#housing #YoungAdults #HighCostOfLiving #HousingPrices #parents
If you are a young adult, do you believe you will have a better life than your parents?
In decades past, and, perhaps, still today, parents’ goal was to give their child(ren) a better life than they had.
But, young folks today, in large numbers, don’t see that as a possibility.
Many of them still rely on help from their parents to get through daily life.
Remember last week, we talked about the cost of going to work? Now, we will examine one of the effects.
Perhaps this problem began as home prices really started to accelerate back in the 1970s. Many children who grew up in relatively affluent towns could not afford to live there on their own as adults. They could not afford the home prices or apartment rentals.
So, if they wanted to stay close to home, they moved to nearby towns and cities that were not nearly as affluent and had more affordable housing options.
Perhaps, they thought, someday they’d have enough money to move back to the town in which they grew up. Maybe, they could even inherit mom and dad’s house when they died. This was when living at home with mom and dad was, shall we say, less desirable.
Today, young people are really feeling the squeeze. The jobs they can get, even with a college education, don’t pay much more, figuring for inflation, than they did back in the 1970s.
But housing costs during those decades have ballooned. Housing that was unaffordable in the 1970s is completely out of reach today for young folks.
Even housing in the less affluent towns has become more difficult for young folks to buy, or even rent.
Add to that the rising cost of everything else: food, fuel, day care, education etc., and starting a life in one’s 20s today without help is nearly impossible.
Many in that age group are postponing marriage, children and other life expectations (at least their parents expect them) because of costs. Never mind that some of them are already burdened with student loan debt.
Today’s employers are not seeing young people coming into the workforce in droves because they can’t live on what they will be paid.
Companies are expanding and relocating to new environs, thus creating jobs. But few of the jobs they are creating will go to people who already live in those places. They will go to people who will move to those locales because of the jobs, which brings increasing property values that aggravate the problem.
As an aside, American retirees moving overseas to less expensive countries are pricing the young locals there out of some of their markets.
For many young people today, getting ahead financially is a somewhat foreign concept. How to survive, day to day, is a more pressing matter.
There are signs that wages are rising, contributing to inflation and creating an economic chicken-and-egg roller coaster for everyone.
So, starting an adult life is hard today. The idea of finding a first apartment, or house, that is affordable, then trading up over time may be foolhardy thinking.
A combination of public and private solutions to this problem are in demand right now. Perhaps the catalyst to solving this problem may lie in an idea no one has yet conceived.
Still, it’s vitally important for young people to cultivate and maintain optimism. You are the future. You, and your cohort, may be the ones to solidify that future for your whole generation.
Peter