871–880 of 974 posts
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Assuming your father's peak income was in 1980, inflation has been about %315
With middle class incomes stagnated since about 1980, it's no surprise everybody feels a lot poorer now. They have a quarter of the effective income people in a similar position had in 1980.
> Housing is more expensive for them than prior generations I harp on this constantly. But housing is not more expensive in the majority of American metros. Adjusted for inflation the median cost per square foot of new housing is almost exactly the same as it was in 1990. (This doesn't even take into account that mortgage rates are drastically lower since then.) We get skewed on this for two reasons. One is because h…
>One is because homes today are substantially larger and have more amenities than they did in previous generations. I have noticed that most of my fellow millennials seem to have completely forgotten the concept of "starter home" and assume that as soon as you turn 25 you should be entitled to a 4 bedroom house with a pool, huge yard, wonderful neighborhood, three-car garage, etc. Among my friends that have bought ho…
"Starter homes" tend to be fewer these days, especially in desirable areas. Much of the old "starter home" inventory has been upgraded and made much larger over the years, making them not really starter homes anymore, and very few builders build small houses these days, since profits for building larger homes are higher. The closest thing to starter homes being built today are condos, but those are usually in high cost areas, so again not terribly accessible.
This is why it would be good to change zoning to allow existing single family zoned lots to be subdivided or turned into multi-dwelling lots, which can accommodate a main home and a separate "starter home". This is starting to be done in places like Toronto with "Laneway houses"
> McMansions with huge yards, white picket fences, hip restaurants within walking distance, etc.
Huge yards, white picket fences, absolutely, but where are you finding "McMansions" with hip restaurants within walking distance? Usually "McMansions" are synonymous with totally un-walkable and car-bound developments.
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I've seen a documentary about San Francisco it's crazy how middle income people are being pushed farther from the city. One teacher had several bus transfers and then a long walk to get to her job. Even bus stops where "poor" people (less than $100,000/year) are being crowded by private buses like Google forcing city buses to wait which adds to the wait down the line. Nuts!
Private buses pay to use the stops. The alternative is everyone driving. Do you think that would improve or worsen traffic congestion?
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> I saw my first house decline in value by 25%. This rarely matters unless you are looking to sell or borrow against. > We had interest rates peaking at 15%. But inflation was higher at the time. Also rates are 0% now at the Fed level, but if you are a consumer you are going to pay a bit depending on your credit score. > I didn’t have student loans but only because I didn’t go to university, just like 90% of my peer…
If you buy a house worth 4x your salary (in the ballpark of average), a 25% decline in home value means you need to spend an entire year of labor just to break even, ignoring the obvious associated living costs. The decline doesn't matter if it's temporary, but they're not always temporary. That sounds incredibly demoralizing.
I'm my early 20s and in the UK. I earn more than my Dad who is in his 50s. He managed to get a house, have money left over for an expensive hobby, decent car, the odd holiday etc. I'm a 90th percentile earner. Will 95+ percentile earner in a few years time. Yet it feels like I am not as well off as I should be. I don't live in an expensive area either. Yet I need to save so much money to even have the opportunity to…
I’m in my mid fifties and I have never had a company pension, defined benefit or contribution. I saw my first house decline in value by 25%. We had interest rates peaking at 15%. I didn’t have student loans but only because I didn’t go to university, just like 90% of my peer group. Unemployment was much higher than it is now and schools were teaching subjects for obsolete careers. It wasn’t as rosey as it is often po…
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With middle class incomes stagnated since about 1980, it's no surprise everybody feels a lot poorer now. They have a quarter of the effective income people in a similar position had in 1980.
that is not my understanding. how are you defining "effective income"
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I started as a trainee broadcast engineer in London on £17,800 a year in 2003. This left me with £1,082 a month (back then student loan payments were far higher than now). Rent for a tiny bedsit with a shared bathroom was £520 a month, 2 mile walk from work. I could live further out, but commuting costs outweighed any savings. That's the equivalent of £828 a month now. Bills were included. You can actually pick up a…
There aren't studio or one bedroom below about £1200 a month in London, closer to £1500 toward the center. You're talking about Kensington in London? That's the center and one of the most expensive location in the city. Where the fuck do you see a place for £737 in there? Either it's a flatshare (that's a bit low, must be 6+ people) or you confused 737 per month with 737 per week (that'd be £3000 a month, possible fo…
The area near "West Kensington" and "Kensington Olympia" tube stations. It's technically in Hammersmith+Fulham.
Kensington borough contains(ed) Grenfell, it's not one of the most expensive places in the city, it's varied, like many boroughs.
https://www.rightmove.co.uk/properties/49989753#/ - £737
https://www.rightmove.co.uk/properties/66191535#/ - £758
https://www.rightmove.co.uk/properties/95389700#/ - £806
The £806 is prety much what I got for £520, and inflation wise pretty much the same price.
I suspect the prices are so low because of covid, I don't have any evidence of that though.
Here's a pre-covid article with some average rents: https://www.simplybusiness.co.uk/knowledge/articles/2019/09/.... Dagenham (Zone 5) studio: £688
https://www.homesandproperty.co.uk/property-news/renting/ave...
reports "Rents in the capital are down 4.2 per cent as tourists stay away and short-let landlords switch to long-term contracts, flooding the market."
I suspect rents on tiny bedsit studios are down even more, especially as weekly commuters no longer need them, and young people move to live with parents.
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I will probably be going against the grain here, but I managed to rent a flat by myself while in university years ago with a part time job in a supermarket at weekends and applying for some hardship funds and other money available at the time. Rents have risen a lot since then, but is it really impossible for someone in work to be able to afford rent? Or are they insisting on living in a fashionable part of town? (Fo…
You didn't manage to rent a flat by yourself. You were given money to do so, by your own admittance. I don't blame you for taking advantage, but you're using it to argue that young people can or should be able to make it on their own. You've just got anonymous parents supporting you in place of your own parents.
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> SF or NYC That solves my property too expensive problem how? More seriously...not super keen on living in the US to be honest. Could probably do it practically, but given my life circumstances it would be a net loss.
Well you would probably make $300k, so your income:price ratio would be more favorable.
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I will probably be going against the grain here, but I managed to rent a flat by myself while in university years ago with a part time job in a supermarket at weekends and applying for some hardship funds and other money available at the time. Rents have risen a lot since then, but is it really impossible for someone in work to be able to afford rent? Or are they insisting on living in a fashionable part of town? (Fo…
This is something that really depends on where you live more than anything. I will say there is no state currently where you can afford an apartment by yourself making minimum wage.
Neither could I which is why I shared. Is that something that isn't expected any more?