In this YouTube video Ramit Sethi poses the question, "why is it that Boomers were able to buy houses on a single income, but for young people, even saving for a down payment feels impossible?”
He says that Boomers built wealth in a system that no longer exists and claims that the worst part is, after they benefited from it, they changed the rules to make sure that other people couldn't do the same thing.
Ramit says as soon as they bought houses, they rigged local city councils and local governments to make it literally impossible to build more houses, which limited supply. And we know that limited supply plus higher demand equals higher prices.
I’ve often thought for years there weren’t enough affordable starter homes for people with limited income. I don’t think Boomers rigged the system though as I know plenty of that generation who were not wealthy. I did find the video interesting to watch though and thought you might enjoy it too.
Belinda
Homemaker at Heart
Dear Belinda, thanks for sharing this video, I will check it out. 😀
ReplyDeleteYou’re welcome, Linda. 😊
DeleteI don't know how young people are even keeping their heads above water these days, but I don't think the Boomers rigged the system either.
ReplyDeleteI agree on both counts, Martha.
DeleteI think in some areas this could be true, but mostly it is whining. You just have to work hard. I could be wrong.
ReplyDeleteExcellent point Kim!
DeleteHappy Thanksgiving
ReplyDeleteHappy Thanksgiving to you too, April.
DeleteI don't think Boomers rigged anything. Sure house prices were lower, but so were wages. I think we learned from our parents to save and make do until we could purchase a house we could afford.
ReplyDeleteBoth our sons own homes and both purchases homes they could afford on their salaries. They did not go out and purchase a home that the price was crazy for.
I often wonder if some of the younger generations were spoiled by us as parents or grandparents into thinking they could have whatever they wanted and spend as much as they wanted even if they did not have the money to do so.
I will take a look at the video a bit later.
God bless.
The younger generation thinks so differently from the way I think. I run things by Bailey, so I get a firsthand view of her generations thinking. I don’t know why there is such a difference in the two, but I know some of them feel cheated. I’m glad your boys were both able to get homes they could afford on their salaries. I know that gives you some peace of mind.
DeleteThe video made my skin crawl. Most of the younger generation I know would never live in our first home.( bought after 4 years of apartment living and saving everything we could)We bought one of the least homes in a moderate neighborhood (imagine a living room with a wallpaper beach scene covering 3,walls) a functional but seriously dated kitchen that came with a stove only. We scavaged a still running fridge from Moms basement, bought second hand mismatched washer and dryer, and welcomed any cast off furniture anyone didn’t want, bought a tv from a motel that was closing and were proud owners of a cinder block and board bookcase.
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DeleteWe had friends who had a bookshelf like that. 😂 Our first bedroom suite belonged to my ex dh and was that blond furniture from the 1960s. 😂 Our first house needed so much work! We rolled up our sleeves and got busy. No one was coming to rescue us. 😉
I figured some people wouldn’t enjoy the video and we would have a lively discussion here. I think he is really stretching some of his points. I just don’t believe that Boomers rigged local city councils and local governments to make it literally impossible to build more houses.
I still use as my dresser and one night stand my husband's once blond furniture from the early 60's. I painted both black about 15-20 years ago after shopping and noticing how poorly made and expensive new furniture often is, and with the paint, looked updated. I agree with many points made from the younger generation mindset but think it's mostly the "flippers" and corporations that buy up affordable housing stock, not some mission by the boomer generation to deny home ownership. I also agree expectations for starter homes might be unrealistic today as well.
DeleteExcellent points, Sam. I agree about the corporations and flippers adding to the housing shortage. And I’ve read a lot about groups like Warren Buffett types having multiple mobile home parks such as in Florida and making a fortune off of the. But that is one way people build wealth too.
DeleteYou were so smart to paint your 60s furniture because you’re right, it’s not made that way today.
I really appreciated this blog post. As a boomer myself, and someone in the cabinet painting industry, it's important for me to self-reflect and see where I can get better. Thanks for sharing. Happy Thanksgiving.
ReplyDeleteYou’re welcome, Hazel. I’m always happy to share.
DeleteMy husband a I were just talking about the lack of "starter" homes in our area. Do I think it is rigged? Maybe. Thanks for the video.
ReplyDeleteYou're welcome, Amy. Happy Thanksgiving to you and your husband.
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