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re: Millennials will spend 45% of income on rent before age 30
Posted on 3/27/18 at 11:23 pm to Mingo Was His NameO
Posted on 3/27/18 at 11:23 pm to Mingo Was His NameO
quote:
quote:
Now, you may work the exact same hours wherever you live, but working those extra 44 hours per month could have led to a bonus of X% higher or a promotion Y% quicker if you are salaried.
Or you get 44 more hours of not sitting in your car. As someone who will go weeks or even months working 70 or 80 hour weeks, I value my time off and don't want to spend it sitting in traffic for $150/month
It's our natural inclination not to think of these things in terms of opportunity costs. Our culture does not think like that, and our education system doesn't really teach it, though many understand it implicitly.
In economic terms, every single decision you make like this has a cost, and every single decision you make like this assigns an economic value (benefit) to those choices you do choose to make. It's just that most people don't realize it.
44 hours a month in a car commute is one hell of a cost for almost anyone. The implicit assumption in that decision is that the decision-maker values his or her time with the company or with the family (take your pick) less than someone who receives a similar salary but is only a 20 minute commute from the office.
This post was edited on 3/27/18 at 11:25 pm
1
Posted on 3/27/18 at 11:25 pm to AbuTheMonkey
quote:
In economic terms, every single decision you make like this has a cost, and every single decision you make like this assigns an economic value (benefit) to those choices you do choose to make. It's just that most people don't realize it.
Utility baw.
Posted on 3/27/18 at 11:26 pm to lynxcat
quote:yeah. no fricking way. i don't understand how they can charge so much for so little.
700 sq ft is going to be $1200-1350/month for a 1/1 and a two bed room will push $1800-2200.
Posted on 3/27/18 at 11:26 pm to fallguy_1978
quote:
Nobody is forcing this on them. Move somewhere more affordable and commute.
Not everyone wants to live in the suburbs and mow grass.
Posted on 3/27/18 at 11:29 pm to PurpleandGold Motown
quote:
Not everyone wants to live in the suburbs and mow grass.
Probably benefit those paying almost half their income in rent
This post was edited on 3/27/18 at 11:30 pm
Posted on 3/27/18 at 11:30 pm to lynxcat
quote:
I’m considering a move closer to work which is farther out of the city and my rent will likely go up. Class A Luxury apartments are going to be expensive regardless of the area of town in a big city.
700 sq ft is going to be $1200-1350/month for a 1/1 and a two bed room will push $1800-2200.
You're in Dallas right? Those prices are pretty spot on, but I just moved and literally every place was running 1-2 months free rent. The place I actually moved into wasnt offering as good a deal as some others in the area and just told them if they matched I'd sign that day.
I say all that pretty much to say, those prices may be a bit inflated because almost everywhere offers some sort of special.
Posted on 3/27/18 at 11:30 pm to lynxcat
I pay $1400 for 400 square feet in DC, and I think I'm getting a deal. 
Posted on 3/27/18 at 11:34 pm to GreatLakesTiger24
quote:
About 50% of Millennials who have student debt said they are uncomfortable taking on a mortgage.
Shave the ironic beard and go to welding school on the GI bill, so you can buy a house.
Posted on 3/27/18 at 11:36 pm to RogerTheShrubber
We all make choices. I'm not going to judge anyone else's. I bought a house at 25 and it was a terrible decision.
Posted on 3/27/18 at 11:37 pm to PurpleandGold Motown
quote:
We all make choices. I'm not going to judge anyone else's. I bought a house at 25 and it was a terrible decision.
I built one at 21 and am grateful I made that decision.
Posted on 3/27/18 at 11:56 pm to Mingo Was His NameO
The place I’m considering the most is 6 weeks free. It has about a $2000 value so it moves the needle. Most of the decision is on the value of time. It would cut my drive down to less than 5 minutes.
I’ll be shocked if my current place matches 6 weeks free. Only places in lease up offer those deals and I rarely see existing apartments willing to match it.
I’ll be shocked if my current place matches 6 weeks free. Only places in lease up offer those deals and I rarely see existing apartments willing to match it.
Posted on 3/28/18 at 12:24 am to tigerinthebueche
quote:
So, yeah, no. I mean, like, they have to live within walking distance to the bars and restaurants so they can live green and not have a car. So like they need to be downtown so they can be inclusive and diverse but, you know like, they don’t want to be poor.. But like they don’t want to spend a lot of money.
I mean like you know?
I'm a gen Xer and all that "like" stuff is, like, just as representative of us, if not more, than the Millennial's.
Posted on 3/28/18 at 12:34 am to fallguy_1978
How much is your time worth? If you work an 8 hour day plus 2 hours of commute, you are diluting your hourly rate significantly. This 2 hours could be spent working more, getting ahead, career advancement instead of driving.
Posted on 3/28/18 at 1:06 am to GreatLakesTiger24
I find it difficult as a single father (not fully, I keep my son 5 nights a week, sometimes 4) to get by. I have to rent a 2 bedroom which puts me higher in rent than my peers by a good margin. I don’t feel like I can live in the cheaper/less safe areas because I don’t want (want not need) to subject my son to danger.
I pay easily double, probably higher with electricity what I would if I was childless.
Rent is a lot harder than it used to be 30 years ago. It’s hard to have the capital to buy a home before 30. There’s a reason so many college grads move back home with their parents. I don’t have stats but it must be higher than it was in the 90’s.
I’m not complaining. I pay my way, I made my choices, I love my son and he makes the hard work worth it. But the old budget of 1/3 income on rent can be very hard to find in a city. Gas is more expensive so with time and cost of transportation the burbs aren’t always cheaper.
I don’t have any answers either.
I pay easily double, probably higher with electricity what I would if I was childless.
Rent is a lot harder than it used to be 30 years ago. It’s hard to have the capital to buy a home before 30. There’s a reason so many college grads move back home with their parents. I don’t have stats but it must be higher than it was in the 90’s.
I’m not complaining. I pay my way, I made my choices, I love my son and he makes the hard work worth it. But the old budget of 1/3 income on rent can be very hard to find in a city. Gas is more expensive so with time and cost of transportation the burbs aren’t always cheaper.
I don’t have any answers either.
Posted on 3/28/18 at 1:45 am to GreatLakesTiger24
quote:
Some of this trend can be attributed to many Millennials preferring to live in downtown urban areas paying rent that they know is way too high, rather than buy a home
Why the frick as a young urban professional would I want to start my real adult life out in the burbs, commute into work, and isolate myself from the rest of people similar to me like that? Yes it’s more expensive and less fiscally responsible but it’s a lot harder to go back and do this when you have many other things to worry about as you get older. Lord people are so quick to want to attach labels and biases to people.
Posted on 3/28/18 at 2:05 am to GreatLakesTiger24
That number is based on 8 years from 22-30. Based on the percentages provided, the average salary is about $32,000 a year. This is one of the problems with today's millennials. They get huge student loans for jobs that average paying $32k on average over 8 years. Then they pay a lot for rent and wonder why they cannot pay back their student loans. I rented for about 7-8 years and paid more than their average, but I also had a starting salary at least twice that (and that was 20 year old ago in terms of dollars) and grew fast during those 7-8 years.
I realized these are averages and many are probably doing much better and others doing much worse, but it is time for people to get smarter about college choices and student loans. I thought Millennials dressing like homeless people was a fashion choice, but they might just not have any money for clothes after rent, student loans, cafe lattes, and body piercings.
I realized these are averages and many are probably doing much better and others doing much worse, but it is time for people to get smarter about college choices and student loans. I thought Millennials dressing like homeless people was a fashion choice, but they might just not have any money for clothes after rent, student loans, cafe lattes, and body piercings.
Posted on 3/28/18 at 5:46 am to GreatLakesTiger24
How out of touch are some of you people?
$95,600 over 8 years assuming you graduated by 22 comes out to $964/m in rent. Right now go find a 2 bedroom apt ANYWHERE for cheaper that isn’t in a terrible part of town. Hell my wife and I had an apt in BR right after we got married that was 700sf and we paid $850/m and that was over a decade ago.
This is the same bullshite debate about buying housing they supposedly can’t afford like people haven’t realized what houses cost now.
$95,600 over 8 years assuming you graduated by 22 comes out to $964/m in rent. Right now go find a 2 bedroom apt ANYWHERE for cheaper that isn’t in a terrible part of town. Hell my wife and I had an apt in BR right after we got married that was 700sf and we paid $850/m and that was over a decade ago.
This is the same bullshite debate about buying housing they supposedly can’t afford like people haven’t realized what houses cost now.
Posted on 3/28/18 at 6:00 am to GreatLakesTiger24
When I was young we lived in the ghetto with a lot of roommates to pay the rent. The more money I could save the closer I was to a down payment on a house.
Cool thing about ghetto is all the money you can save on fireworks during New Years and Fourth of July celebrations.
Cool thing about ghetto is all the money you can save on fireworks during New Years and Fourth of July celebrations.
Posted on 3/28/18 at 7:23 am to Terry the Tiger
quote:
They get huge student loans for jobs that average paying $32k on average over 8 years
no they don't 
Posted on 3/28/18 at 7:35 am to RogerTheShrubber
quote:
Renting isn't a problem. Paying over 40% for rent is a terrible decision
Unless you want to live in LivePD territory, 40% for rent sounds about right.
Renting in the suburbs...well, there aren't very many apartments in the suburbs. As a result, you rent a house that will cost just as much as the downtown apartment simply because it is a bigger property.
This post was edited on 3/28/18 at 7:36 am
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