re: For all the Millennials crying about housing costs, here you go

Millennial here. On my third house. It's Gen Z that is having/going to have a harder time.

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$200/sqft to live in a DSLD house is insane.

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What's insane is to not see the forest because of all the trees.

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Price Range $202,990-$213,990

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Let's use this as an example:
1. Be an early buyer in a DSLD subdivision.
2. What's an early buyer? Buy the 1st house finished in the new subdivision.
3. Say that house is 203K
4. There are 60 homes in the subdivision
5. In 18 months, the subdivision will be completely built out.
6. Sell your 203K home for 230K once the subdivision is completed.
7. Profit = 27K

Do this 3-4 times in a brand new DSLD subdivision
and with in 6 years the young couple will pocket 110K downpayment.

New Couple says:
"Oh it's not worth doing that and having to move so often and deal with all of the dust and construction going on"

My response:
Well, you don't want it bad enough.

Seems totally plausible if you simply ignore transaction costs, tax implications, moving expenses, etc. which would reduce your $110k closer to $0 than $110k.

(no message)

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"20 miles outside of the city center" could be over a 45+ minute commute depending on the city at rush hour. Not wanting to dive 1.5 hours a day is not being lazy, it's totally reasonable quality of life decision. Couldn't imagine doing that with small children. Growing up my dad had an hour commute and it sucked getting to only see him for an hour or so in the afternoons on the days he worked.

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Just playing devils advocate here but that also could mean it's a 20-30 minute drive. Which is perfectly reasonable. If someone can't live further than 10 minutes away from their job that is on them and yes, being lazy. Certainly if it causes you not to buy a house.

Let me say, I think buying a house today is too hard on the younger generation. Mine included. But it does seem that people these days aren't willing to make many sacrifices to own a home.

Our first home was in a less than desirable to say the least. Remodeled it and despite the crappy neighborhood, me and the Mrs. look back on that house with fond memories. I drove all over for work while living their too. Selling that home let us upgrade to a nice neighborhood. Last year we upgraded to a house on the golf course. A big driver in that was pulling the trigger on that small home in a bad neighborhood.

I have sympathy for how hard it is for some to buy a house now compared to previous generations but I also have little sympathy for those not willing to make sacrifices to buy their first house.

1. The 110K is extremely low and likely 150.
2. When I was 20-30, it was 0 moving cost because me and m,y friends moved everything.
3. No realtor fee because it's a new subdivision getting foot traffic that you can coat tail on.
4. the only expense is closing cost which is normally covered or extremely discounted by the developer - ESPECIALLY since they know you will be moving into their next new subdivision.
5. so i'll give you a few thousand expense for every transaction 3000 x 4 = 12K
6. reduce the profit to 98K over 6 years.


not bad

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To just tell young people that the answer is to drive longer commutes or live in a shed is such a boomer take to a real problem.

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Nobody wants to hear this but the real solution to the problem is homesteading in “urban” or urban adjacent neighborhoods.

You're either building a fake timeline or ignoring tax implications as anyone that can afford a $200k home is paying $7k in tax from ordinary income per transaction.

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You're either building a fake timeline or ignoring tax implications as anyone that can afford a $200k home is paying $7k in tax from ordinary income per transaction.

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I tried to make this as simple as possible.
If you don't get it, then thats ok. I don't have the patience to explain it any better.

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Another major issue to me is the concept of a "starter home" is lost on this younger generation. When I think starter home i think of like 1000 SF, probably 2 bedrooms with maybe a full sized 2nd bathroom, no frills. Basically a place to call home while you're in your mid 20s.
How many times do we have to point out that those homes don’t exist anymore?

And the areas that do have those homes are generally shitholes.

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Of course they exist, people just turn their noses up at them because it's not their dream home. I live in the Birmingham area and just drew a little circle in areas that you can reasonably get to downtown birmingham in 30 minutes or less. Set the parameters at less than $165 with at least 2 bedrooms. There were 38 results with the most expensive one being a townhome in the extremely booming Homewood areas just south of dowtown and just north of Vestavia. Is it going to be somewhere to live for a decade or when you start having kids? Definitely not, hence "starter" home. But I refuse to believe that places like this simply dont' exist.

If you're in NY or San Francisco then yeah, they definitely don't, but if you're 22 and attempting to purchase a home in those areas you're well aware of what's in store and should already be expecting to rent or move anyway. In any "normal" city in any normal part of the rest of the country there's plenty of places that still exist for a young person. It's just not going to be luxurious.





That one was on the high side of my parameters because of its location. There are some places further down around Hoover but still above 459 that are thousands cheaper. 5% down on a home like that is less than $8K. I know there are college grads wiht a full time job that can put down $8K on a home to call their own.