year old is any worse off than we were in the mid 90's.

For real?

A pint of domestic beer is like $6 right now.

And new McDonalds workers make 20 bucks and hour.

You think $20 an hour in California is living large? Most are only getting part time hours now too.

 

[the moops]

A 23 year old should have a roommate or two. I'm skeptical that any young 20 year old is any worse off than we were in the mid 90's.

For real?

A pint of domestic beer is like $6 right now.

And new McDonalds workers make 20 bucks and hour.

You think $20 an hour in California is living large? Most are only getting part time hours now too.

California is its own animal.

Also nobody is talking about living large. A 22 year old should be struggling

 

[Scoresman]

A 23 year old should have a roommate or two. I'm skeptical that any young 20 year old is any worse off than we were in the mid 90's.

For real?

A pint of domestic beer is like $6 right now.

I ordered Five Guys delivery for just myself the other day and it was $32.

 

[fruity pebbles]

A 23 year old should have a roommate or two. I'm skeptical that any young 20 year old is any worse off than we were in the mid 90's.

For real?

A pint of domestic beer is like $6 right now.

And new McDonalds workers make 20 bucks and hour.

You think $20 an hour in California is living large? Most are only getting part time hours now too.

California is its own animal.

Also nobody is talking about living large. A 22 year old should be struggling

It’s not just 22 year olds, it’s 32 year olds who are struggling. Like I said a few posts ago, just look at the numbers. We didn’t have it tough compared to today. We had roommates to save money, they have roommates to just get by with no hope for anything else. You are the type who infuriates the younger generations.

 

[IvanKaramazov]

A 23 year old should have a roommate or two. I'm skeptical that any young 20 year old is any worse off than we were in the mid 90's.

For real?

A pint of domestic beer is like $6 right now.

And new McDonalds workers make 20 bucks and hour.

You think $20 an hour in California is living large? Most are only getting part time hours now too.

California is its own animal.

Also nobody is talking about living large. A 22 year old should be struggling

It’s not just 22 year olds, it’s 32 year olds who are struggling. Like I said a few posts ago, just look at the numbers. We didn’t have it tough compared to today. We had roommates to save money, they have roommates to just get by with no hope for anything else. You are the type who infuriates the younger generations.

My wife and I got married in our early 20s, rented an apartment for a few years while I was in grad school, and then promptly purchased a starter house located 10 minutes from the office just in time for kid #1. Looking back, that was definitely a case of playing the game on easy mode. Single people who live in major cities just face an entirely different set of issues that I'm not even competent to comment upon. Add in student loans, which were a non-issue for us, and no I would not want to trade places with young people today.

 

[Dinsy Ejotuz]

But isn't that normal? I lived with roomates....basically forever! Through college, after college through my 20s (lived with 3 other people in two different places from like 23-29),

Same. I had a legit, good job -- after the S&L recession ended and a hiring freeze was lifted so I could sign on -- and made $22k a year in 1991. Had 2 roommates for a year, then 3 for 2 years, then 2 for 4 years, then moved into a 1-bedroom apartment for 8 years. I could have bought by 2004 or 2005, but the prices were obscene and the value felt wrong.

 

[Dinsy Ejotuz]

Single people who live in major cities

I do think this is a big part of it.

 

[NutterButter]

But isn't that normal? I lived with roomates....basically forever! Through college, after college through my 20s (lived with 3 other people in two different places from like 23-29),

Same. I had a legit, good job -- after the S&L recession ended and a hiring freeze was lifted so I could sign on -- and made $22k a year in 1991. Had 2 roommates for a year, then 3 for 2 years, then 2 for 4 years, then moved into a 1-bedroom apartment for 8 years. I could have bought by 2004 or 2005, but the prices were obscene and the value felt wrong.

Yeah that period in the mid aughts was comparable to today. Prices were bonkers and rates weren't great either. It took 14 years before my house returned to the price I bought it at. way to time the market.

 

[FreeBaGeL]

Kind of funny this thread has been around for a year where the economy has been objectively quite strong. Inflation has stabilized from 2022. Unemployment has stayed sub 4%. NASDAQ is up.

The economy right now is just everyone bitching about how impossibly unaffordable everything is and then buying it anyway, magically being able to afford it.

I mean we have this thread complaining about the economy and the next thread down is the "I went into Costco for a hot dog and came out with $800 worth of stuff I didn't need but felt like buying anyway" thread.

Things are definitely harder for younger people now than they were when we were younger. But the change in asset prices is only half of that. Half of it is just that society has changed into a much more experience driven society, and people spend (A LOT) more money on different things now. That's not a bad thing (it's a good thing!), but it costs a lot more.

It used to be that a starter home was an American dream and that was what you worked and saved for. We took small vacations once a year and big vacations a couple times a decade. Most of us didn't do a big international trip until we were in our mid 30's. We ate out sparingly.

Now you can barely find a 30 year old that hasn't been to 16 different countries and who doesn't travel a half dozen times a year, and who doesn't eat out for the majority of their meals. Money is being spent on different stuff, but the home thing is treated like it's supposed to be automatic because the old people that didn't spend nearly as much money on all that other stuff got one. Partially wanting to have their cake and eat it too. I realize this doesn't apply to everyone and homes are empirically more expensive now, but it's not like only old people are spending to drive up prices. Prices are high because everyone, including young people, keeps spending like crazy and can stomach the price increases, even if they post on facebook or FBGs on their brand new iPad that they can't.

 

[FreeBaGeL]

A 23 year old should have a roommate or two. I'm skeptical that any young 20 year old is any worse off than we were in the mid 90's.

For real?

A pint of domestic beer is like $6 right now.

I ordered Five Guys delivery for just myself the other day and it was $32.

But you did buy it.

Prices are high because the demand is there, and people are willing to pay it. Even if they post on FB/FBGs that they're not.