Few milestones in life mean as much to the American Dream as owning a home. And millennials have encountered the kind of trouble totally befitting their generation, which largely graduated into the teeth of the disastrous post-2008 job market. Just as they entered peak homebuying and household formation age, housing affordability is at 40-year lows, and mortgage rates are near 40-year highs.
The anxiety this generation feels about the prospect of never owning their own home affects their entire perception of their finances and the economy, says Moody’s chief economist Mark Zandi.
“If they feel like they’re locked out of owning a home it colors their perceptions about everything else going on in their financial lives,” Zandi says.
Millennials have long been dogged by a brutal housing market. They faced not one, but two, cataclysmic economic events—the Great Financial Crisis in 2008 and the pandemic in 2020. Both of which left them reeling financially and struggling to afford a home. The Great Recession decimated the real estate market as the economy nearly collapsed under the weight of tenuous mortgage backed securities. While the pandemic brought with it a remote work boom that caused millions of citydwellers to flee to the suburbs, sending housing prices soaring.
The only way it's remotely viable is if you're willing to move out to the middle of nowhere. I've decided to go that route, with only about $200,000 to my name I was able to buy 4 acres of land and get a pole barn put up and turned into a house.
The trade-off is that I'm about an hour and a half out from the nearest actual City the only thing nearish me is a tiny town with a population barely reaching for a thousand of primarily retired elderly people
But I decided that this was better than feeling trapped in the city forever in shitty apartments with ever increasing rent