Besides the college loan debt, another big difference today is that so many young people expect to be able to buy a 4 bedroom house, 2500 sq feet, less than 15 years old, nice suburb area, with all new flooring, new appliances, granite countertops, etc.
In our area, there are plenty of 2 bedroom bungalows available for 1/3 the price, which more closely resemble the “starter” homes of a generation or two ago.
Forget it. My wife’s Beemer won’t even fit in the garage of that 60 year-old bungalow, let alone my F-250. /s
Our first home was a mobile home. All we could afford. 5 years later moved up to a small 1200 square foot house. I hated that house but stayed in it 10 years til we could finally afford what I wanted. Bought an older 2000 sq ft Spanish style on 1/3 acre with a pool and spa. Still in it even though we could afford to move up long ago. It’s paid for now.
My daughter and her husband are having that house built for them....though it’s actually 3200sq ft. But then they have a single car payment with six months left on it. Went to while working and paid off student loans within five yrsbout of college. Saved up for a down and are so excited they can hardly stand it. A great accomplishment for two very focused hard working millenials
I live in Miami now. Good luck finding ANYTHING for under $300,000, much less anything that is in any way appealing. Tiny little 1000 sq ft homes here are going for $350K, $375K, even up to $600K in the right neighborhoods. We looked in Doral, where a new townhome (very nice) can be had for about $450K. In Homestead, a beautiful 4BR/2.5BA will run you $360K, very well equipped, but the commute to downtown is hell.
If we could afford the down payment in Doral, it would be a no-brainer, as the monthly cost with insurance, HOA, and taxes would be $600 or so less than we’re paying for a tiny condo downtown that we get no tax benefit from.