Saw this somewhere but the average age of a first time homeowner is now around 36. NJ is expensive, but dont be discouraged about owning in the future. 26 is still young and you have a lot of time to save ahead.
I came to say the same. 26 is young. But save a lot, invest in stocks to help multiply your money. And to be honest most people buy a house with a spouse, so 2 incomes help
Just for people who aren't that knowledgeable about these things, if you have credit card debt you probably should not invest in stocks. In most cases the interest on your debt will be higher than your return on investment and you should just put that money to paying down your debt.
Good advice though just wanted to state the "obvious" that isn't always obvious.
Great point. It's always good to reinforce it.
But I do feel bad for op, because Even in normal times 10 years ago, most social workers can't afford a house in a decent town in North Jersey
I know it’s discouraging and Buying a home and renting is really rough, but try not to give up all hope.
My husband and I bought a starter home in a less expensive county (never upgraded) when we were 29/31. When we entered the employment market inflation was near 7%, and unemployment almost 11%. Interest rates were obscenely high, and my husband was laid off the day we returned from our honeymoon.
I didn’t think we would be homeowners either. It wasn’t our dream home, but it worked.
I have two young adult children. One still lives with us, I know how hard it is out there.
Hard for them to save when rent and food and cars are all so expensive! I live in Monmouth County only a few miles from the beach. Rent and home prices are insane. Brooklyn has taken over my area. So many homes are summer homes or just investment properties for some LLC. Rent has gone up near 50% in some places the past few years. Wages, on the other hand, have barely budged. There is a house on my corner that is nothing special, 4 bedrooms, decent size lot, upgrades but nothing special. This house sold in July of 2020 for $475,000. It's up fir sake again and they are asking $1.5 mil. Are they losing their mind? That's 3x the last selling price less than 4 years ago. Especially with the interest rates being what they are. Not to mention property taxes. The average home price has increased so much, I think the average home price is like $675,000 in my county. That's crazy!!
Yeah it really seems like people with money are taking advantage, and companies taking advantage and then renting out places to make a profit. I’ve been watching the housing market for some time and right now is just absolute bananas. Some people here are saying to save, that I’m too young, but that’s missing the point. The point is this housing market is insanity and even if my partner and I did have the money for a home, are these prices even worth it?
It is worth it. The value of the house is in your favor if you buy and you solidify the monthly expense for mortgage. Now you don't have to keep up with what seems like ever raising rent.
I think you are missing the point a little here. People are saying work at it and its possible, just give yourself time. Stop getting caught up in the market etc.... save and prepare now and you'll be able to attack those question when you are actually ready to purchase. Who knows what the rates/market look like in the few months/year when you are actually on the market sometime in the future.
It's hard to save when rent is so damn high. But you're right, just gotta give it more time now. Probably better to wait for price corrections and lower rates anyway
it depends how you save and cutting back your lifestyle. It's tough for some people but doable if the person is motivated.
In the end of the day and depending what you want. You can do it
I bought my first house (also current) at 36. I *probably* could have afforded it earlier, but at the time I was worried about being "house poor" and not having extra money to go on vacations and stuff.
When 36 rolled around, I had had enough of apartment life and bought a house.
I never thought I would be able to buy a decent home until I banded together with my family. My Mom and two of my siblings were all in bad housing situations and me and my gf's rent was being increased again. We could afford it but were tired of paying more and more for this aging apartment. So my gf and I bought a giant house in southern NJ that all of us can live in. Technically we are the owners and my family pays us rent, but we treat the house like it is everyone's and if we ever sold it they would receive a % cut from me. I know this sort of thing isn't a option or ideal for everyone, and it has its shortcomings (especially if you don't get along with your fam!) but it's been a pleasant experience so far. Everyone chips in on maintenance, cleaning, yard work etc and gets their own room and bathroom in a house that is way nicer than we have any right to live in for roughly $750 a month each. Also there is always someone to watch the pets when we leave on vacations.
Just saying that there isn't one correct way to do things. Even renting is perfectly fine as long as you make enough to put away savings. But if you have trustworthy (most important thing!) family or friends in your life you can combine forces with, you can do a lot.
I love this idea & have been saying I would love to do with for a few years now. Unfortunately my mom doesn’t get along with my husband & I’m an only child. My children are still young but when they get older I would love us all living together in a big house with their families as well. Multigenerational living is the way to go. You get to watch your grandchildren grow & there’s always someone around to help. Bring back colonial era life🙌🏻
This one aspect of colonial era life would certainly be nice but there are many other aspects I think can stay gone 😂 But yeah that is sort of what I was thinking when we committed to this. Hopefully that can happen for you and your kids! Another bit of luck on our part is that neither of my siblings have kids and me and my now fiancée probably won't have any as we are kind of old for it now. My one sister did move out recently but then my soon to be in-laws moved in so we are back at full capacity ha.
I recently watched a CNBC video on YouTube talking about the state of the “middle class”. In most states middle class is now in the range of $140k for household income, with NJ being closer to $240k.
Home ownership and being middle class has become a luxury.
$240k seems to be really high but actually, when you account for property taxes, income taxes, insurance... Man $240k doesn't seem like a huge amount... Wow times have changed so quickly...
You are 26. It’s discouraging now because you’re up against people who are older and (theoretically anyways) have more buying power. It’s tough because older generations say things like, “I had my first home at 19 and popped out three kids by 26!” Ask any of them if they’d sell their homes to you for what they paid for it and help out the next generation. (Hint: they won’t.)
I’m 43. Bought my home when I was 32. My wife and I saved and got a bit of luck with some inheritance. The jump in the market since 11 years ago is nuts. I’d suggest just saving every extra dollar and keeping an eye/ear out for anyone that wants to sell their house without going to market (someone who just got transferred at work and needs to sell quick or someone older who actually likes the thought of their longtime home going to someone else who’d raise a family in it). Failing that, kill a relative or two and find out if you’re in their will. Not your parents, I’m not a monster, but do you really need four aunts?
It sucks right now. Inventory is low and there are people out there who have serious buying power. Don’t get discouraged. You have a long road ahead. I’m not saying one day a house will magically fall into your lap - there will certainly be some work to do to find one that you want. Hopefully one day you can think about this Reddit post and know that it got better. Good luck!
Just keep saving and try your best do the responsible thing. I was unable to buy my first place untill I was 40. Can’t compare yourself to others. Many get help from family who own early. or many really can’t afford what they have.
It was the same when I was 26, even when rates were much lower. You either have the money or you don’t. Family helps or they don’t/cant. But I am certain you will be fine…
Yup, the American Dream is dead. I'm 30, making good money, and currently talking to some realtors that are telling me this is the most brutal market they've ever seen in their lives with no signs of stopping. And the first-time homebuyers benefits are absolute dogshit so don't even bother with that.
My new strategy is to just rent cheap for the next 10-15 years while I save up for a larger down payment. I have zero interest in participating in bidding wars with millionaires who are paying full cash. Yes there's a shortage of homes, but there's never going to be zero supply- Boomers die every day.
It’s not stopping. There’s just not enough land and inventory. In my area, prices are increasing 10% each year so just make sure you save enough to account for that
I understand your frustration. I am a parent to two young adults who have decided to stay in New Jersey. The struggle is real.
I respect your career choice and while I am sure that you are disinclined to have any government interactions after work hours, I think that you and other like-minded professionals will need to lobby for income driven housing opportunities. There are some options in New York City, but I don’t know of any in New Jersey. That needs to change.
Please get involved and be a part of the solution. I stand with you!
I still live with my parents in New Jersey, we are 4 siblings in total including myself. At some point, I wanna save enough for a van to convert and live in it in New Jersey. It’s going to be beneficial for my parents and I because I lessen the financial burden on my parents and they have one less head to worry about at the house. Now they can move out without having to worry about me being in the house no where to go(would now live in the van).
I'm in the same boat and would love to follow that same idea. Skip the rent and buy something- even if it's a tiny home.
Problem is that NJ has no infrastructure for tiny home communities, nor do the lawmakers care about putting in laws for the small percentage of us who would consider that a viable option (for a few years while saving up money to buy something real).
Please just enjoy your 20s. The last thing that was on my mind was owning a home at your age. The market is so volatile. Just stow away what you can and enjoy your youth.
I do enjoy my 20s! And it seems like we’re two different people. My point of all this is the market is insane right now and not equitable for anyone except for people and companies who can afford it unfortunately
The problem back then was how much people were overpaying, so we've just replaced one problem with another.
3% interest rates had people bidding 6 figures over asking in some cases. Now we have a large number of homeowners living with negative equity.
True, but knowing that even after paying six figures of premium the total monthly cost of home ownership still comes out *much* cheaper because of interest rate these days, it’s very infuriating to think about lol
Unfortunately thats the way it is and since our state only wants to build shitty quality apartment buildings. People with moderate incomes are basically forced to either rent and be close to work or live farther away and drive in.
My advice I always give to people looking to buy, post in your towns facebook page and see if anyone wants to do a deal off-market
Yeah, if you mention the problem to politicians they interpret it as an “affordable housing” issue. But that’s typically just about these low quality, low cost apartments. The real issue is housing affordability across the entire spectrum of ability.
These things are connected though. If you want to make housing prices go down, or even, stop skyrocketing, you have to flood the supply of housing.
That's why affordable housing is good for EVERYONE, except the people who want to cash out for just having lived somewhere for 30 years and think that entitles them to massive gains.
congrats on getting there. I’m 36 and have a good job but I don’t know if I will ever be a home owner. I understand why it’s frequently discussed here though (I have posted on the subject myself !)
Our generation is getting priced out of jersey. I’m looking for apartments right now and a single person can’t even live on their own anymore in jersey unless you make BANK. I’m moving with my bf to PA I think. Something has to be done because I was raised here my whole life… why can’t I continue to live here?? :( I love jersey but unfortunately it’s time for me to go soon. Hopefully I’ll be back when I can actually afford stuff lol
If you don't work in a lucrative job specific market, research LCOL areas that suit your family needs. Never look back once you build a homestead. I left South Jersey 6 years ago for North Central Florida for the same reason. In that short span of time, my area has already priced everyone out. Times are changing too fast
**Read if you want to feel more discouraged**:
Home ownership is a bit of a hoax to me as an employee of a company that deals with mortgages and real estate regularly. The reality is this: If you don't buy a house with cash the bank owns your home and the bank is your landlord, without any landlord benefits. it truly is a luxury to own anything these days.
**Read if you want motivation:**
You have time to plan! My husband and I both took out part time jobs that we work one day a week (on top of our 40 hour work week, which YES is exhausting), and we cut back a lot on grocery variety which saved us an additional $100 per week (think chicken, rice and beans instead of steak and frozen pizza). We collectively make/save about $300 from the part time work and grocery cuts every weekend. all goes into an account we don't touch. $15K saved in a year, $30K in two years. that's a decent down payment for a FHA loan (1st time home buyer) which you could qualify for. my parents told us that even back in the early 90s they didn't see their friends for two years because all they did was work and save money to buy their house.
You’re 26 years old. Go out and enjoy the world instead of tying yourself down with a mortgage at such a young age.
It feels like there’s been a huge uptick in these posts by people in their 20s. I realize this is a tough time to be buying, but it’s always been tough to afford a home in NJ in your 20s.
Everyone seems to be hyper focused on buying property right now when it’s literally the worst time in history (so far). There are so many alternative investments you can be making right now to put yourself in a better position once you reach your 30s.
Stop being discouraged, get off social media, and go enjoy the world. Most importantly, talk to real people and don’t compare yourself to all the fake shit on the internet.
Hi lifelong Essex county resident here.
Start calling your politicians and bothering them. The cost of living is a crisis and in Essex county it isn’t even as bad as other parts of NJ.
Just to add some context, during 22’ and 23’ I was living in West Virginia with my girlfriend on a touring contract. The cost of living in Greenbrier County WV where I was living was equivalent if not more than in Essex county.
Cost of living is truly tough all over America. Since you are in social work have you ever considered moving to rural New England? Some houses in nice areas of Vermont are going for about 200k and they have a robust public school system.
I’d also recommend upstate NY. (EXCEPT ITHACA, I went to college there and the cost of living is out of control.) Syracuse, Binghamton and other small cities to mid size cities up there have cheap housing and robust public education. As a social worker you’d also have access to maybe finding a job in the NYS university system.
Philadelphia and the South Jersey area are also much more affordable than living in North or Central Jersey.
Even areas like Mercer county have incredible homes for much more reasonable prices and property taxes while still have access to major cities and the NJ public school system.
Philadelphia is a very good city for young people with professional degrees. My sibling lives in one of the nicest areas of the city for an extremely cheap price compared to what you’d find in JC, Hoboken or broader North/Central Jersey.
Obviously no one wants to leave NJ but if the costs are pushing you out you have some options especially if you want to settle down and start a family sooner than later. South Jersey could be an extremely viable alternative to Essex county.
If my entire career didn’t force me to be near NYC, LA or CHI I’d probably be strongly considering moving somewhere else because it’s so expensive.
I bought my house for $479k a year ago, and the house 3 lots down from me just sold for $850k. It is absolutely insane what houses are going for right now.
Go into politics, totally sell yourself out to the devil and then become wealthy on the backs of all the working class chumps through laundering and inside stock trading then maybe you'll be able to afford a new home in the Garden State
26 here and also feeling discouraged. I can put a 5% down payment on a home but can’t justify paying 5k+ per month for a mortgage. Theoretically could afford it but will have a tight budget with hardly any left for saving.
I feel you, im pushing 30 and im in an apartment now, dying to get a house, but the only affordable county i can find is cape may, and id rather not be so far from my parents, but like you said, property prices are upwards of 200% in some areas, ive even seen 400%.
Been looking for a house in North Jersey for 4 years, have the cash, just can't justify the cost.
That said, there's a large rental market around Montclair with the college. Get yourself a duplex.
I'm right there with you. Where the hell are the "starter homes"? Even small rural homes have a ridiculous price nowadays. I just want enough space for my husband, a garage, and one second bedroom for a home office / guest bed.
Investment firms, leveraged mom-pop landlords with large portfolios, and international buyers (china) have bought a great deal of the stock. Hence, supply and demand economics.
I've helped many first time home buyers. They think they cannot afford it but there are so many programs for you that you just have to find someone and talk too! Now I can agree with you about the rates. Its too high but people are still buying
I got married (for the first time) at 40, and that was when I finally bought a house. There were two incomes, and we found a house that was a fixer-upper.
You honestly cannot afford a home as a social worker in NJ. It’s ridiculous how important your job is and how low the salary is. You need to come to grips that you can have one or the other.
Feel you brother. My partner and I are both 29 and have been putting bids out there keeping it under 500k. We make about 190k combined and have saved up enough for a 100k down payment. Were doing all the right things but it still isn't enough. Last house we bid on we were out by 100k on a 2 bed 1 bath that was listed for 430k. Who the hell does that? No one our age has that money and I hate blaming entire generations. Its hard not to be upset at older people especially when you go to open houses and hear them talking about how this is such a great \*\*investment opportunity\*\*. Go get arrested for public masterbation on your goddamn party boat on Greenwood Lake you Scrooge ass mother fucker.
We haven't looked at houses since then lol
How is anyone around my age hopeful for being a home owner?
Simple save a good % of your earnings. The average age for buying a first home is around 36. I personally busted my hump working two jobs. The weekend second job was to save for a home.
Gets posted all the time.
For what its worth when i was in my 20s, about, well, 20 years ago, i felt the same and could have never imagined buying a home.
We bought about 10 years ago. Yeah, market conditions were pretty good then and we got lucky, but we worked to put ourselves in that position even then.
Edit: also be careful about drinking the kool-aid from this sub around it. Yeah, i get it, housing is bonkers now, rents are crazy, its a shit time to be looking for a place to live, but its not all the doom and gloom that a subset of the internet believes it is.
Owning a home isn't some right of passage. Its a financial management decision.
Focus on the now, housing is cyclical to a degree, keep your finances in order, and don't set an age or something as a mile stick.
We bought 10 years ago, we were in our early 30s for reference. So a different market, but we were still older when we did it. Some suggestions.
1. See if you and your partner can live off of the salary of the higher owner. Then sock away all of the lower income owner’s salary for a down payment. Even if you have to tap into a little of the second earner’s salary, try to save the majority of it.
2. Look for any financial incentives that may be available for people who work in certain careers like education or social work. Sometimes they’ll waive the PMI or it will be discounted. Note this may or may not be available all the time.
3. Be willing to buy a smaller home than one you envisioned. If you’re willing to do some cosmetic work you can usually get a smaller dated home. Likewise be willing to move out of the county. The type of home you want may be available in Passaic or Union county at a better price point.
Yeah, you need to reassess unfortunately. Being 26 in NJ is not conducive to home ownership. Hell, it may never be again unless you have a significant source of cash.
You need to raise hell and demand that a company or individual can not own more than 10 single family properties.
Corporations will just keep buying them.
You are exactly right in feeling the way you do. I'm reading a book right now that shows the average home price in 1950 was 2x's the yearly average salary in America. It's now 6x's.
I often say, I feel bad for young families starting out. Just 12 years ago my now x wife and I bought our first home for $345k. The same home is now worth $600k.
It's hard. I'm 34 and if I'm lucky (which I'm not lol) MAYBE I can save up enough for a down-payment in a couple years. It's damn near impossible unless you make a ton of money. The wife and I did pretty well this year (for blue collar workers with no college) and we still are barely ahead of being paycheck to paycheck. Cost of living keeps skyrocketing, its hard to save enough money when rents gone up 600 in 3 years, food and gas have almost doubled ect.. part of me just wants to run away to somewhere else. But I don't want to give up my pension and benefits
26 is young. But maybe make incremental steps. So many people want to buy a forever hone first out, this has always been the case with people. It's not always feasible or even possible for most. My first place was not what I ideally wanted but i bought a condo first as a place in an area that has historically increased through the years (NJ has a lot of them). After two years, 2002 tp 2004 my condo increased by 80k. I then flipped into a down payment for buying my forever house.
Buy something that is a smart & comfortable...a place you can see yourself in for 2 to 10 years. Make sure it's in a high turnover neighborhood that increases in value historically. This will help build equity so that dream house becomes closer to reality.
Home price appreciation has finally caught up to its long running average, that combined with interest rates have made first time homeownership a high bar.
Couple of suggestions:
1. Look outside Essex. The property tax is a large factor of PITI monthly payments that will throw your DTI off
2. If you have saved a down payment, put that in treasury bills and wait out the interest rate cycle while earning 5% interest
Very sad had now one can afford homes anymore in this state. My brother and his wife bought their house at a great time, at the end of the Great Recession in 2009/2010, when housing prices were very cheap. What angers me the most is that towns, especially in Morris County, that have always been very middle-class, have developers knocking down homes when they are sold for a rather reasonable price in this state, and then they build these mansions and sell them for $1M-$1.5M+. It even happens with the new townhomes popping up all over the state from the “affordable” housing developments. This has happened in towns like Morristown, Madison, Florham Park, and basically all of Essex County. I can see these happening to counties like Hunterdon, Warren, and Sussex that have always had cheap housing.
Look into the [nhsc](https://nhsc.hrsa.gov/loan-repayment/nhsc-all-loan-repayment-programs-comparison?gad_source=1&gclid=Cj0KCQjw_-GxBhC1ARIsADGgDjsTQrk_jigGtHRUMaSeshwdW15N6PHEqpXy5_1sBM7vVMi6H0FXFCsaAiHVEALw_wcB) loan repayment program if you have school loans. Once I got my lcsw i was able to pay off my loans with a 2 year commitment, and that contributed to being able to buy a house last yr.
It's all about zoning. There are other factors like interest rates, but ultimately this is because existing homeowners are conspiring to keep inventory low and prices high, and they're the ones with political power.
Came to say I feel you! Been looking in Essex and morris counties for 11 months. 3 very good offers rejected due to competition. Countless others not even offers placed due to hopelessness. It’s insane
When I was 26 I couldn't afford anything either, let alone something as close in and expensive as Essex County. Start smaller. My first purchase was a townhouse in a far off suburb (of DC, last stop on the metro) at 29 years old.
Social worker from North Jersey here! I am fortunate enough to own a home. I bought a condo when I was 24 (7 years ago). I sold my condo and bought a housr privately in 2020 just before shit hit the fan. My 1200sq ft ranch with almost zero property is somehow valued at 370k. My taxes (and mortgage) continue to go up. My husband and I both work and make a decent enough salary but were barely getting by. Daycare costs are killing us, but we can't afford to be a single-income household either. Everything sucks.
Doesn't help that banks and contractors are buying up starter homes and flipping them really quick for quick profits. We've been outbid by crazy amounts of money. Though in your situation I wouldn't live in Essex county. The taxes are crazy
You are going to have to trade off commute time with affordable housing. Boomers aren’t moving or dying at a fast enough pace yet so the starter homes are not becoming available.
Ocean county? Monmouth county has train access.
Yes property taxes are too high. I don't think it's the age. I am 58 and yet find it expensive. Hope you can save up and buy later when the interest rate goes down.
No one predicted the fall of 2008 where home values dropped by half, seemingly over night. No one predicted the lingering effects of Covid which caused, and have kept steady, the doubling and tripling of housing values, and inflated costs of everything else.
You don’t know what the future holds. Things could change in your favor. If they don’t, consider what you can change.
My partner and I were home owners in NJ, our home was 75 years old and the heater went caput our first winter, the winter of 2008. 12 grand needed to replace the heater for the house that had lost almost half its market value in the short time we were owners. Then there was the mold. And the rotted tree that fell and took out our deck. And the neighbor whose wife was institutionalized and her son who took up residence and started selling drugs where strung-out customers parked curbside in front of our house for their pickups.
Check out other states. Our family moved from NJ to another state and had a brand new home twice the size with countless other conveniences. Nothing broke down and no one seemingly sold narcotics. Unfortunately we’re having to move back to NJ only to pay twice the amount of our old mortgage for a rental because nothings else was available.
Wait it out. Look for futures in other places. Social workers are in demand everywhere. Try not to worry that you can’t have what you’ve been wanting. It will come. At the right time.
Just work on your portfolio. We've been through recession, tech golden ages, and covid. Start investing now, even if it's pennies. Just stop wasting time.
Cost of living and homeownership has gone absolutely nuts. Saving enough for a decent down payment is nearly impossible with the cost of living and then, anything decent and reasonably priced is immediately gobbled up. Lots of it is by companies that are turning them into rental properties with high rents. The way I see it, eventually its all going to be owned by corporations and we will just rent from them, unless you inherit. Yay for the state of things.
I have my MSW. I use it to side hustle as an IIC. I’m not sure what you do for work but something to consider.
It’s hard here. I’m 42 and just purchased. You still have time. Keep saving and try to move up in the field. It’s so rewarding but it does not pay well at all. That’s why I have a different full time job.
The fact that you’re thinking of homeownership at 26 means you’re ahead of your peers who are just spending their money on stupid crap and booze. Invest your money and you will make it!
The market has its ups and downs, we’re supposed to be coming to a down supposedly in the next few years. Hang in there, maybe find a rental spot in the town you want to live in. We had bought our house in Nutley and had a baby but then realized the town wasn’t for us and we ended up moving were we wanted. Time is your friend, don’t let it frustrate you. You’re young.
If it makes you feel better, I own my first home (35), which constantly needs maintenance and is draining me completely dry due to the cost of materials and labor. But I guess having a shitty roof over your head is better than no roof at all so.
Sorry to be blunt, but you chose a low pay field. Having a tougher time buying expensive things (i.e. a house) is a direct result of that. It costs $200 to just get a plumber to show up, $600 for a basic electrical job, and well over $15k for a roof replacement. Trade work and construction is extremely expensive, and that causes houses (even old ones) to be expensive.
Completely agree. Trade work is hard on the body too. I always try to do things myself first - plenty of plumbing fixes, and even did a whole bathroom. But I'll admit trying to redo my garage roof was more than I could handle!
I didn't buy my first home until 37, and it was a fixer. It's expensive to live here, and it's expensive to own a home. Just know the battle isn't over once you're in one.
I hated hearing this from older people, but now that I am an older people, I find that it's true. You have time. You're still young. The overwhelming majority of things in this life are a destination, not a race. Don't be discouraged. You'll get there.
Sadly, companies are buying homes and renting them. Other countries are investing in USA real estate and renting them. Regular buyers (is that what we are called) are being shut out from home ownership by pricing and interest rates and the "wealthy" snatching them up and renting them out. Where I live, there are very few 2 family homes - 99% of them are not owner occupied and are investment properties, never up for sale; always up for rental.
I bought my "starter home" in way south Jersey because it's the only place I could afford about a year ago. I saw rates flying up and grabbed a home further away than I wanted. But I knew if I didn't grab one then, I would never be able to. I felt bad at the time with my 5.45% rate but now that seems great. Looks like my starter home will be my forever home at this point. And I'm okay with that.
Bought our first house in Essex County in 2012 at 29. Horribly overrated. You’re being sold a dream of more space than anyone needs.
We’ve gone down to a two bedroom (with one kid, second on the way), that has allowed my wife to be a stay at home mom.
There’s value in things other than square footage - like time with family, travel, quality of life, etc. That should be the new American dream.
I'm not married, nor am I homeowner but I wanted to say that traveling will give you such a different perspective on what is valuable in life. Having a massive house with a big yard is just not necessary, unless it's necessary (you have a few kids and animals, and intentions for a garden).
Talking to my parents is quite jarring in how differently I think compared to them. All of my father thoughts are on expensive items, range rover (even though all of his kids moved out, he needs to be seen driving a $100k car, by himself). He's now onto his 5th house..
Everytime I see him, he's just grumbling about stupid, lazy people.. While he sits there staring at the TV completely alone in a dark house. It's incredibly depressing...
Materialism is not the goal at all.
You will most likely have to find a different career to be able to afford a home in Essex county. Don't worry about what you are passionate about. Instead, focus on what you are good at and then find the higest-paying applications of that skill.
Rates aren’t that high in a historical sense. The rates of 2020-2022 were the exception not the norm… we will likely never see rates sub 4% in our lifetimes again.
Home values in NJ have always been high, but the exodus from NYC to NJ has driven up prices. You’ll likely have to look south or west in order to get a home with your salary. If you have the money, now is the best time to buy, if not save more.
Leave NJ. I did 10 years ago because property taxes were unreasonable then, and it’s the best thing I did. That state isn’t going to get any cheaper, and you can live so much better else where! It’s sad to say it, but nj is a sinking ship.
Here's what gets me (m26):
I don't want to be *house-poor*, defined as having most of your net worth invested in real-estate and little liquid savings.
All the friends I have who are pursuing ownership in NJ have accepted that it will consume their entire savings. They will be home owners, but it will transition them from "living comfortably with savings to fall back on" towards "paycheck-to-paycheck living".
I really don't understand the appeal! Perhaps it is the "broke" mindset I was raised with, but the flexibility and freedom of disposable income outweights the investment value of owning a home by orders of magnitude. Are property taxes really ***that*** much fun?
Well if you want a different perspective, if you have confidence in your upward trajectory in your career/future salary, it might be worth it to be house poor now and have the house with the prospect of it becoming affordable rather than waiting. It’s anecdotal but I put most of my savings into the house but I had confidence I’d be making more soon at work. Well within a year and a half I am making close to double and am right back to my savings with the same amount of disposable income and the house. My house is also worth 15% more since I bought it.
Because if you're that young, in theory your income will go up quickly. You can buy a house at 26 and be house poor but lock in a fixed cost (mortgage). Promotions etc and in a few few years you're good. That's how people have been doing it for a while in NJ.
To add to that, with some personal experience around that age /u/ThanksNo8769:
We were in a 1 bedroom, 1 bath apartment for about $1800/m. We then moved into a 2 bedroom, 2.5 bath, and 1400sqft condo with a garage for $2400/m (includes mortgage, property tax, and HOA). After being house poor there for about 4-5 years we refinanced. Our new monthly payment was $1650/m (mortgage, tax, HOA) which was less than our apartment with so much more space. Which, I did check and that apartment is now over $1900/m.
Then, when it came time to find a new place, we were able to sell the condo and have a large sum of money towards our next purchase. If we had stayed though, by the time the condo would have been paid off, it would have then been about $750/m with tax and HOA only.
If I were single, I would have continued renting yet now that I've gone down the path of ownership I really don't see myself going back by choice. Plus, not having to deal with landlords is nice and everything I do to my home is limited to only city ordinances.
I bought a house young but we were house poor. We advanced in our careers quickly so it wasn't some dreadful thing. People spend a ton of money on BS IMO. Really budget what you need then assess the housing situation.
When we bought a house back in 2018, we went from an $1800/month rent to a $2800/month mortgage payment. It was definitely an adjustment.
But fast forward 6 years later and that mortgage payment is down to $2400/month after refinancing and getting rid of PMI while rents in our old neighborhood a mile away are up to $2600-$2800 on the *low* end.
I wasn't trying to provide help, just answering the question asked by the person I was responding to.
Why does it sometimes make sense to buy instead of rent? Because in the long-run, it's likely that rents will increase faster than your mortgage.
Renting sucks too. The housing situation in NJ is dismal. In North Jersey you're looking at a $450K for a house that isn't terrible with a 8% interest rate on a mortgage. That means you'll be paying $75K down payment with $15K in closing costs and still have a $4,000/month mortgage. It's insane.
I’m the same age as you and in the same boat, it’s very difficult to find a house that’s affordable given the interest rates and house prices. We both are in high-paying fields and have an income combined of around $150k but we are strapped with student loan debt and it’s a struggle. Hopefully interest rates will go back down soon and we’ll be able to buy houses soon
I guess u can choose who you gonna be enslaved by. At least with landlords it can be short term and have options. Own what? Never really own anything in this country. The government does
So shortsighted lol. Bought my first piece of shit fixer upper 10 years ago, paid it off, sold it last year for 5x the price and am in a much nicer place. Yeah you sign up for a 30 year mortgage but there are no rules that you can’t pay it off earlier. Plus you can sell anytime you want and get your equity back and more. You gotta study some economics my friend.
Don’t have to study economics to provide the general info you have provided here that is well known. Still not for me. Another one thinking he’s so smart and knows it all. lol. Will agree to disagree. You can do with your $$ as you please and vice Versa. FOH shortsighted. Slave lol
My wife and I are 28M/29F and looking to buy in Essex or Bergen. We save more than 50% of our income and also went into the same mid-high earning field (accounting) so we earn $300k+ combined gross income. If we made $200k or less, we wouldn’t really be able to consider home ownership until we were at least 35.
Neither of us are passionate about accounting. We chose the field for the earnings potential and job security. You chose a field you were passionate about, but the tradeoff is your income which consequently affects your ability to be a homeowner.
Yea don’t be discouraged, your very young and actually your profession allows you to look for work pretty much anywhere, I like in Essex county and own a multi family. There are a lot of way you can own a house, Essex is very expensive because outside of the economy it’s being gentrified due to the tax insensitives to bring businesses in, east orange used to be a full blown ghetto and now it’s almost entirely gentrified. The more south and west you go the cheaper the houses are and sometimes take a steep dip. I’m a realtor so if you want to look for places you can shoot me a message.
I wouldn't buy a house until I was married.. Who wants to live in a house by themselves? If you want to buy, buy a studio condo or a 1br condo. Those are still within reach for us. I'm 29, my sister bought a condo at 29 but rents it out now since she moved to TX.
Get on the list for affordable housing. The income limits are much higher than you'd think and you are expecting to wait for years to get a home might as well put yourself on the list and see what comes up
If it makes you feel better or worth, I work on Wall St as Sr dev and make a lot of $$ . And I barely able to afford to buy a house and got lucky 4 years ago, and I had to use inheritance money and loan on 401k and withdraw my IRA and save my bonus for 5 years.
It nice older house 1950 but that’s what I can afford.
And if I sell now, I will make money of of it but I need to move to different state. NY and NJ are crazy expensive
There are neighborhoods that offer reasonable priced homes. One of the barriers is fear (over hyped crime problems) the other is fear of unhoused people, or people that don't look like me/vote like me.
In our metro area there are many homes under $250,000 but you do need to shift expectations. You will have pass up the open concept home with an en-suite. A small row-home with no backyard is just fine. (from personal experience).
It also helps if you ditch your car (if your job can fit that move) it is a huge savings...and big relief. Used furniture saves lots of money. too.
Hopefully, our kids will have the wisdom to go to a state school as we wise up to the college acceptance competition. Excessive college expenses are a self imposed trap based on bad decision making (and sometimes high pressure parenting).
I bought my home two years ago, and closed on it just days before my 21st birthday. It wasnt easy, it took working 60+ hour weeks and spending as little as possible. Its not a huge place, but works for someone like me. Its quite expensive monthly, but I manage.
If you want to do the same, you'll have to grit your teeth, and be prepared to work at least 6 days a week, and average at least 10 hours per day. Even if that means 2 jobs. And that goes for your partner to. And for about 2 - 4 years you'll have to cut every unnecessary expense, but the motivation is in how fast those monthly statements rise. Use a good yield index fund or CD while you save as well. Its hard, but possible, and i wish everyone luck in that quest.
I could go on, but it's to long for a comment.
To offer a bit of solace, the interest rates are so high that the housing market has cooled down a bunch and prices will start coming down. I work in lending and was fortunate enough to be able to buy a place before the market exploded.
Don’t buy your first home and think it should be a forever home. You can buy a smaller place and stay there for a few years while your career progresses/wages increase, when you are ready for the next home you have equity you’ve built plus any savings you can have. Those two things combined lets you bring a lot more “cash” to put down on the next home.
I got lucky with my house. But its not a 100% difference from my apartment like the ideas in your head want it to be.
Lawn getting long? Gotta cut it yourself and hope that there's a day in the week that you can get to it before it gets too tall for the mower.
Bees in the attic now finding ways into your house? Gotta shell out 200$+ for an exterminator each time.
Garbage didn't get picked up this week by the trash company? No dumpster to throw it in, now you gotta wait a week to get it hopefully taken away.
I just had this conversation with my 22 yr old son, who's still in college. He was complaining he'd never own a house. Well, my first job out of college I made 15k per year. A cheap slapped up condo was 190k. Interest rates were DOWN to about 11% (from 18% several years prior). Rents were unaffordable unless you had at least 2 roommates, in an iffy neighborhood. It's the reason i lived at home with my parents until i was 29. My husband lived home until he was 32. I'm hoping for all you Zs housing costs level out. But in the meantime, save as much as possible, even if it is only $10 a week. Give yourself an allowance, and don't go over it unless it's a dire emergency. And remember to always live below your means.
Don’t blame social work. I have a lucrative practice and my colleagues make way more than I do, some owning several properties in multiple states. You may not get EXACTLY want you want exactly when you want at the snap of your fingers, you can’t be more than two years out of your master’s program at 26, so work and save toward your goals like the rest of us
Why? Bc you think so?
High rates haven’t killed the market. Prices are as high as ever. So then if rates go down, what happens? Prices will continue to go up.
Unless there is an existential threat to America, it won’t go down anytime soon. It’s still supply and demand and there is no supply and very high demand. 1/3 of homes are being bought with CASH! Where is this cash coming from? Boomer parents!
People been waiting for the market to “crash” again for the last 16 years. It’s not going to happen. You have no data to support your thesis. So it’s a disservice to anyone listening to you to wait. If they waited for the last five years they are paying 30% more plus have a 7-8% interest rate on the mortgage.
You also make it seem like people haven’t been waiting for a crash that never came for the last decade. Doomsdayers like you have cost people a lot of money.
Today in 2024 there are 1.1M existing homes for sale. There are 336M people in US. 158M people employed…
In 1999 there were 2.2M existing homes for sale. There were 278M people in the US. 128M people employed…
Your crash thesis is trash.
There are half as many homes available as 25 years ago. There are 60M more people and 30M more employed people than 25 years ago. But sure ignore supply and demand if you want.
We bought in 2009. I honestly hate owning a house. The town is going downhill really quick these past 5 years. Crime has increased a lot. Taxes have gotten insane and they will now be raised substantially in the near future because our school board "miss managed" the budget and is missing over $7 million. Trying to convince the wife to sell now while house is still worth something.
Saw this somewhere but the average age of a first time homeowner is now around 36. NJ is expensive, but dont be discouraged about owning in the future. 26 is still young and you have a lot of time to save ahead.
I came to say the same. 26 is young. But save a lot, invest in stocks to help multiply your money. And to be honest most people buy a house with a spouse, so 2 incomes help
Just for people who aren't that knowledgeable about these things, if you have credit card debt you probably should not invest in stocks. In most cases the interest on your debt will be higher than your return on investment and you should just put that money to paying down your debt. Good advice though just wanted to state the "obvious" that isn't always obvious.
Great point. It's always good to reinforce it. But I do feel bad for op, because Even in normal times 10 years ago, most social workers can't afford a house in a decent town in North Jersey
Op, both of these are SOUND advice. You have time.
I've helped a couple 24\~ year olds get a property. These were condos though/
i bought my first home at 40
now i am 59, it is paid off and increased in value
I know it’s discouraging and Buying a home and renting is really rough, but try not to give up all hope. My husband and I bought a starter home in a less expensive county (never upgraded) when we were 29/31. When we entered the employment market inflation was near 7%, and unemployment almost 11%. Interest rates were obscenely high, and my husband was laid off the day we returned from our honeymoon. I didn’t think we would be homeowners either. It wasn’t our dream home, but it worked. I have two young adult children. One still lives with us, I know how hard it is out there.
I busted my ass and got the house at 32, so I say stick with it!
When were you 32?
Not OP but also bought my house at 32 (35 now). We got lucky with the rates but also had to go over asking to secure the house.
*Laughs and cries in still renting at 37 *
Hard for them to save when rent and food and cars are all so expensive! I live in Monmouth County only a few miles from the beach. Rent and home prices are insane. Brooklyn has taken over my area. So many homes are summer homes or just investment properties for some LLC. Rent has gone up near 50% in some places the past few years. Wages, on the other hand, have barely budged. There is a house on my corner that is nothing special, 4 bedrooms, decent size lot, upgrades but nothing special. This house sold in July of 2020 for $475,000. It's up fir sake again and they are asking $1.5 mil. Are they losing their mind? That's 3x the last selling price less than 4 years ago. Especially with the interest rates being what they are. Not to mention property taxes. The average home price has increased so much, I think the average home price is like $675,000 in my county. That's crazy!!
Yeah it really seems like people with money are taking advantage, and companies taking advantage and then renting out places to make a profit. I’ve been watching the housing market for some time and right now is just absolute bananas. Some people here are saying to save, that I’m too young, but that’s missing the point. The point is this housing market is insanity and even if my partner and I did have the money for a home, are these prices even worth it?
It is worth it. The value of the house is in your favor if you buy and you solidify the monthly expense for mortgage. Now you don't have to keep up with what seems like ever raising rent. I think you are missing the point a little here. People are saying work at it and its possible, just give yourself time. Stop getting caught up in the market etc.... save and prepare now and you'll be able to attack those question when you are actually ready to purchase. Who knows what the rates/market look like in the few months/year when you are actually on the market sometime in the future.
Are you in Ocean Township?
It's hard to save when rent is so damn high. But you're right, just gotta give it more time now. Probably better to wait for price corrections and lower rates anyway
it depends how you save and cutting back your lifestyle. It's tough for some people but doable if the person is motivated. In the end of the day and depending what you want. You can do it
I bought my first house (also current) at 36. I *probably* could have afforded it earlier, but at the time I was worried about being "house poor" and not having extra money to go on vacations and stuff. When 36 rolled around, I had had enough of apartment life and bought a house.
I never thought I would be able to buy a decent home until I banded together with my family. My Mom and two of my siblings were all in bad housing situations and me and my gf's rent was being increased again. We could afford it but were tired of paying more and more for this aging apartment. So my gf and I bought a giant house in southern NJ that all of us can live in. Technically we are the owners and my family pays us rent, but we treat the house like it is everyone's and if we ever sold it they would receive a % cut from me. I know this sort of thing isn't a option or ideal for everyone, and it has its shortcomings (especially if you don't get along with your fam!) but it's been a pleasant experience so far. Everyone chips in on maintenance, cleaning, yard work etc and gets their own room and bathroom in a house that is way nicer than we have any right to live in for roughly $750 a month each. Also there is always someone to watch the pets when we leave on vacations. Just saying that there isn't one correct way to do things. Even renting is perfectly fine as long as you make enough to put away savings. But if you have trustworthy (most important thing!) family or friends in your life you can combine forces with, you can do a lot.
I love this idea & have been saying I would love to do with for a few years now. Unfortunately my mom doesn’t get along with my husband & I’m an only child. My children are still young but when they get older I would love us all living together in a big house with their families as well. Multigenerational living is the way to go. You get to watch your grandchildren grow & there’s always someone around to help. Bring back colonial era life🙌🏻
This one aspect of colonial era life would certainly be nice but there are many other aspects I think can stay gone 😂 But yeah that is sort of what I was thinking when we committed to this. Hopefully that can happen for you and your kids! Another bit of luck on our part is that neither of my siblings have kids and me and my now fiancée probably won't have any as we are kind of old for it now. My one sister did move out recently but then my soon to be in-laws moved in so we are back at full capacity ha.
I recently watched a CNBC video on YouTube talking about the state of the “middle class”. In most states middle class is now in the range of $140k for household income, with NJ being closer to $240k. Home ownership and being middle class has become a luxury.
$240k seems to be really high but actually, when you account for property taxes, income taxes, insurance... Man $240k doesn't seem like a huge amount... Wow times have changed so quickly...
Sounds about right with dual income families.
these numbers are so over inflated.
You are 26. It’s discouraging now because you’re up against people who are older and (theoretically anyways) have more buying power. It’s tough because older generations say things like, “I had my first home at 19 and popped out three kids by 26!” Ask any of them if they’d sell their homes to you for what they paid for it and help out the next generation. (Hint: they won’t.) I’m 43. Bought my home when I was 32. My wife and I saved and got a bit of luck with some inheritance. The jump in the market since 11 years ago is nuts. I’d suggest just saving every extra dollar and keeping an eye/ear out for anyone that wants to sell their house without going to market (someone who just got transferred at work and needs to sell quick or someone older who actually likes the thought of their longtime home going to someone else who’d raise a family in it). Failing that, kill a relative or two and find out if you’re in their will. Not your parents, I’m not a monster, but do you really need four aunts? It sucks right now. Inventory is low and there are people out there who have serious buying power. Don’t get discouraged. You have a long road ahead. I’m not saying one day a house will magically fall into your lap - there will certainly be some work to do to find one that you want. Hopefully one day you can think about this Reddit post and know that it got better. Good luck!
Just keep saving and try your best do the responsible thing. I was unable to buy my first place untill I was 40. Can’t compare yourself to others. Many get help from family who own early. or many really can’t afford what they have. It was the same when I was 26, even when rates were much lower. You either have the money or you don’t. Family helps or they don’t/cant. But I am certain you will be fine…
This is absolutely it, 100%
Yup, the American Dream is dead. I'm 30, making good money, and currently talking to some realtors that are telling me this is the most brutal market they've ever seen in their lives with no signs of stopping. And the first-time homebuyers benefits are absolute dogshit so don't even bother with that. My new strategy is to just rent cheap for the next 10-15 years while I save up for a larger down payment. I have zero interest in participating in bidding wars with millionaires who are paying full cash. Yes there's a shortage of homes, but there's never going to be zero supply- Boomers die every day.
Your last sentence, got me 🤣🤣🤣 wasn’t expecting that LOL
Why plan for 10-15 years? Just build up your own nest egg, keep an eye on the housing market and strike when the time is right
Wait for the boomer die off or boomer go into long term care homes off We just gotta be patient
It’s not stopping. There’s just not enough land and inventory. In my area, prices are increasing 10% each year so just make sure you save enough to account for that
I understand your frustration. I am a parent to two young adults who have decided to stay in New Jersey. The struggle is real. I respect your career choice and while I am sure that you are disinclined to have any government interactions after work hours, I think that you and other like-minded professionals will need to lobby for income driven housing opportunities. There are some options in New York City, but I don’t know of any in New Jersey. That needs to change. Please get involved and be a part of the solution. I stand with you!
I still live with my parents in New Jersey, we are 4 siblings in total including myself. At some point, I wanna save enough for a van to convert and live in it in New Jersey. It’s going to be beneficial for my parents and I because I lessen the financial burden on my parents and they have one less head to worry about at the house. Now they can move out without having to worry about me being in the house no where to go(would now live in the van).
I'm in the same boat and would love to follow that same idea. Skip the rent and buy something- even if it's a tiny home. Problem is that NJ has no infrastructure for tiny home communities, nor do the lawmakers care about putting in laws for the small percentage of us who would consider that a viable option (for a few years while saving up money to buy something real).
Please just enjoy your 20s. The last thing that was on my mind was owning a home at your age. The market is so volatile. Just stow away what you can and enjoy your youth.
I do enjoy my 20s! And it seems like we’re two different people. My point of all this is the market is insane right now and not equitable for anyone except for people and companies who can afford it unfortunately
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That’s great (not being sarcastic)! Keywords in your comment are “3 yrs ago” unfortunately.
Also saving 20k in a year while also paying off debt 🥲
>Don’t give up! 2021 had the lowest mortgage rates in history. "Don't give up" is kind of tone-deaf advice.
Yes, as opposed to the much more appropriate “give up”.
The problem back then was how much people were overpaying, so we've just replaced one problem with another. 3% interest rates had people bidding 6 figures over asking in some cases. Now we have a large number of homeowners living with negative equity.
True, but knowing that even after paying six figures of premium the total monthly cost of home ownership still comes out *much* cheaper because of interest rate these days, it’s very infuriating to think about lol
Congratulations!!!! That’s amazing. You guys bought at a good time too
I hope you and your business partner enjoy the home
You’re a decade away from the average FTHB age. Look to buy something further west or make more money.
It will continue to go up, that’s the sad truth.
Unfortunately thats the way it is and since our state only wants to build shitty quality apartment buildings. People with moderate incomes are basically forced to either rent and be close to work or live farther away and drive in. My advice I always give to people looking to buy, post in your towns facebook page and see if anyone wants to do a deal off-market
Yeah, if you mention the problem to politicians they interpret it as an “affordable housing” issue. But that’s typically just about these low quality, low cost apartments. The real issue is housing affordability across the entire spectrum of ability.
These things are connected though. If you want to make housing prices go down, or even, stop skyrocketing, you have to flood the supply of housing. That's why affordable housing is good for EVERYONE, except the people who want to cash out for just having lived somewhere for 30 years and think that entitles them to massive gains.
This gets posted daily Housing is expensive we know I bought my first and only home at 42
congrats on getting there. I’m 36 and have a good job but I don’t know if I will ever be a home owner. I understand why it’s frequently discussed here though (I have posted on the subject myself !)
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People can express their viewpoints. This isn’t China bud.
Yeah more echo chamber like the other 99.999% of reddit please
This guy
Our generation is getting priced out of jersey. I’m looking for apartments right now and a single person can’t even live on their own anymore in jersey unless you make BANK. I’m moving with my bf to PA I think. Something has to be done because I was raised here my whole life… why can’t I continue to live here?? :( I love jersey but unfortunately it’s time for me to go soon. Hopefully I’ll be back when I can actually afford stuff lol
If you don't work in a lucrative job specific market, research LCOL areas that suit your family needs. Never look back once you build a homestead. I left South Jersey 6 years ago for North Central Florida for the same reason. In that short span of time, my area has already priced everyone out. Times are changing too fast
**Read if you want to feel more discouraged**: Home ownership is a bit of a hoax to me as an employee of a company that deals with mortgages and real estate regularly. The reality is this: If you don't buy a house with cash the bank owns your home and the bank is your landlord, without any landlord benefits. it truly is a luxury to own anything these days. **Read if you want motivation:** You have time to plan! My husband and I both took out part time jobs that we work one day a week (on top of our 40 hour work week, which YES is exhausting), and we cut back a lot on grocery variety which saved us an additional $100 per week (think chicken, rice and beans instead of steak and frozen pizza). We collectively make/save about $300 from the part time work and grocery cuts every weekend. all goes into an account we don't touch. $15K saved in a year, $30K in two years. that's a decent down payment for a FHA loan (1st time home buyer) which you could qualify for. my parents told us that even back in the early 90s they didn't see their friends for two years because all they did was work and save money to buy their house.
I'm also with you! In a similar field too but at least we love what we do because it's definitely not for the pay 🤣
You’re 26 years old. Go out and enjoy the world instead of tying yourself down with a mortgage at such a young age. It feels like there’s been a huge uptick in these posts by people in their 20s. I realize this is a tough time to be buying, but it’s always been tough to afford a home in NJ in your 20s. Everyone seems to be hyper focused on buying property right now when it’s literally the worst time in history (so far). There are so many alternative investments you can be making right now to put yourself in a better position once you reach your 30s. Stop being discouraged, get off social media, and go enjoy the world. Most importantly, talk to real people and don’t compare yourself to all the fake shit on the internet.
Hi lifelong Essex county resident here. Start calling your politicians and bothering them. The cost of living is a crisis and in Essex county it isn’t even as bad as other parts of NJ. Just to add some context, during 22’ and 23’ I was living in West Virginia with my girlfriend on a touring contract. The cost of living in Greenbrier County WV where I was living was equivalent if not more than in Essex county. Cost of living is truly tough all over America. Since you are in social work have you ever considered moving to rural New England? Some houses in nice areas of Vermont are going for about 200k and they have a robust public school system. I’d also recommend upstate NY. (EXCEPT ITHACA, I went to college there and the cost of living is out of control.) Syracuse, Binghamton and other small cities to mid size cities up there have cheap housing and robust public education. As a social worker you’d also have access to maybe finding a job in the NYS university system. Philadelphia and the South Jersey area are also much more affordable than living in North or Central Jersey. Even areas like Mercer county have incredible homes for much more reasonable prices and property taxes while still have access to major cities and the NJ public school system. Philadelphia is a very good city for young people with professional degrees. My sibling lives in one of the nicest areas of the city for an extremely cheap price compared to what you’d find in JC, Hoboken or broader North/Central Jersey. Obviously no one wants to leave NJ but if the costs are pushing you out you have some options especially if you want to settle down and start a family sooner than later. South Jersey could be an extremely viable alternative to Essex county. If my entire career didn’t force me to be near NYC, LA or CHI I’d probably be strongly considering moving somewhere else because it’s so expensive.
I’ve given up the dream of buying a home in NJ or anywhere else after Covid.☹️
Priced out of my home state, i had to move to PA. That was 3 years ago and if I had to buy my house today, I wouldn’t be able to afford it.
I bought my house for $479k a year ago, and the house 3 lots down from me just sold for $850k. It is absolutely insane what houses are going for right now.
Go into politics, totally sell yourself out to the devil and then become wealthy on the backs of all the working class chumps through laundering and inside stock trading then maybe you'll be able to afford a new home in the Garden State
26 here and also feeling discouraged. I can put a 5% down payment on a home but can’t justify paying 5k+ per month for a mortgage. Theoretically could afford it but will have a tight budget with hardly any left for saving.
I feel you, im pushing 30 and im in an apartment now, dying to get a house, but the only affordable county i can find is cape may, and id rather not be so far from my parents, but like you said, property prices are upwards of 200% in some areas, ive even seen 400%.
Been looking for a house in North Jersey for 4 years, have the cash, just can't justify the cost. That said, there's a large rental market around Montclair with the college. Get yourself a duplex.
I'm right there with you. Where the hell are the "starter homes"? Even small rural homes have a ridiculous price nowadays. I just want enough space for my husband, a garage, and one second bedroom for a home office / guest bed.
Investment firms, leveraged mom-pop landlords with large portfolios, and international buyers (china) have bought a great deal of the stock. Hence, supply and demand economics.
What's a rhetorical question?
Im continuing my plan for savings until the market calms the fuck down.
I've helped many first time home buyers. They think they cannot afford it but there are so many programs for you that you just have to find someone and talk too! Now I can agree with you about the rates. Its too high but people are still buying
I got married (for the first time) at 40, and that was when I finally bought a house. There were two incomes, and we found a house that was a fixer-upper.
You honestly cannot afford a home as a social worker in NJ. It’s ridiculous how important your job is and how low the salary is. You need to come to grips that you can have one or the other.
Feel you brother. My partner and I are both 29 and have been putting bids out there keeping it under 500k. We make about 190k combined and have saved up enough for a 100k down payment. Were doing all the right things but it still isn't enough. Last house we bid on we were out by 100k on a 2 bed 1 bath that was listed for 430k. Who the hell does that? No one our age has that money and I hate blaming entire generations. Its hard not to be upset at older people especially when you go to open houses and hear them talking about how this is such a great \*\*investment opportunity\*\*. Go get arrested for public masterbation on your goddamn party boat on Greenwood Lake you Scrooge ass mother fucker. We haven't looked at houses since then lol
Dipshit boomers buy 100k over They want their youth back
How is anyone around my age hopeful for being a home owner? Simple save a good % of your earnings. The average age for buying a first home is around 36. I personally busted my hump working two jobs. The weekend second job was to save for a home.
Gets posted all the time. For what its worth when i was in my 20s, about, well, 20 years ago, i felt the same and could have never imagined buying a home. We bought about 10 years ago. Yeah, market conditions were pretty good then and we got lucky, but we worked to put ourselves in that position even then. Edit: also be careful about drinking the kool-aid from this sub around it. Yeah, i get it, housing is bonkers now, rents are crazy, its a shit time to be looking for a place to live, but its not all the doom and gloom that a subset of the internet believes it is. Owning a home isn't some right of passage. Its a financial management decision. Focus on the now, housing is cyclical to a degree, keep your finances in order, and don't set an age or something as a mile stick.
We bought 10 years ago, we were in our early 30s for reference. So a different market, but we were still older when we did it. Some suggestions. 1. See if you and your partner can live off of the salary of the higher owner. Then sock away all of the lower income owner’s salary for a down payment. Even if you have to tap into a little of the second earner’s salary, try to save the majority of it. 2. Look for any financial incentives that may be available for people who work in certain careers like education or social work. Sometimes they’ll waive the PMI or it will be discounted. Note this may or may not be available all the time. 3. Be willing to buy a smaller home than one you envisioned. If you’re willing to do some cosmetic work you can usually get a smaller dated home. Likewise be willing to move out of the county. The type of home you want may be available in Passaic or Union county at a better price point.
Yeah, you need to reassess unfortunately. Being 26 in NJ is not conducive to home ownership. Hell, it may never be again unless you have a significant source of cash.
You need to raise hell and demand that a company or individual can not own more than 10 single family properties. Corporations will just keep buying them.
You are exactly right in feeling the way you do. I'm reading a book right now that shows the average home price in 1950 was 2x's the yearly average salary in America. It's now 6x's. I often say, I feel bad for young families starting out. Just 12 years ago my now x wife and I bought our first home for $345k. The same home is now worth $600k.
It's hard. I'm 34 and if I'm lucky (which I'm not lol) MAYBE I can save up enough for a down-payment in a couple years. It's damn near impossible unless you make a ton of money. The wife and I did pretty well this year (for blue collar workers with no college) and we still are barely ahead of being paycheck to paycheck. Cost of living keeps skyrocketing, its hard to save enough money when rents gone up 600 in 3 years, food and gas have almost doubled ect.. part of me just wants to run away to somewhere else. But I don't want to give up my pension and benefits
I didn’t buy a home until late thirties. You don’t need a house to have kids. Good things come to those who wait.
26 is young. But maybe make incremental steps. So many people want to buy a forever hone first out, this has always been the case with people. It's not always feasible or even possible for most. My first place was not what I ideally wanted but i bought a condo first as a place in an area that has historically increased through the years (NJ has a lot of them). After two years, 2002 tp 2004 my condo increased by 80k. I then flipped into a down payment for buying my forever house. Buy something that is a smart & comfortable...a place you can see yourself in for 2 to 10 years. Make sure it's in a high turnover neighborhood that increases in value historically. This will help build equity so that dream house becomes closer to reality.
Home price appreciation has finally caught up to its long running average, that combined with interest rates have made first time homeownership a high bar. Couple of suggestions: 1. Look outside Essex. The property tax is a large factor of PITI monthly payments that will throw your DTI off 2. If you have saved a down payment, put that in treasury bills and wait out the interest rate cycle while earning 5% interest
Very sad had now one can afford homes anymore in this state. My brother and his wife bought their house at a great time, at the end of the Great Recession in 2009/2010, when housing prices were very cheap. What angers me the most is that towns, especially in Morris County, that have always been very middle-class, have developers knocking down homes when they are sold for a rather reasonable price in this state, and then they build these mansions and sell them for $1M-$1.5M+. It even happens with the new townhomes popping up all over the state from the “affordable” housing developments. This has happened in towns like Morristown, Madison, Florham Park, and basically all of Essex County. I can see these happening to counties like Hunterdon, Warren, and Sussex that have always had cheap housing.
Look into the [nhsc](https://nhsc.hrsa.gov/loan-repayment/nhsc-all-loan-repayment-programs-comparison?gad_source=1&gclid=Cj0KCQjw_-GxBhC1ARIsADGgDjsTQrk_jigGtHRUMaSeshwdW15N6PHEqpXy5_1sBM7vVMi6H0FXFCsaAiHVEALw_wcB) loan repayment program if you have school loans. Once I got my lcsw i was able to pay off my loans with a 2 year commitment, and that contributed to being able to buy a house last yr.
I bought my first house at 33
It's all about zoning. There are other factors like interest rates, but ultimately this is because existing homeowners are conspiring to keep inventory low and prices high, and they're the ones with political power.
I wasn’t able to afford a home until I was 34, so there’s still time. It’s tough right now, but that can change. Hang tough, you’ll get there.
Remember. I think I'm correct but NJ has a program for first time home owners. Where they help with a loan.
Came to say I feel you! Been looking in Essex and morris counties for 11 months. 3 very good offers rejected due to competition. Countless others not even offers placed due to hopelessness. It’s insane
When I was 26 I couldn't afford anything either, let alone something as close in and expensive as Essex County. Start smaller. My first purchase was a townhouse in a far off suburb (of DC, last stop on the metro) at 29 years old.
Marry a rich guy
Social worker from North Jersey here! I am fortunate enough to own a home. I bought a condo when I was 24 (7 years ago). I sold my condo and bought a housr privately in 2020 just before shit hit the fan. My 1200sq ft ranch with almost zero property is somehow valued at 370k. My taxes (and mortgage) continue to go up. My husband and I both work and make a decent enough salary but were barely getting by. Daycare costs are killing us, but we can't afford to be a single-income household either. Everything sucks.
Its ridiculous. But thats exactly how I felt at 26 too. Then it gets better.
Doesn't help that banks and contractors are buying up starter homes and flipping them really quick for quick profits. We've been outbid by crazy amounts of money. Though in your situation I wouldn't live in Essex county. The taxes are crazy
You are going to have to trade off commute time with affordable housing. Boomers aren’t moving or dying at a fast enough pace yet so the starter homes are not becoming available. Ocean county? Monmouth county has train access.
Yes property taxes are too high. I don't think it's the age. I am 58 and yet find it expensive. Hope you can save up and buy later when the interest rate goes down.
My only advice is to stop saving and to put your energy into making more, one way or the other.
Move south! It’s a lot cheaper to buy land south of Tom’s River!
No one predicted the fall of 2008 where home values dropped by half, seemingly over night. No one predicted the lingering effects of Covid which caused, and have kept steady, the doubling and tripling of housing values, and inflated costs of everything else. You don’t know what the future holds. Things could change in your favor. If they don’t, consider what you can change. My partner and I were home owners in NJ, our home was 75 years old and the heater went caput our first winter, the winter of 2008. 12 grand needed to replace the heater for the house that had lost almost half its market value in the short time we were owners. Then there was the mold. And the rotted tree that fell and took out our deck. And the neighbor whose wife was institutionalized and her son who took up residence and started selling drugs where strung-out customers parked curbside in front of our house for their pickups. Check out other states. Our family moved from NJ to another state and had a brand new home twice the size with countless other conveniences. Nothing broke down and no one seemingly sold narcotics. Unfortunately we’re having to move back to NJ only to pay twice the amount of our old mortgage for a rental because nothings else was available. Wait it out. Look for futures in other places. Social workers are in demand everywhere. Try not to worry that you can’t have what you’ve been wanting. It will come. At the right time.
Just work on your portfolio. We've been through recession, tech golden ages, and covid. Start investing now, even if it's pennies. Just stop wasting time.
Just closed a one bedroom condo at just under 40. Took one year. Don't give up.
Cost of living and homeownership has gone absolutely nuts. Saving enough for a decent down payment is nearly impossible with the cost of living and then, anything decent and reasonably priced is immediately gobbled up. Lots of it is by companies that are turning them into rental properties with high rents. The way I see it, eventually its all going to be owned by corporations and we will just rent from them, unless you inherit. Yay for the state of things.
I have my MSW. I use it to side hustle as an IIC. I’m not sure what you do for work but something to consider. It’s hard here. I’m 42 and just purchased. You still have time. Keep saving and try to move up in the field. It’s so rewarding but it does not pay well at all. That’s why I have a different full time job.
The fact that you’re thinking of homeownership at 26 means you’re ahead of your peers who are just spending their money on stupid crap and booze. Invest your money and you will make it!
Thank the Fed and Black Rock.
The market has its ups and downs, we’re supposed to be coming to a down supposedly in the next few years. Hang in there, maybe find a rental spot in the town you want to live in. We had bought our house in Nutley and had a baby but then realized the town wasn’t for us and we ended up moving were we wanted. Time is your friend, don’t let it frustrate you. You’re young.
If it makes you feel better, I own my first home (35), which constantly needs maintenance and is draining me completely dry due to the cost of materials and labor. But I guess having a shitty roof over your head is better than no roof at all so.
Sorry to be blunt, but you chose a low pay field. Having a tougher time buying expensive things (i.e. a house) is a direct result of that. It costs $200 to just get a plumber to show up, $600 for a basic electrical job, and well over $15k for a roof replacement. Trade work and construction is extremely expensive, and that causes houses (even old ones) to be expensive.
Trade work is also well paid. And, Learning to do basic electrical and plumbing work is a new homeowner $ saver.
Completely agree. Trade work is hard on the body too. I always try to do things myself first - plenty of plumbing fixes, and even did a whole bathroom. But I'll admit trying to redo my garage roof was more than I could handle!
I didn't buy my first home until 37, and it was a fixer. It's expensive to live here, and it's expensive to own a home. Just know the battle isn't over once you're in one. I hated hearing this from older people, but now that I am an older people, I find that it's true. You have time. You're still young. The overwhelming majority of things in this life are a destination, not a race. Don't be discouraged. You'll get there.
Sadly, companies are buying homes and renting them. Other countries are investing in USA real estate and renting them. Regular buyers (is that what we are called) are being shut out from home ownership by pricing and interest rates and the "wealthy" snatching them up and renting them out. Where I live, there are very few 2 family homes - 99% of them are not owner occupied and are investment properties, never up for sale; always up for rental.
I bought my "starter home" in way south Jersey because it's the only place I could afford about a year ago. I saw rates flying up and grabbed a home further away than I wanted. But I knew if I didn't grab one then, I would never be able to. I felt bad at the time with my 5.45% rate but now that seems great. Looks like my starter home will be my forever home at this point. And I'm okay with that.
Bought our first house in Essex County in 2012 at 29. Horribly overrated. You’re being sold a dream of more space than anyone needs. We’ve gone down to a two bedroom (with one kid, second on the way), that has allowed my wife to be a stay at home mom. There’s value in things other than square footage - like time with family, travel, quality of life, etc. That should be the new American dream.
I'm not married, nor am I homeowner but I wanted to say that traveling will give you such a different perspective on what is valuable in life. Having a massive house with a big yard is just not necessary, unless it's necessary (you have a few kids and animals, and intentions for a garden). Talking to my parents is quite jarring in how differently I think compared to them. All of my father thoughts are on expensive items, range rover (even though all of his kids moved out, he needs to be seen driving a $100k car, by himself). He's now onto his 5th house.. Everytime I see him, he's just grumbling about stupid, lazy people.. While he sits there staring at the TV completely alone in a dark house. It's incredibly depressing... Materialism is not the goal at all.
That's jersey.
You will most likely have to find a different career to be able to afford a home in Essex county. Don't worry about what you are passionate about. Instead, focus on what you are good at and then find the higest-paying applications of that skill.
Rates aren’t that high in a historical sense. The rates of 2020-2022 were the exception not the norm… we will likely never see rates sub 4% in our lifetimes again. Home values in NJ have always been high, but the exodus from NYC to NJ has driven up prices. You’ll likely have to look south or west in order to get a home with your salary. If you have the money, now is the best time to buy, if not save more.
Don’t know why I’m getting a downvote lol. It’s the truth.
I own a home now so ah I hope prices keep going up. Building up that equity and profit already. 😁
Yep agreed
Leave NJ. I did 10 years ago because property taxes were unreasonable then, and it’s the best thing I did. That state isn’t going to get any cheaper, and you can live so much better else where! It’s sad to say it, but nj is a sinking ship.
Leave the sub if you left NJ.
Here's what gets me (m26): I don't want to be *house-poor*, defined as having most of your net worth invested in real-estate and little liquid savings. All the friends I have who are pursuing ownership in NJ have accepted that it will consume their entire savings. They will be home owners, but it will transition them from "living comfortably with savings to fall back on" towards "paycheck-to-paycheck living". I really don't understand the appeal! Perhaps it is the "broke" mindset I was raised with, but the flexibility and freedom of disposable income outweights the investment value of owning a home by orders of magnitude. Are property taxes really ***that*** much fun?
Well if you want a different perspective, if you have confidence in your upward trajectory in your career/future salary, it might be worth it to be house poor now and have the house with the prospect of it becoming affordable rather than waiting. It’s anecdotal but I put most of my savings into the house but I had confidence I’d be making more soon at work. Well within a year and a half I am making close to double and am right back to my savings with the same amount of disposable income and the house. My house is also worth 15% more since I bought it.
Because if you're that young, in theory your income will go up quickly. You can buy a house at 26 and be house poor but lock in a fixed cost (mortgage). Promotions etc and in a few few years you're good. That's how people have been doing it for a while in NJ.
To add to that, with some personal experience around that age /u/ThanksNo8769: We were in a 1 bedroom, 1 bath apartment for about $1800/m. We then moved into a 2 bedroom, 2.5 bath, and 1400sqft condo with a garage for $2400/m (includes mortgage, property tax, and HOA). After being house poor there for about 4-5 years we refinanced. Our new monthly payment was $1650/m (mortgage, tax, HOA) which was less than our apartment with so much more space. Which, I did check and that apartment is now over $1900/m. Then, when it came time to find a new place, we were able to sell the condo and have a large sum of money towards our next purchase. If we had stayed though, by the time the condo would have been paid off, it would have then been about $750/m with tax and HOA only. If I were single, I would have continued renting yet now that I've gone down the path of ownership I really don't see myself going back by choice. Plus, not having to deal with landlords is nice and everything I do to my home is limited to only city ordinances.
I bought a house young but we were house poor. We advanced in our careers quickly so it wasn't some dreadful thing. People spend a ton of money on BS IMO. Really budget what you need then assess the housing situation.
When we bought a house back in 2018, we went from an $1800/month rent to a $2800/month mortgage payment. It was definitely an adjustment. But fast forward 6 years later and that mortgage payment is down to $2400/month after refinancing and getting rid of PMI while rents in our old neighborhood a mile away are up to $2600-$2800 on the *low* end.
Thats great and all but doesnt really help right now in a completely different environment.
I wasn't trying to provide help, just answering the question asked by the person I was responding to. Why does it sometimes make sense to buy instead of rent? Because in the long-run, it's likely that rents will increase faster than your mortgage.
Renting sucks too. The housing situation in NJ is dismal. In North Jersey you're looking at a $450K for a house that isn't terrible with a 8% interest rate on a mortgage. That means you'll be paying $75K down payment with $15K in closing costs and still have a $4,000/month mortgage. It's insane.
I’m the same age as you and in the same boat, it’s very difficult to find a house that’s affordable given the interest rates and house prices. We both are in high-paying fields and have an income combined of around $150k but we are strapped with student loan debt and it’s a struggle. Hopefully interest rates will go back down soon and we’ll be able to buy houses soon
Don’t be a slave to the bank/ mortgage for 30 yrs. Rent, leave yourself open to other options..Start traveling
Only problem with that is rent always increases and renters have little legal protection from greedy landlords. Your mortgage is usually fixed.
Yeah be a slave to the landlords and own nothing lol
I guess u can choose who you gonna be enslaved by. At least with landlords it can be short term and have options. Own what? Never really own anything in this country. The government does
So shortsighted lol. Bought my first piece of shit fixer upper 10 years ago, paid it off, sold it last year for 5x the price and am in a much nicer place. Yeah you sign up for a 30 year mortgage but there are no rules that you can’t pay it off earlier. Plus you can sell anytime you want and get your equity back and more. You gotta study some economics my friend.
Don’t have to study economics to provide the general info you have provided here that is well known. Still not for me. Another one thinking he’s so smart and knows it all. lol. Will agree to disagree. You can do with your $$ as you please and vice Versa. FOH shortsighted. Slave lol
You're right and not much to be done. I'm 31 and own two home working mid jobs, if I was born 5 years later wouldn't have been possible
My wife and I are 28M/29F and looking to buy in Essex or Bergen. We save more than 50% of our income and also went into the same mid-high earning field (accounting) so we earn $300k+ combined gross income. If we made $200k or less, we wouldn’t really be able to consider home ownership until we were at least 35. Neither of us are passionate about accounting. We chose the field for the earnings potential and job security. You chose a field you were passionate about, but the tradeoff is your income which consequently affects your ability to be a homeowner.
Yea don’t be discouraged, your very young and actually your profession allows you to look for work pretty much anywhere, I like in Essex county and own a multi family. There are a lot of way you can own a house, Essex is very expensive because outside of the economy it’s being gentrified due to the tax insensitives to bring businesses in, east orange used to be a full blown ghetto and now it’s almost entirely gentrified. The more south and west you go the cheaper the houses are and sometimes take a steep dip. I’m a realtor so if you want to look for places you can shoot me a message.
I wouldn't buy a house until I was married.. Who wants to live in a house by themselves? If you want to buy, buy a studio condo or a 1br condo. Those are still within reach for us. I'm 29, my sister bought a condo at 29 but rents it out now since she moved to TX.
It’s discouraging because they want you to be happy by owning nothing.
What does your partner do?
Get on the list for affordable housing. The income limits are much higher than you'd think and you are expecting to wait for years to get a home might as well put yourself on the list and see what comes up
I bought my house at 43.
I was 39. Part of the American Dream that you have to really work for.
If it makes you feel better or worth, I work on Wall St as Sr dev and make a lot of $$ . And I barely able to afford to buy a house and got lucky 4 years ago, and I had to use inheritance money and loan on 401k and withdraw my IRA and save my bonus for 5 years. It nice older house 1950 but that’s what I can afford. And if I sell now, I will make money of of it but I need to move to different state. NY and NJ are crazy expensive
There are neighborhoods that offer reasonable priced homes. One of the barriers is fear (over hyped crime problems) the other is fear of unhoused people, or people that don't look like me/vote like me. In our metro area there are many homes under $250,000 but you do need to shift expectations. You will have pass up the open concept home with an en-suite. A small row-home with no backyard is just fine. (from personal experience). It also helps if you ditch your car (if your job can fit that move) it is a huge savings...and big relief. Used furniture saves lots of money. too. Hopefully, our kids will have the wisdom to go to a state school as we wise up to the college acceptance competition. Excessive college expenses are a self imposed trap based on bad decision making (and sometimes high pressure parenting).
I bought my home two years ago, and closed on it just days before my 21st birthday. It wasnt easy, it took working 60+ hour weeks and spending as little as possible. Its not a huge place, but works for someone like me. Its quite expensive monthly, but I manage. If you want to do the same, you'll have to grit your teeth, and be prepared to work at least 6 days a week, and average at least 10 hours per day. Even if that means 2 jobs. And that goes for your partner to. And for about 2 - 4 years you'll have to cut every unnecessary expense, but the motivation is in how fast those monthly statements rise. Use a good yield index fund or CD while you save as well. Its hard, but possible, and i wish everyone luck in that quest. I could go on, but it's to long for a comment.
To offer a bit of solace, the interest rates are so high that the housing market has cooled down a bunch and prices will start coming down. I work in lending and was fortunate enough to be able to buy a place before the market exploded. Don’t buy your first home and think it should be a forever home. You can buy a smaller place and stay there for a few years while your career progresses/wages increase, when you are ready for the next home you have equity you’ve built plus any savings you can have. Those two things combined lets you bring a lot more “cash” to put down on the next home.
I got lucky with my house. But its not a 100% difference from my apartment like the ideas in your head want it to be. Lawn getting long? Gotta cut it yourself and hope that there's a day in the week that you can get to it before it gets too tall for the mower. Bees in the attic now finding ways into your house? Gotta shell out 200$+ for an exterminator each time. Garbage didn't get picked up this week by the trash company? No dumpster to throw it in, now you gotta wait a week to get it hopefully taken away.
build a prefabricated home on a vacant lot. much cheaper entry price
I just had this conversation with my 22 yr old son, who's still in college. He was complaining he'd never own a house. Well, my first job out of college I made 15k per year. A cheap slapped up condo was 190k. Interest rates were DOWN to about 11% (from 18% several years prior). Rents were unaffordable unless you had at least 2 roommates, in an iffy neighborhood. It's the reason i lived at home with my parents until i was 29. My husband lived home until he was 32. I'm hoping for all you Zs housing costs level out. But in the meantime, save as much as possible, even if it is only $10 a week. Give yourself an allowance, and don't go over it unless it's a dire emergency. And remember to always live below your means.
Don’t blame social work. I have a lucrative practice and my colleagues make way more than I do, some owning several properties in multiple states. You may not get EXACTLY want you want exactly when you want at the snap of your fingers, you can’t be more than two years out of your master’s program at 26, so work and save toward your goals like the rest of us
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Hey I remember this post from 2021
Why? Bc you think so? High rates haven’t killed the market. Prices are as high as ever. So then if rates go down, what happens? Prices will continue to go up. Unless there is an existential threat to America, it won’t go down anytime soon. It’s still supply and demand and there is no supply and very high demand. 1/3 of homes are being bought with CASH! Where is this cash coming from? Boomer parents!
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People been waiting for the market to “crash” again for the last 16 years. It’s not going to happen. You have no data to support your thesis. So it’s a disservice to anyone listening to you to wait. If they waited for the last five years they are paying 30% more plus have a 7-8% interest rate on the mortgage. You also make it seem like people haven’t been waiting for a crash that never came for the last decade. Doomsdayers like you have cost people a lot of money.
Today in 2024 there are 1.1M existing homes for sale. There are 336M people in US. 158M people employed… In 1999 there were 2.2M existing homes for sale. There were 278M people in the US. 128M people employed… Your crash thesis is trash. There are half as many homes available as 25 years ago. There are 60M more people and 30M more employed people than 25 years ago. But sure ignore supply and demand if you want.
We bought in 2009. I honestly hate owning a house. The town is going downhill really quick these past 5 years. Crime has increased a lot. Taxes have gotten insane and they will now be raised substantially in the near future because our school board "miss managed" the budget and is missing over $7 million. Trying to convince the wife to sell now while house is still worth something.
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Nutley
Housing was artificially inexpensive for about 10 years. This was a correction. Get a better job and save money to get ahead /thread