re: Kids wanting change and socialism questions..

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All you have to do is watch Caleb Hammer

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Not the population being discussed by AM or myself.

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I have a problem with people refusing to understand that pricing has outpaced wage growth which is why some folks are struggling. It doesn't matter how hard you work if your dollar can't keep up with the prices charged for goods and services.

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Overall pricing has not out paced wage growth this is a farce. Pricing for housing has and it's been that way since the beginning of time. It's nothing new. Here's the thing that apparently you and others don't seem to understand about the price of housing compared to wages. As long as rent is more than one month's pay or the median price of a house is more than 1 years salary the delta between the two will get wider every year when annualized over time. It's simple mathematics.

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The 1980s, 1990s, 2000s, 2010s, and 2020s: Across every complete multi-decade stretch since 1980, national home price growth has decisively outpaced median household income and wage growth.

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The problem with your wage growth argument is that you completely ignore individual growth throughout a career but instead focus solely on the adjustments to the overall pay chart. Additionally, the wage growth discussion completely ignores discretionary bonuses which can be a significant chunk of change for 40% of the work force.

Back to your original point. I would be willing to bet the individual who was paying $400 for rent in 1999 can afford the $1800 rent today because his wages have likely outpaced housing significantly.

I would also be willing to bet that if the vast majority of this board annualized their individual rate of wage growth since they entered the work force full time it will be much higher than 3.5%.

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Back to your original point. I would be willing to bet the individual who was paying $400 for rent in 1999 can afford the $1800 rent today because his wages have likely outpaced housing significantly.

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Irrelevant. I'm sure he can. But he's not looking to rent an apartment in Athens anymore. Students are. Young people who aren't making money yet and young professionals who haven't had the opportunity for your wage growth theory yet.

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Let me guess they are getting roommates to split costs until they have enough wage growth to afford a place on their own. They are definitely the first generation to have this problem.

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The lack of problem solving skills for doom and gloomers is nuts.

I moved out at 18.
I afforded it by working my rear off and splitting rent/utilities with roommates.

I've got 2 of 4 of my own kids out on their own.
Roommates.
My oldest is paying $500/month for a 4 bedroom townhome.

My second oldest is paying $650 for a 1 bedroom apartment on Lake Lanier.

They make double what I did at their age (I was paying $400/month for a 2 bedroom townhome in Athens).

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So If I am understand this right, they just dont want to work like we did.

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That's basically it with the younger generation. They think they won't be the ones doing labor if we just had communism.

And some of the capitalist hate comes from my everyone gets a trophy generation. They like capitalism until they see someone else doing better than them at it. Then they hate it.

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And some of the capitalist hate comes from my everyone gets a trophy generation. They like capitalism until they see someone else doing better than them at it. Then they hate it.

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Major part of it for sure. Envy runs rampant in our society and it is only getting worse.

There are a lot of legitimate complaints around core essential sectors like housing, healthcare, education costs, etc. Problem though, is these kids don't realize the reason these sectors are so fricked up is because of the massive amount of government intervention that is involved in them. The common theme when looking in the areas where prices haven't gone through the roof vs the ones where it has is how actively invovled out government is in them.

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some college kid was saying that we need socialism

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So some idiot who has never paid a dime in taxes wants to tell everyone how their money should be distributed.

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Wage growth have not outpaced rent/housing prices since '99. Not even close.

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They didn't before 1999 either. Please point to any 10 year period since the 1960's where wage growth has outpaced housing costs. Sure you have a few outlier years due to other market factors here and there but not a sustained model.

Guess what every year going forward the gap between the two will continue to get larger despite the growth rate being relatively the same.

It's simple math of compounding growth rates.

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They didn't before 1999 either.

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Nobody ever claimed they did. You're the only one that made a claim that the person's wages outpaced the housing price increase. I may have spoken too soon when I gave you the benefit of the doubt that you just didn't actually read the full exchange before commenting on the other poster's example.

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Please point to any 10 year period since the 1960's where wage growth has outpaced housing costs.

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1965-1975. That was easy.

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You're the only one that made a claim that the person's wages outpaced the housing price increase.

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No, I said they outpaced inflation and rate of growth between housing and wages are relatively the same.

I've been screaming from the rooftops that it is fundamental math that the gap will be widen every year.

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1965-1975. That was easy.

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And the gap between the cost of housing and wages doubled during that same 10 years.

Look at the graph in this article showing the widening gap between the two.

Graph

From 1965 to 2025 median wages have grown nominally 4.71% per year and housing has grown at 5.18% actual gap has risen from $13,000 to around $300,0000 with basically 0.5% difference in the rare of growth between the two.

The problem isn't wages or the price of housing they are both following reasonable growth rates. The problem is that we are at a point where you need to look at changing the borrowing terms because the gap will continue to grow every year.