Their average mortgage balance is $140,000 https://www.marketwatch.com/story/n...re-23-and-younger-2018-03-08?siteid=rss&rss=1
$140,000 mortgage works out to about $660 a month (prime) which is a far better deal than renting in most cities. Gotta feeling a lot of these are starter homes bought in places like Oklahoma, Missouri, Minnesota, etc.
Of course they are homes bought where the average selling price is probably under $125,000 and taxes less than $2000 a year.... Where I am the cheapest house is over $350,000 and that's a house that needs much renovation and in area where it's just okay, on top of that if you want to live in a regular middle class neighborhood taxes will be in the range from $6000-$10,000 and the cost of a house there again around $400,000 starting....now if you want to buy a garden style co-op in a good area again a 1 bedroom will set you back approximately $200-$300k and again maintenance charges on these units which do include taxes will cost about $750-$1200 a month!!!!! So again these generation zzz'ers are probably buying in areas of the US where the average house cost is well under $200,000. Maybe they are getting handouts from their parents for down payments or maybe every one of them is getting an average salary of $100,000 right out of college....I know people with great salaries that still don't own, but rent, some paying $2000 a month for an average size 2 bedroom apartment...
A fixer upper for $18,000??? and his father agreed to finance 1/2 of the purchase??? $18,000??? Now worth $60,000-$80,000 Yep not believing that story for a second. Max that place is worth is $25k if you're lucky!!!!! When he was driving with friends one day, he saw a fixer-upper for sale in Hoquiam for $18,000. His father agreed to finance half the purchase (which Ulloa has now paid back), and Ulloa paid the other half. Now, after a little work, Ulloa rents the home. It has appreciated to be worth between $60,000 and $80,000, he said.
Prices in and around Detroit have followed a similar trajectory. So depending on the location it’s possible.
Prices across the US for homes is an absolutely crazy scale range; You could buy a home from anywhere from generally $50,000 or $500,000 or $5 Million. Most likely, of course, the bulk of those stats are cheaply-priced homes and locations. We have had a very strong economy and bull market for the past nine years...so all those kids are essentially, somewhat, rich. Or able enough, to afford a starter-ranged home.
None of them have ever been in a falling real estate market or seen a 30 year fixed above 5% hahahahhaaaaaaaa
I have owned homes in California (San Francisco Bay Area and San Diego County), Iowa, Montana, and Washington State. On the subject of at least medium size homes ( 1,500 sq ft or greater) in safe area's: CA is $750,000 to $1,000,000; Iowa is $200,000 to $350,000; Montana is $300,000 to $400,000, and WA is $300,000 to $400,000. There is "poorer area's with cheaper housing (and less safe)" and there is "vastly richer area's in all the states above," but the prices above are just the median values in middle class safe area's based on personal experience. "However, I am baffled by this average $140,000 mortgage balance? Is this in the USA and are we sure they are not talking about 1970?"
I bet most of them will do very well in life and can easily afford their homes. You just can't relate to their success. My daughter is 24 and already makes $100K US, already paid off all her student loans, and is on a nice career path. The current economy works well for certain people, not so well for others.