#housing #HousingCosts #YoungAdults #BuyingAHouse #SellingAHouse
It’s not easy being a young adult today, trying to build a life.
As Bill Torpy, columnist for The Atlanta Journal-Constitution, points out, the median price for a house in Atlanta today is $405,000. He discussed the perils of young adults and housing in his May 12, 2024, column.
If you are 20-something, married or single, can you afford $405,000 for a house?
With rents on apartments also skyrocketing, it’s no wonder many young people are still leaning on “the bank of mom and dad” for help.
There are a number of issues driving up housing costs.
In decades past, a young person could get an affordable apartment to live in until he or she was able to buy a house. After all, The American Dream included home ownership.
They would buy their first house and live there until they outgrew it. Then, they would sell it to buy a bigger house. They would keep trading up in housing size as needed, until they reached retirement age.
Then, they might sell their bigger house and trade down to a smaller one, perhaps in a retirement locale with the various amenities for older folks.
That pattern is more or less out the window today. Buying and selling real estate has become something of a cut-threat endeavor.
In those old days, a person starting out might offer a price for a house that was a bit less than the seller had asked. The seller, looking for a firm sale, would usually accept. Today, it’s more likely that a buyer will have to bid up from the asking price, and might still lose out.
The demand for housing today is way over what the supply is. Because people can’t make any more land, most property available for building has been spoken for. That caps the supply at a certain level, but the population has grown considerably from decades ago, and keeps growing.
Also in the housing mix are entities such as property management companies, hedge funds and real estate investment trusts that tempt sellers with cash offers, leaving many young buyers out of luck.
Meanwhile, apartments and condos are going up like crazy in some areas.
Often, new apartments mean high rent, and new condos can be overpriced and have high owner fees to maintain common areas etc.
Tiny houses, and housing made from shipping containers also have been trending. These are not an option if one plans to have a family, or even a spouse.
Something else is happening today. Many young adults want everything now. They won’t settle for a fixer-upper, or rooms they view as too small. Many want what they are used to – what their parents have. And, they want it now. They are unwilling to accept something less, and work up to what they ultimately want.
If you are young, and do not want to live with mom and dad for the rest of your life, flexibility is the key. Chances are, even if you buy or rent someplace that’s not exactly what you want, figure on making do until you can save enough to afford more. As you trade up, you may not get everything you want at each stage. But, with each stage, you may get something more.
It’s not always possible in some areas to find adequate, affordable housing. But, if you keep looking, you may run into something you can work with. By the way, try not to get too comfortable living with mom and dad.
Remember, too, that a house is a house. A home is what you make with the house you have.
Peter