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.

FACT:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2019 demands.

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

We have a new comment system! We are now using Coral, from Vox Media, for comments on all new articles. We'd love your feedback.