Buying a House Sucks for Millennials

Standard & Poor’s released the Case-Shiller Housing Index for August today, so that seemed like a good excuse to follow up Monday’s post about the feeble growth of millennial income. Here is income growth for 25-34-year-olds vs. housing prices since 1975:

The income of young adult families has gone up about 18 percent since 1975. Housing has gone up about 65 percent. So if you remember buying a house in the 70s, and how tough it was to make the payments, multiply that by two-thirds to see what young adults have to put up with today.

And if you’re thinking that mortgage rates are lower today than they were in the 70s, think again:

Real interest rates are lower than they were in the 80s, and a couple of points lower than they were in the 90s. But that’s it. Buying a first home just sucks these days unless you’re lucky enough to be in the top 20 percent or so.

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DEMOCRACY DOES NOT EXIST...

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In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily crazy—Mother Jones' journalism is driven by one simple question: Will America will move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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