re: Millennials will spend 45% of income on rent before age 30

How dare you spend your own money the way you want to.

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AbitaFan08

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Yep. How many of those people that buy that house in their mid 20's move within 5-7 years? Probably most of them, so they just start their mortgage over again. The housing market is pretty crap right now. Interest rates will and are starting to go back up which will drop home prices. Buying a house for the sake of buying a house isn't a "better" move. If you can find the right house, go for it. Otherwise, nothing wrong renting until the market is in a better position for a buyer.

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Yeah, I don't honestly understand why this is such a big deal.

Your twenties is the time of your life where (most) people don't need a home because they don't have families and aren't married. Given the option of a house outside the city in a quiet neighborhood primarily comprised of families and older people, or an apartment in the city in the middle of everything, why is it so surprising that they are choosing the latter? Seems like a no brainer to me.

It's also a time in your career where you're low on the totem pole and have to work hard to get ahead. So paying rent and living in a smaller apartment closer to your office is a good thing. Of course, I realize everyone here will just point to the "fact" that millennials don't actually work.

It's amazing how much people on this board care about what millennials do with their money.

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Well said.

If you are single in your twenties I don't get the rush in buying a house either. Especially if you don't see yourself staying in that area for a long period of time. I got into a similar discussion with a co-worker that believes I should move to the Denham Springs area and by a fixer-upper in that area. I told him that I don't intend on staying in Baton Rouge deep into my 30's and that Denham Springs isn't the type of place I want to live.

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You hear from a lot of millennials that they don't want a home cause they don't want to be tied down. Well you still have to live somewhere and they obviously just arne't getting the concept of equity.

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Let's say I buy a house in my 20s. I have closing costs and realtor fees and any other expenses that come with buying the house. 2 years later I get job offer and have to move. To sell the house, I have those same fees. If my house has appreciated, let's say 5%, there is a good chance I've lost money. I gave little equity in the house in that amount of time and I've had to pay cash expenses twice. If the appreciation amount doesn't exceeded those fees then I've lost money even though the asset has appreciated.

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If you are single in your twenties I don't get the rush in buying a house either. Especially if you don't see yourself staying in that area for a long period of time. I got into a similar discussion with a co-worker that believes I should move to the Denham Springs area and by a fixer-upper in that area. I told him that I don't intend on staying in Baton Rouge deep into my 30's and that Denham Springs isn't the type of place I want to live.

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I wouldn't buy a house if you don't plan on staying in the area for long.

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Let's say I buy a house in my 20s. I have closing costs and realtor fees and any other expenses that come with buying the house. 2 years later I get job offer and have to move. To sell the house, I have those same fees. If my house has appreciated, let's say 5%, there is a good chance I've lost money. I gave little equity in the house in that amount of time and I've had to pay cash expenses twice. If the appreciation amount doesn't exceeded those fees then I've lost money even though the asset has appreciated.

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Bingo. This is not uncommon. I know every generation has had work cause people to re-locate, but it is probably most common now.

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I always love the picking and choosing that goes on when people bash millennials.

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It really is funny.

"These idiot millennials are spending a fortune on rent because they're too spoiled and selfish to buy a house outside the city. Just drive the hour each way into work like the rest of us people who have two kids and are in our forties!"

"These idiot millennials are going to colleges they can't afford because they're too good for a lesser school. If you can't pay for Harvard in cash, go to a damned community college!"

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I wouldn't buy a house if you don't plan on staying in the area for long.

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Which I think a number of millennials fall into the category that I'm currently in (Not married, little to no debt and in an area, they will likely move away from in 2-3 yrs).

Rushing into homeownership isn't a wise situation. But it seems like the older generations (some not all) are deadset on bashing us for not doing what they decided to do.

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I'm sure there are plenty of people on here that commute to Houston from The Woodlands (30+ miles in some cases)

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I commute 35miles every day. Cost about $150/mo + ~2hrs/day to commute


I'd assign a ridiculous value to get back those 2hrs/day