This is unnecessarily confrontational and inaccurate. According to census.gov, the current national homeownership rate is hovering at about 66%, which is about the same rate that it's been (+/- 3%) since they started tracking in 1964 [0][1]. This isn't restricted to old people either: 49% of 30 to 34 year olds and 58% of 35 to 39 year olds owned a home in Q4 2023 [2].
There are certainly regional differences in housing affordability, but the average American lives in a home that they own by the time they're 35.
[1] edit since there's some confusion—here's the direct link to the table I'm citing from, entitled "Quarterly Homeownership Rates for the U.S. and Regions: 1964 to Present"—https://www.census.gov/housing/hvs/data/histtab17.xlsx
If you look into the "definitions" section it defines "Housing Unit. A housing unit is a house, an apartment, a group of rooms, or a single room
occupied or intended for occupancy as separate living quarters."
and "Householder. The householder refers to the person (or one of the persons) in whose name the housing unit is owned or rented [...]"
49% of people aged 30-34 aren't homeowners, 49% of us are homeowners or renters.
> The avg American is completely priced out of owning a home right now.
You haven't disproven this statement in any way, you've just linked to some statistics that show we can still afford rent.
No, I'm not. I'm citing the numbers in the table entitled "Quarterly Homeownership Rates for the U.S. and Regions: 1964 to Present"* (emphasis added). That table is talking about homeownership rates, not householdership rates, and the definition they give is this:
> Homeownership Rates. The proportion of households that are owners is termed the homeownership rate. It is computed by dividing the number of households that are owners by the total number of occupied households (table 5 and 6)
Sorry, I just updated my links to include the citation for the age breakdown, which is in fact the link you linked to.
Note the title of the chart you linked to (tab7.xlsx): "Homeownership Rates by Age of Householder" (emphasis added). This is percentage of householders who own the home that they are the householder of.
EDIT: Also, while I'm at it, here's "Homeownership Rates by Age of Householder: 1994 to Present" (again, homeownership), which shows a 39% homeownership rate under 35 years old, which is about the same rate as it was throughout the 90s. It broke 40% in the 2000s for a while before coming back down, but was never higher than about 43%.
> This is percentage of householders who own the home that they are the householder of.
It is not. It's a ratio of homeowners in an age group to the number of renter households in that age group, which is kinda a useless statistic.
To explain why it's a bad metric take this real (but simplified) example. My roommate and I share a "household". Lets pretend that besides my roommate and I there is only one other person aged 30-34 in the US and they own a home.
The Homeownership Rates by Age of Householder chart would say 50%. 1 owner household / 2 total occupied households.
Now if you read that chart and take it to mean that there is only 1 homeowner and 1 renter, you would be misunderstanding what the statistics mean. There are more renters than homeowners in our example but the metric doesn't reflect that because it isn't meant to.
This is a fair argument and as late as it is I don't have a reply—you're right that there are limitations that I hadn't considered, and I'll have to look at the numbers more closely to figure out what they mean *.
However, I want to note that this represents a sudden change of pace from your original "49% of us are homeowners or renters" and "you've just linked to some statistics that show we can still afford rent".
When you misunderstood the situation, you insisted that I "own it" that I was wrong (when I wasn't). It would behoove you to do so yourself instead of pretending you understood the numbers all along.
* Edit: as an initial thought, I'd argue that the same argument often applies to the homeowner number—my wife and I jointly owning one house balances out you and your roommate.
I'm so terribly confused. How can you read this discussion and come to that conclusion? The whole point is that the number being quoted hides the truth.
Living arrangements have suddenly and dramatically shifted.
Man, those are wide age bands. Big difference from more 19 year olds living at home versus 34 year olds.
And flip that statistic, the percentage not living at home went from 80% to 68%.
Significant? Sure. Massive? Doesn’t seem like it.
And looking at home ownership rates for those under 35 years old, historically - its not that much lower, maybe a 10% relative drop.
So sure, fewer young people owning homes, but it’s <10% relative change. That doesn’t scream crisis to me. The vast majority of young people own homes similar to the past.
It's not comparing 18 year olds to 34 year olds, it's comparing the same age range in different time periods, so the size of the band is also irrelevant. Besides which, 18-34 is a standard range used all the time.
And it seems like you didn't even notice my last comment was your own words.
> 49% of people aged 30-34 aren't homeowners, 49% of us are homeowners or renters.
Wait, this is saying less than 50% of people aged 30-34 live in a home that is owned or rented by them (or their spouse)? I can't imagine a region where this is close to true, since probably near 100% where I live either own or rent. Is there a regional breakdown for this? And where do these people live? With their parents or in a shelter?
They're wrong, they got confused because the header column on the data is labeled "age of householder". This is because the data is the ratio of householders who own their homes to total householders, broken down by the age of the householder.
The title of the tables I'm looking at are "Homeownership rates by Age of Householder", which makes it pretty clear what they mean.
I notice that this isn't even close to the claim GP quotes you making. It's wild to me that you're out here telling the other guy to just own up to their "misunderstanding" while furiously backpedaling your own.
There is subtlety of the "renters are probably systematically undercounted due to the vagaries of householding" variety, but that is neither a straightforward effect (a homeowning married couple with 2 of their parents and 3 adult children under the same roof and 1 single renter in an apartment = 50%!) nor is it remotely what you were saying to begin with.
"Homeownership" rate is a bit of a misnomer, since it's the proportion of occupied housing units which are occupied by their owners.
Homeownership by age of householder restricts the reference set of housing units to those which are occupied by a householder in the specified age group.
This turned into a wild and (perhaps understandably) aggressive discussion.
After reading all of the back-and-forths here, I just wanted to thank you for continually being the clarifying force in this discussion, even amidst the downvotes and fallacies.
As a 41-year-old urban homeowner, I knew I was in a lucky category, but I didn't realize how difficult it actually is to know how lucky based on the available data.
HN has a blindness for the vast land area of America that isn't The Bay Area, NYC, Seattle, Boston, and a handful of other insanely expensive locations. Home ownership has probably plummeted in those markets (I don't have the data) but it leads to certain types of comments being passed around as fact.
The narrative on Twitter/TikTok that every Millenial and GenZ is starving to death and on the brink of being homeless is really exhausting.
There are also people who pretend like problems highlighted in the Bay Area and other metropolitan cities are unique to them. Yet every time it looks like those are just the first wave of the changes that are heading to other regions first. Like the wave of homelessness. People made fun of SF, then it spread to the broader Bay Area, then LA, then other parts of the country. Turns out the effects of income inequality and how it impacts housing are rippling through the US.
While it may be too doomer, it’s worthwhile to listen and understand the struggles of people who aren’t you to understand what’s coming. Certainly home ownership is rarer even for millennials and Genz is likely going to have even lower rates (its a little too early to compare since they’re too young for it)
A lot of problems highlighted in the Bay Are and other [insanely expensive, dense urban areas in the US] are unique to them. Nobody is calmly walking through a Walgreens in western Minnesota shoving everything they can into bags and walking out the front door while 30 people record it. Nobody is putting glitter bombs in bags for news articles in rural Missouri.
Maybe shifts in housing dynamics happen first in cities then spreads to the suburbs, then the exurbs, then rural areas. Or maybe it's just due to how cities are governed, how many people live there, and how much new housing you get in any one year?
Bay Area is usually just 10-15 years ahead of the rest of the country, because it's a region that culturally tends to embrace the future (good and bad) and run toward it.
Bay Area in 2000 was complaining about illegal immigration, bilingual education, and the lights not staying on, all of which are contemporary issues facing the rest of America from 2015 onward. Bay Area in 2010 was in relative boom times from the tech industry, which again is spreading nationwide as tech jobs start getting more dispersed (though it may reverse thanks to RTO). Starting in 2012, housing prices became utterly unaffordable, which again started spreading nationwide around 2022.
Give it another 5-10 years and yes, people will probably be walking through a Walgreens in western Minnesota shoving everything they can into their bags.
To be fair the lights not staying on in California was a local problem and not a portend of things to come, but ironically caused by a Texas company that was committing insane levels of unrelated fraud and in this case was exploiting a loop hole in the energy grid to shut down their California plants in times of high demand to cause high purchase prices to import from their Texas plants.
It was allowed because it was politically convenient - they were tied into Bush’s inner circle and the energy problems were convenient in making Gray Davis unpopular and causing his recall to then install a Republican governor by the name of Arnold instead. Ironically Arnold created reforms within the political structure of California to solidify Democratic control of the state.
If you’re not familiar with that, look up how Enron fucked with the California power grid and the Bush administration prevented California from discovering it nor making changes to stabilize the grid (or something along those lines - I may have gotten some of the details wrong).
> People made fun of SF, then it spread to the broader Bay Area, then LA, then other parts of the country. Turns out the effects of income inequality and how it impacts housing are rippling through the US.
These aren't automatic, though. Who's to say they aren't produced by policy that's often done first in SF first?
The policy is usually in response to the problems, not vice versa. California is actually dysfunctionally democratic (with a small "d", not "Democratic"). The state constitution gives ballot initiatives powers that they don't have in many other states, and the state has a tradition of individual rights and political activism that means the citizenry isn't shy about using that.
A lot of people in the rest of the country tend to think "Oh, that's just dysfunctional California politics, we'll vote in different policies and things will go differently for us." Yes, you will vote in different policies. No, things will not go differently for you. California voted in different policies too - remember that it's the source of the Reagan Revolution, the hippie generation, the Chinese Exclusion Act, all sorts of policies that took hold nationally but are now the antithesis of what California stands for.
At the root of this is a misperception of the power of politics. Most ordinary people think that laws are laws and the people who make the laws have ultimate power. California (and U.S. history in general) proves that laws are reactions to specific social and demographic forces, and the laws reflect the shape of those forces. Economics drives politics and technology drives economics.
California is also dysfunctionally Democratic (big "D") in that all elected state level offices have gone to Democrats for the last several election cycles. Because the Republican Party has imploded and third parties have failed to gain traction we now live in a single party state. Politicians are selected by Democratic Party leaders and are no longer accountable to voters in any meaningful way.
This problem isn't particular to the Democratic Party. Other states now have single party Republican governments with similar levels of dysfunction and corruption.
The implosion is because the top two system in California ensures that Republican candidates never even get on the ballot because the GOP is so unpopular.
The top two system by the way was a popular ballot initiative championed by Schwarzenegger to remove the gridlock from the state and remove the power of individual parties.
Ironically Schwarzenegger came to power because of shenanigans the Bush administration and Enron were playing with California’s power grid to remove Gray Davis, a popular up and comer who could be a threat.
So in essence, your complaint that only democrats win in California and somehow that’s because of the Democratic Party is ironic because single party rule in California is due to direct efforts by Republicans to make it thus. It just turned out that the federal politics of the GOP shifted the state very solidly blue and turns out single party rule by Democrats seems to be quite popular given how the state flourished in the years following.
> So in essence, your complaint that only democrats win in California and somehow that’s because of the Democratic Party is ironic because single party rule in California is due to direct efforts by Republicans to make it thus
There was no complaint. I don't see the point in such a partisan way of thinking.
> single party rule by Democrats seems to be quite popular given how the state flourished in the years following
This doesn't seem to be the case now. Lots of people are leaving California, as far as I can tell[0].
> But this trend is now shifting, with a sharp increase in the number of higher-income adults moving to California (up 30% in 2022 versus 2021) and a slight decline in the number moving out. The net effect is a strong rebound from the pandemic years.
Basically the trend of pushing out lower income people is continuing because California still struggles to keep CoL under control.
Be careful trying to draw political conclusions from migration data, because it tells an economic story.
The migration data you cite says that the people leaving California are generally lower-income households without higher education. The people entering California tend to be highly educated and have very well-paying jobs [1]. California's housing stock is more or less fixed; actual housing construction is round-off error to the current population. What's happening is that high-earning immigrants are outbidding lower-income residents for the fixed supply of housing, and then faced with soaring housing costs, those lower-income residents are moving to states where their income places them higher on the social pecking order.
Yes, urban hellscape problems tends to spread to other urban hellscapes, but there exist places to live other than urban hellscapes.
There's a peculiar form of blindness that strikes the Urbanite, as if there are no other places to live.
The people who live in flyover country are barely even recognizable as human, so you might as well ask me to move to Mars! How the hell am I going to be seen in public drinking my $12 microbrews or pretending to appreciate the Moma so that other people know I'm the correct class of person? God, what would my parents think? I'd rather die than live there, so that place doesn't even exist for me.
So instead we should be looking at the massive failing small towns all across the area for examples? Humans population grows and it has to go somewhere. Humans are social animals so we congregate. Congregated humans also create opportunities for each other. Yes problems come with that but framing it as “this is the problem of urbanites” when more than half of the world’s population lives in cities is an othering framing that doesn’t actually help anything. There’s plenty of problems from small town communities spread all over the place too.
“It’s those damn young people”. “It’s those damn urbanites”. “It’s those damn techies”. Replace that kind of thinking with religious or racial terms and consider how you’re looking at a very large and diverse group of people.
I live in a mid-sized European city right now, which I'm sure explains a lot of the bias in my response but there do exist relatively affordable cities with a good quality of life, and I'd rather live in a place where I can walk to the supermarket and the pharmacy and the town center rather than have to drive everywhere.
High population density also (generally) means more social activities, which can be important for some people (like myself). Living in a rural area kinda scares me because I'm afraid I'd be quite lonely.
On top of that, for those of us who don't have the privilege to remote work, living in a city is often necessary to have a job.
How’s the situation in European cities? I’ve also wondered if many of the problems are culturally specific to American views on individualism and capitalism and distaste for socialism given how similar many European cities are to large American cities with a major difference being social and cultural norms.
Pretty much. I used to live in a mid-sized mid-West city in the US and still keep in touch. Most everyone I know bought a house, even with the modest wages they had. Why? Because there are plenty of homes in the $100-$200k range, even now.
Hell, you can buy beautiful, updated small mansions in the heart of many small midwestern towns for under $200k.
The trouble is:
1) no local jobs to speak of (unless you want to clerk at the farm & feed or assistant-manage the McDonald’s out by the highway)
2) nearest hospital that can do more than stabilize you before shipping you somewhere better, is over an hour away.
3) the schools are really, really bad
4) no local services or amenities. Hope the nearest state park (if any) is really good. But if it’s a midwestern one it’s probably not.
Remote work, being young and healthy and willing to take a little extra risk, having no kids and planning to have none, and being kinda a home-body (or being really into readily available rural midwestern outdoor activities like hunting and fishing), can make it a viable way to go, but that’s a lot of qualifiers.
In our medium-ish sized midwestern city there are smaller slightly-run-down houses in the low $200Ks, but universally in bottom-half school districts for the city. Solid choice if no kids, though. But also local tech jobs pay at most 50% of big-city equivalents.
They exist, but they’re needles in a haystack. Especially if you exclude rural districts that aren’t cheap because they’re basically captured by the same folks who attend the country club the community’s centered around (there are a few of these, particularly in the Northeast)
There are lots of schools in rural Pennsylvania that still have affordable real estate. Most of them have AP, college in HS courses, clubs, sports, etc. The metrics might not look as good as suburban schools because of the lack of home support or need to work for the larger percentage of disadvantaged students.
I think that's a part that gets ignored in most school comparisons - the largest differences are due to the level of home support, which is highly correlated with better incomes. So we have a cycle of implicit financial segregation. Many schools (in my area) have similar scores and outcomes if we exclude the disadvanged group from the metrics (because unless your child fits that category, that metric doesn't apply to them). So most people end up counting the wrong metrics for their kids.
Plenty of examples of far better options in mid-sized cities that have level 1 or 2 trauma centers, very good school options and lots of local services and amenities. And housing that is under $300k for a single family home.
> The narrative on Twitter/TikTok that every Millenial and GenZ is starving to death and on the brink of being homeless is really exhausting.
The algorithm has turned (some) people into whiners and doomers. It really sucks to watch them take defeatist attitudes on everything in life.
I see lots of these young 20-somethings on Reddit thinking their lives are over. It's absurd. They have their entire lives ahead of them, and all it takes is one break into a career.
They even think climate change is going to "kill all of us" before they're elderly. That's not even what the science says.
On the topic of having children, though - people aren't having kids because they're choosing to focus on themselves.
There are ten times as many forms of entertainment today as there were in the 1980s, and people can endlessly consume content in their hands. You can go glamping at a music festival, post it on Instagram, and hook up with new friends and romantic partners you meet. All incredibly easily. Our culture has become built around experience and consumption.
I know people in their 40s that are partying, going to clubs and concerts, doing bar crawls, cruises, visiting abroad, jet setting, and climbing the corporate ladder while living incredibly active lives. They don't want to give up their lifestyle to suddenly have to raise children.
It's wild that, not too long ago, you could afford a house and a car on a single income as a mailman. That is unthinkable today. We understand there are ways to be successful, but it's like that saying: anyone can be successful, but everyone can't.
I know a lot of people who spend their money on experiences because they genuinely believe they won't get a retirement, so they might as well enjoy their life while they can. I'm part of this group. I don't think the world will literally be over by then, but the future looks bleak. We've also been drilled from birth that you should never have a child if you can't afford it, and people are taking that advice to heart. And because you can't afford your home on a single income anymore, more and more parents are having to rely on childcare, which is itself expensive.
The issues are just compounding. If you just want to believe that everyone is too enamored by their phones to procreate... that's your prerogative, but yikes.
> It's wild that, not too long ago, you could afford a house and a car on a single income as a mailman. That is unthinkable today.
to be fair it was unthinkable the day before yesterday too. in the history of human civilisation, that kind of setup has only been possible in a handful of countries, for a few skin colours, for a couple of decades. fueled by burning cheap fossil fuels taken from poorer countries
In the history of human civilization, before that kind of setup most people didn't worry about having a house, because they lived in villages, so they lived next to their extended family, and either stayed together under one roof or eventually moved couple hundred meters to the side and built their own.
Expectations for quality of life were lower, sure, but the problem of not being able to find a place to live anywhere near your family or job, that is relatively new and getting worse.
> in a handful of countries, for a few skin colours, for a couple of decades. fueled by burning cheap fossil fuels taken from poorer countries
Also: I know it's trendy to make everything about skin colours these days, but that's a distinct USA-ian bias. The rest of the world doesn't work that way.
I won't argue against exploitation of poorer countries as that, indeed, was a big theme in the last century or two. However, note that whatever many hard problems people in those poorer countries have, affordable housing isn't one of them.
> Also: I know it's trendy to make everything about skin colours these days, but that's a distinct USA-ian bias. The rest of the world doesn't work that way.
Europe's industrialized genocidal tribalism of 20th century, the modern islamic experience as an immigrant in Europe, 21st century genocide in Africa and the Middle East, Japan's war crimes in east asia during WW2. Where is this rest of the world you speak of?
You are proving my point here, by conflating together total war for world domination, anti-immigration sentiments (in case of Islamic immigrants, with a healthy dose of Islamopobia thanks to two decades of US anti-Islamic propaganda), civil wars, ethnic conflicts, regional conflicts, plain old war between nation states, and war crimes against POWs of the same racial group.
The rest of the world is where we can distinguish these different reasons, motivations and patterns, instead of lumping them together with racial discrimination and calling everything "racism".
I was perhaps broadening "skin colour" to include "ethnic" or "national" or "racial" distinctions, but I think that's a distinction without a difference.
If we want to say "The US has been bad", I'm on board and wholeheartedly agree. But using "The Rest of the World" as the counterexample, I'm not sure that will hold up.
I imagine we broadly agree and would love to have a cup of coffee with you some day!
In 1950 you could afford a car and house on one income - but that house as much smaller than the typical house today. You also had one car not two, your wife (this was sexist times - men worked, women stayed home) probably didn't even have a drivers license. If she did she couldn't drive anywhere when you were at work unless she drove you to work. (thus door to door salesmen: sell things those housewives need but cannot easily get because their husband is at work. Send both partners to work and suddenly houses get larger and you have two cars.
Note that despite the above, in 1950 women did often have jobs. It wasn't the "ideal" and it was less common (and even less common if you had kids), but plenty of women had jobs.
In the 1950s the world had gone through two (2) gigantic world wars, one recently, which completely collapsed multiple global empires, killed millions -- especially the young, fit men who are the backbone of the economy -- and devastated multiple countries, many of which were big developed economies.
the US, and certain parts of Europe, were mostly spared this, and as a result could make crazy money because they were the only source of advanced labor around.
it wasn't like that in the Guilded Age or Roaring 20s or Great Depression -- there was a reason all of those labor movements and riots happened then; wouldn't have happened if a one-income mailman could buy a house.
that was a one-off, a time when half the world blew up a few years before.
> In 1950 you could afford a car and house on one income - but that house as much smaller than the typical house today.
"Typical" is doing some really heavy lifting there given the kind of housing stock available in, say, East Coast urban areas. Most of those remotely-affordable houses are a hundred years old in the Boston area, for example.
I would love to see historical rates in urban vs rural/suburban areas for this, alongside migration/growth rates - does something like that exist?
My son (in college) probably won’t be able to afford much of a house in the Bay Area, austin, etc. but originally he was going to become an electrician in Watertown, NY. You can get a house for $120k there, which seems doable on a 50k income.
I've seen it but don't have it on hand. Urban prices certainly seem to have disconnected quite hard from suburban/rural ones, but even suburban/rural might not capture it. I grew up in a not-all-that-wealthy town in Maine about the same size as Watertown, NY--a little smaller actually; an empty half-acre lot there costs more than $120K. (I'd love to move back there, but a house the size of my Boston-area house costs the same as my Boston-area house...)
The formal dining room has now become the home office.
My grandparents raised 5 kids in a 900 sq foot home. They weren't poor. That was the typical home being built in the working class suburbs of Detroit in the early 1950s. Average new home being built today is twice that size for a smaller household.
"your wife (this was sexist times - men worked, women stayed home) probably didn't even have a drivers license"
According to a internet search it seems about half of women had driver's licenses. So this is not accurate. Anecdotal, but I just skimmed The Donna Reed show episode descriptions and a 1961 episode has her fighting a parking ticket, another 1961 episode has her daughter learning to drive.
There doesn't appear to be easily obtainable information on the internet showing how many married women had driver's licenses in 1950 [and just 1950] compared to married men (the federal government did not collect this information), however an article states "In the 1950s many suburban housewives obtained their licenses in order to fulfil their domestic responsibilities." it also states "Perhaps a quarter of women drove before the second world war and more learned to drive during the war."
> It's wild that, not too long ago, you could afford a house and a car on a single income as a mailman.
You can do that today in some parts of the US.
Was there a time when you could do that in NYC? Or San Francisco? Maybe. When the city was down in the dumps and housing prices dropped. Or if you were willing to buy in crappy neighborhoods or on the edge of the city.
It makes me think of my great grandparents. They have a beautiful house in a central location in a major Canadian city worth North of $2.0M. And they did it on the single income of a teacher! I weep for those times.
But oh yeah, when they actually bought the house, it was on the edge of the city where nobody wanted to live. Oh and my grandfather picked up extra jobs to make sure his family of 5 had everything they needed.
There was never a time when it came easy. When people say they can't afford a home what they mean is "I can't afford a house in this specific city that checks all my boxes".
Ddg reckons average mailman salary is about 50k. That’s 1/8th the average house price.
In 1990 it was about 25k with prices about 150k
House prices are about 100k too high, they should be 300k not 400k
One reason for this is more people rely on two incomes to pay for housing, so more money is available for housing, so money transfers from future debt of millenials to existing assets of boomers and gen x.
But on top of that it means two incomes means harder to have kids due to child care.
> But on top of that it means two incomes means harder to have kids due to child care.
Maybe we're also stuck in something of a vicious cycle.
More people not having kids leads to more double incomes. More double incomes means more money to pay higher prices. The market seems to be bearing the higher prices just fine, so they continue to climb...
As someone who is doing well financially I don't think you found the reason.
The gist of it is: There are worlds and circumstances into which people want to bring kids. We mostly failed to create that world and those circumstances. If tou want to know what a solution looks like look at western democracies with high birth rates. E.g. France, Ireland, New Zealand, Denmark.
The rest is probably due to individualism. Kids cost time and energy and capitalism tells us we should live our best lives. And the best live does not involve herding 6 kids, even if they are your own.
We created this world willingly, and the low birth rate is a consequence — and so is the need for migration if we wanna stay wealthy. The thing is: now that the genie is out of the bottle we are not gonna be able to force people to have kids. We can just create circumstances in which they are willing to.
I am in my 30s and I am unsure if I will ever be able to retire. I am sure however that I will have to change my job and career multiple times throughout my life. Despite me being financially well off, I am not sure if I would be able to support kids in the future. This is not about being whiny. I just think if I had kids it is my responsibility to throw them into a world that can sustain them. This one can't.
> We mostly failed to create that world and those circumstances. If tou want to know what a solution looks like look at western democracies with high birth rates. E.g. France, Ireland, New Zealand, Denmark.
Those countries all have a fertility rate [0] almost identical to the US - three of them are lower if you look at 2020 figures. All of them have been relying on immigration [1] to maintain their demographics, with various levels of backlash in recent years. The US is still ahead of all but Ireland on that immigration list.
In Ireland at least, the narrative around the "housing crisis" and people being priced out of starting families is far stronger than what I get from US media. So I think you need to look elsewhere.
Here's my related guess: many people want to wait until they feel in an appropriate position personally and financially before they have children. That might mean earning a certain amount or feeling like they have a foothold in home ownership or waiting for a future renovation. Only, the world in 2010+ constantly exposes you to bigger options on top of the issue of housing affordability: more adventures, more expensive furnishings, stories of others' salaries, etc. It would be quite easy to push back child-rearing for 5 or more years if you didn't feel like you were quite where you wanted to be, or wonder if you'll ever get there.
It's very interesting how this thread treats the decision to have children as a purely rational, logistical one. I would argue it is not entirely rational/logical.
It also seems pretty straightforward to me that when a person is constantly badgered to justify why they don't have kids, and nobody accepts the simple answer "I don't want kids", they'll probably come up with socioeconomic reasons like these just to get people off their back, but I see only talk like "they just want to keep their Netflix and travel lifestyles" and "housing market/economy"
Capitalism does not tell us we should live our best life. I think there are strong arguments that capitalism (particularly concentrated private investment in housing) causes low birth rates, but I don’t think capitalism itself causes some kind of consumption-fueled decadence causing us to prioritize fun over children.
Except that consumption is exactly what capitalism drives - particularly manufacturing, where a relatively fixed amount of capital (factories & machinery) can drive higher overall profits if more products are made for people to consume - even if those people don't actually need the products.
Apparently (I can't find the source for this, but it stuck in my mind), faced with a glut of production after WW2, the US could either consume more, or work less. The choice was made to consume more, not least because the industrialists could cream off a larger slice of the pie that way.
Having children still fuels consumption though. The difference is what is being consumed vs if that consumption spending were not spent on children. I think you are mixing up the colloquial definition of consumption of ie random plastic crap with the economic definition that is very broad and includes things like paying teachers.
Similarly regarding manufacturing and production glute, if the hard capital is fixed then so too typically is the hard production (not the case for many kinds of capital but it is for manufacturing) or at least capped. Just like with consumption, it’s a problem of what portion of capital is being expended on increasing production of things for children (housing, schools, kid stuff) or not. In both cases this is ultimately driven by the supply and demand stemming from parents themselves. But I don’t think there is a feedback loop because capitalism does not itself care whether capital goes to kids or not, only whether there is enough demand for capital expenditure to be profitable.
> Kids cost time and energy and capitalism tells us we should live our best lives.
Thought experiment for all the unrestrained free-market folk: how can the free hand of the market can solve for low birthrates? Bonus points if the solution doesn't involve government-issued visas.
Free market is a kind of natural selection. People with inner desire to procreate will spread themselves, people without it won't. Pro-natalist cultures (e. g. orthodox jews) will procreate as well.
This inner desire wasn't selected for strongly in the past because there were other mechanisms to nudge people to procreate (social norms, lack of birth control), but I expect it will play a much bigger role in the following generations.
Well technically those who seek to gain from people having children would want to generate som marketing/propaganda that encourages having kids. Families want big safe cars and would pay a premium for that, singles would be more enclined to drive in old used cars, so theres the car industry. Families usually wants big houses so there that, diaper industry etc.
> I know people in their 40s that are partying, going to clubs and concerts, doing bar crawls, cruises, visiting abroad, jet setting, and climbing the corporate ladder while living incredibly active lives. They don't want to give up their lifestyle to suddenly have to raise children.
That kind of thing, at least to me, seemed to get old pretty quickly. Probably more importantly though, is that we all get old at some point. When fewer and fewer people have children of their own, what happens when the bulk of people get past retirement age? I think it's a huge problem from both an economic standpoint (if there's no productive workers to keep things going, is the state really going to be able to support you in better than awful conditions as you age?) and from an individual and cultural standpoint.
Claiming a legitimate argument is from "the algorithm" is flimsy, unprovable, unfalsifiable, and does nothing except discredit the person rather than the idea. I could claim your argument is from living a life of privilege, but then I'd be addressing the person rather than the argument.
Our house prices, North of Dallas and deep in the suburbs - far from the bay areas and Seattles, have doubled. That includes my home. People in our profession usually have to live by big cities, like Dallas. But the homes are ridiculously priced and it's insane. My juniors have no hope of owning a home that is big enough to raise a family without years of saving. And they're college educated engineers, some of them married with dual incomes.
My wife and I are expecting. Daycare is expensive, but it's only an outrageous expense if you have two people making up to about 3x minimum wage. Below that, it makes sense (at least in our area) to have one person stay home. But the cheapest state-regulated, licensed daycares are around $1500/mo for full-day infant care.
$18k/yr is a lot to spend on anything when you're making $20/hr for sure, but if you've got two professional people making $75-100k/yr each it becomes a very manageable expense and nobody considers staying home to save that.
$75k is about $56k after taxes. And many people that have children tend to have at least two children, so you can double that $18k to $36k/year for those people.
Once you get to that point, it gets harder to justify having someone work just to take home an extra $20k a year. It starts making more sense for one person to stay home (or work a part-time gig that lets them still raise their children) and the other person to try to make a bit more money on their end instead.
My parents got around the daycare cost problem by my mother running a daycare out of the home, so she was making money while still able to raise us. But I imagine that's become so much more risky nowadays (like legal issues, parental trust, etc) that it probably wouldn't be worth doing that anymore.
And as soon as we both graduated high school she stopped doing it and went back into the workforce elsewhere.
Yeah after taxes and then daycare it gets blurry unless you're making well above US median.
even then, I'm not crazy with the idea of random strangers raising my kids. being "qualified" to run a daycare is mostly paperwork. plus I work remotely, and that means I can see my kid 3 times a day, even if I can't really stick around to do serious parenting in between meetings.
my wife's people are also around, retired teachers no less, so having them pop in on the regular helps a immensely. they had 3 kids, several grandkids, and have educational backgrounds in early childhood development, and I trust them to do everything they can to take care of my kid, even if it means occasionally giving them extra ice cream (but, usually, it's grandpa reading books or working on basic math with them, etc.).
"it gets harder to justify having someone work just to take home an extra $20k a year."
An extra $20k/yr is huge for most people. Median household income is around $80k. I've heard it's more like $100k for married couples with kids, but can't find that Stat. With either number(or even 75% of those after tax), that's a large bump (or subtraction).
This was already assuming the person quitting was making $75k though, per the parent, so presumably the other person is making more (or else they would probably be the one quitting for day care). Which means they're already making double the household median.
And once you get to that level, the person keeping the job getting a new job for a $10k-$20k bump starts becoming feasible (I got a >$60k bump when I last switched jobs), and that can make up the difference right there.
Then you have one person who can take care of the children and have time and energy to help with cooking and cleaning (keeping those costs down, especially if you were getting a lot of takeout before), and can save even more money.
There's plenty of families making this decision nowadays, it's not a hypothetical. It doesn't always make sense for every couple, but the marginal increase of income doesn't always make sense for all the added stress of trying to raise children while having two full-time jobs and the house not completely falling apart.
We don't even have children, and we aren't able to fully keep up with cooking and cleaning on two full-time jobs, we just don't have the leftover energy afterwards.
You're on Hacker News. I work in the Midwest, and I'm probably making half or less of the total compensation of people (with half my years of experience) working in Silicon Valley, which is the target demographic of this site. Yet I'm making significantly more than $80k. 'Lots of income' is the norm here.
And $10-20k isn't a huge bump between jobs. I've gotten that much of a bump, or more, at least six times throughout my career. And I wasn't always a software engineer, so it's not just because I'm in a lucrative career.
I haven't gotten it every time, but often enough that this shouldn't be impossible at least once in someone's career if they're extra motivated by switching to a single income household (unless it's a field known for low salaries, like maybe teachers can't expect that much of a bump, unfortunately).
I'd like to get less takeout. I'd be fine with just lunchmeat on bread or something microwaved for most of my meals, but my wife won't. She insists on a 'proper meal' every day, so on weeks we don't cook those (which almost always take me about 1.5-2 hours to cook) we tend to get a lot of takeout. I hate how much money we spend on it, but we can afford it.
House upkeep has been a challenge. Both of us have been pretty low energy after work, so during the week not much more tends to get done besides dishes, sometimes cooking, and laundry.
And then on the weekend we might be out pretty much all day both days (I work from home, so I feel more of a need to socialize on the weekends to make up for it, but even just extended family social obligations can suck up a weekend) or trying to relax from a long week, so not much tends to get done there either.
And so slowly things that need doing start accumulating, until it becomes this big thing that takes a lot of work (and some proper time off) to tackle.
I know it's not just me either. I know several friends and coworkers that hire maids to keep up with housework. People I know aren't making a ton of money comparatively so I wonder how they afford it. We can afford it but we kind of need to get the house up to a certain level before it's even worth hiring a maid (have to do enough decluttering, for example).
Also doesn't help that I keep saying "Well next week let's do better." and it keeps not happening for one reason or another.
I'm glad someone else spends this amount of time cooking. Look, I actually really enjoy cooking. It's almost zen to me to go from programming all day to just following steps, the most complicated of which is usually something like "now add some ingredient but don't stop stirring." It's mindless in a good way but still creative.
But can we talk about how every single unit of time seems to be distorted like it was written in some relativistic hellscape? Any 30 minute recipe takes just over an hour, any "from scratch" recipe takes me half the day.
I find it interesting how income tends to segregate with marriage, and how that exasperates some inequalities.
Having kids for those highly compensated dual income homes seems narcissistic when you get to the root of it. Like why have kids if we're outsourcing their raising to daycare and schools. The we only care about their accomplishments and leaving them with a large inheritance or paying for a fancy school. Then they go off to live mostly separate lives. Look at how well my kid is doing because I set them up in life, even though I barely raised them and rarely see them now. I don't know?
Telling the monthly rate in Texas is not a great metric in general... you must always add the property tax costs. What are those, 300k'ish houses? You're probably looking at at least another 500 a month in properly tax pushing it up to $2300, then if they are built like this add another $200 in for summer time cooling.
1800/month including tax. Real estate tax is high in TX, but not income tax. I prefer this taxation which has to come from somewhere. NYC has high income tax and real estate tax, and the grocery options could still be not close at all.
How far do you have to drive to go to a supermarket from that development? To a library? (Silly me, expecting people to go to a library in 2024, right?)
If Dallas or Houston or Austin had decent mass transit out to those areas that'd be one thing, but they wouldn't be very "mass", and therein lies one of the problems. Car culture increases isolation and generally shits up the world ever further; somewhere like a YOLO development in the suburbs to exurbs is deleterious to human flourishing and saying "well just buy something where you need a car for everything", as opposed to like the one-off Home Depot run or something, is just trading problems.
Yes, of course! And it's reasonable to think that living in both modest precarity and isolation is worse than living in somewhat more severe precarity; "affordable" places to live are inferior goods!
The problem, fundamentally, is that we, collectively and as a country, need to create more good places, rather than to exile people to the bad but affordable ones. We need a concerted effort to have strong towns and to put cars at the edge and not the center of those towns in order to have a healthy community future, and just sneering that you can buy a house in the hinterlands is both non-responsive and cruel to boot.
I agree with you. However, the discussion about housing is normally around how it's worse now than it was in the past, and these types of dynamics have existed for a long time.
Just looked it up because I was curious. Mortgage + Real Estate tax is right at 1800/month. 4 Bed / 2 Bath, new construction. Kroger is 3 miles away with a "cash and go" type place even closer, so about 8 min by car, 20 min by bike.
Point remains, that there is plenty of affordable housing in the US. It's just not where people want to live, thus supply/demand.
No amount of "fuckcars" ideology will matter here, some people actually prefer driving. I know I do, I don't want to be stuck in a subway or bus.
"How far do you have to drive to go to a supermarket from that development?"
That's the system - resource scarcity and preference. If you live in a densely populated area, prices tend to be higher because real estate is constrained. Zoning won't fix all of that because many people have a preference for SFH, larger sizes, etc. You end up with options and amenities, but it will cost more due to the consolidation. Or you end up with space, needing to drive to amenities, and cheaper prices largely due to less competition.
if you get out Dallas or Austin... where are the jobs?
the number of people working remotely, even now, is still comparatively small.
doesn't matter if the housing rates are 50% lower if your only options are minimum wage at some chain (dollar general, chik fil a, etc.), or scraping for one of the few non-wagie gigs.
that doesn't fix the problem, that just means you're getting paid less, while house prices may have roughly the same ratio of income-to-cost that you'd find in DFW or ATX.
and in exchange now you need a car, need to drive constantly, and have fewer amenities and choices (maybe save for access to churches or walmarts).
shit, even far flung burbs of Austin like Taylor and Hutto are getting pricy compared to when I was last out there. Hutto Hippo oughta make a reappearance and start eating the carpetbaggers who keep moving in around there.
Ad hominem means "against a specific person". He made a general argument. Might be good or bad, but in no way it was an ad hominem. Arguing how a group of people conflate or tend to misrepresent this or that, is not an ad hominem.
"Our profession" can work remotely from anywhere. Whether some companies choose to acknowledge that or not doesn't change the fact that we don't need to live by big cities. Most companies do understand that.
Home ownership rate is a poor statistic to make the point you are attempting to make, particularly because homes are "bought" with debt. Saying someone can "afford" a home because they are in one doesn't speak to being able to afford a home or not. Government programs to promote home ownership by taking riskier debt is an even more complicating factor. That was at the core of the 2008 financial crisis, IIRC.
Here is a statistic that is a better measurement of affordability: "Home Price to Median Household Income Ratio."' It shows homes are less affordable. If we could see the 25th percentile it would likely even paint a bleaker picture, at least if you believe those stats.
If you seriously think 40-49%, whatever ridiculous mis-read stat you're choosing to use this time, of 30-34 year olds are home owners I have a bridge to Hawaii to sell you. I'm 40, make around 300k and know a LOT of people my age and the vast, VAST majority don't own houses. I owned a house in 2016 and sold it, I don't want to own a house because I'm single and they're $800k minimum here, none of my friends want houses because for 99% of us it means moving 45 minutes away to some suburb. Would they take a house a block over here downtown? Absolutely, but that's $2mil+.
I can count how many times I walk into an ACTUAL house, like a free standing house not a condo, apartment, or townhouse - on one hand over ONE year. I think I have 2 friends with houses out of 20+ here in Denver, and I'm of course including condos/ths, anything purchasable. Almost everyone I know over 30 lives in a 1-2 bd apartment. And this is hackernews where I can pretty much assume someone like you is so far from the average American reality you have no idea what's going on.
There's already a post right above this from some compsci engineer talking about how, oh no, there really are a lot more americans making over $100k than you'd imagine!!
You don't have any real humans in your life to use THAT anecdata from? You sound like you're vastly out of that age range, your "you're too confrontational uwu" style of writing and you're obvious lack of knowledge related to the topic at hand.
I have anecdata on the contrary. I'm 25 and with my wife have a household income of ~150k. We own a house in a Midwestern major city, and so does 80% of our friend group. I realize it's an outlier, as should you, because most of the country doesn't have 800k minimum starter houses.
I could not care less about what the lives of 25yos in some midwestern city are like. The vast majority of millennials had to move to major cities for work around the 2008 recession.
What's your cities population? Is it even 100k? How much of your anecdata is actually related to this convo, in the sense of what percentage of your midwest people are even relevant to it? I've lived in at least 8 MAJOR (Houston, Denver, Dallas, Austin, Portland, San Josa) since 2008, those population centers absolutely dwarf whatever you can come up with in the mw to affect this stat.
This is like when someone on here chimes in with their amazing $120k house in Oklahoma. Owning a house at 25, whether you're in BFE Alabama or not is also not common.
Just about 2 million people in the metro area. Not the biggest, but not 100k.
Since I can't reply to your later comment yet, I might just do it here. I live in the city proper. It's Columbus OH just to make it easier for you. I'm sure you'll find a way to reason that's not a major city but it is (multiple Fortune 500 companies HQ'd, major league sport team etc). I live ~10 minutes from downtown and the house was 290k.
"Metro" is what suburbanites use to make it sound like they live somewhere more interesting, know anything about that city and its lifestyle, to people who don't know where, and not some suburb outside of it. So, no that doesn't matter. It's not your city.
People who live in BFE an hour or two north of Dallas, that isn't Dallas, love to say they live in Dallas, then you go further, "dallas metro." Nah. Then they find out you actually live downtown because you're asking for neighborhoods IN the city and call you a downtown pretty boy who probably has to fight off muggers daily. Christ, Fort WORTH is in the "Dallas metro" and it's literally it's own city that NOBODY in Dallas ever visits and has NOTHING in common with Dallas. "The Dallas metro has 10 billion people!" Yeah who never interact with one another and live an hour away.
So they love it till it's actually, you know, big scary city stuff. And that's a huge reason why WE don't claim them back. Hearing someone from Plano (rich af suburb) say they live in Dallas to someone from Texas themselves is so cringe. Because I absolutely know they actually hate Dallas, the city. It's different if the person has no idea where and you're just giving a general area.
It’s more useful for many purposes. You have oddball cities like St Louis where the city is really made up of a ton of small cities and towns—but treating them as separate would be misleading in many contexts.
In our midwestern city, we do live in the city limits proper. But if you drive straight from here to the city center, you’ll pass through at least two other towns before reaching it! There are probably seven or eight tiny to large towns in the same general direction as us, but which are closer to downtown than we are (some are just 5 minutes to downtown by car). And our school district is separate from the rest of the city (and shared by parts of some of those other towns)
Like 30% of the population of our metro area and probably 40% of the money is in another state! And many of them closer to downtown than us.
> That's a good point, I never saw the point of "metros" how they used them in Texas.
One role of that way of categorizing, even in less-atomized cities, is to capture the area that’s basically economically dependent on the city. Nobody (more or less) would live in those suburbs and exurbs if not for the presence of the city. It’s like looking at a lake’s drainage basin.
I live in the city proper. It's Columbus OH just to make it easier for you. I live ~10 minutes from downtown. I'm sure you'll find a way to reason that's not a major city but it is (multiple Fortune 500 companies HQ'd, major league sport team etc). It's also bigger than Portland and Denver (but not their metro areas, see why people use that term?). The metro itself is similar to Portland or Austin in size.
You're 25 in Columbus and most/all of your friends own homes? That's .. really impressive. I was one of the first people I know friend-wise, like out of everyone I know in ever city to buy a house, in Austin, and I was .. around 33 I think. $365k 1970s 3/2 in 2016.
Starting salaries post 2019 have skyrocketed though. It took me about 10 years experience to get over 120k, my ex, her second job at 25 was 150k. My first engineering job was $40k in 2006 or so. 2008 wrecked salaries for a decade. Hopping job to job to make an extra $10k because nobody was giving raises and everyone was treated like trash.
Cool good work man, maybe I'll check it out. My rent in Denver is $3100 for a 2br. Denver is SUPER dense for a mid sized city though, it feels way bigger than Austin/Dallas people+shop+bar+etc wise to me because of that. I never drive.
I mean yeah, I'm definitely an outlier. Neither me and my spouse have student debt which helps massively. And while we've done it without the help of parents, I'm pretty sure some of my friends got some kind of assistance that way.
Columbus is nice because it still feels kinda small and driving is still super comfortable because you can get anywhere in about 15 minutes. I still prefer to bike to work because it feels nice but I'm definitely in the minority here doing that.
You can't disagree with statistics. You are living a very unique lifestyle, that is highly paid in HCOL areas with high standards for housing. That is not the norm whatsoever.
All statistics have absolutely correct data and fundamentally sound designs, right? That's literally the entire argument going on in this conversation you've hopped on. How these statistics are being misconstrued or not.
I moved into programming from bartending after dropping out of school. I am absolutely not ignorant to the lifestyles of all of my friends who aren't engineers.
In fact it's the polar opposite. I am vastly aware of how ignorant my engineer friends are to real people. Like all of my $300k+ friends who have massive houses and 4 kids and 2 suburbans and wonder why a huge portion of their friends, like me, aren't giving them playdates or "cousins" to their kids so they have to go find dad-friends at the kids soccer games who their only real commonality is .. kids.
It's certainly possible that there are errors in the data, but if you suspect that to be the case, the proper argument would be to identify those errors so they can be mitigated, not to dismiss the data in favor of anecdotes, especially anecdotes that may represent outliers.
Whilst I don't disagree with you. That doesn't mean those with mortgages aren't struggling to pay.
Also if true, that is insane that the average american lives in a home that they own by the time they're 35. That is so far and wide not the case here in Australia.
Here in Australia, we don't have fixed rate mortgages for the life of the mortgage we have variable and fixed upto around 1-5 years. Our interest rates have gone from around 2-3% to over 5.8% and the value of homes since COVID have gone up enormously, some 30-40% across our cities and nationally combined 27%.
I know we're just talking about the US here I assume, but I earn a chunk above the average salary and I be considered "at risk" in affording the average cost of a home. I know plenty of people who bought their house 3 years ago right when COVID kicked off, of which they would not have been able to afford it today given the increase in just house prices.
Australia has made a bunch of home-ownership-unfriendly decisions which the US hasn't – e.g. in the US you get a mortgage interest deduction on your primary residence, in Australia you only get it on investment properties (joint filing for married couples, which the US has but Australia doesn't, also helps here); in the US owner-occupier mortgages are normally no-recourse, in Australia they are almost always full recourse; US government policy encourages long-term fixed interest mortgages, the Australian government has no comparable policy
Some of it is also geography – Australia is very centralised, with most people living on the coast. Each state has its population dominated by a single metro area which also serves as the state capital – quite unlike the US where majority of the time the state capital is outside the state's largest metro area.
Australia's comparative lack of rainfall inland is a factor, but political culture, and hence decisions by politicians, also plays a big part – suppose NSW moved its capital to (say) Dubbo or Bathurst? Many government jobs would leave Sydney, followed by many consulting/etc jobs which provide services to the government - right now, central and western NSW has plenty of affordable housing, but a big shortage of jobs providing incomes to pay for that housing. Never going to happen: it would require a degree of originality and thinking outside the box of which Australian politicians are constitutionally incapable.
Some of those things I agree with, however the issue was primarily sparked during COVID like in many countries. Houses prices were relatively affordable prior to COVID and increases in inflation.
Australia kept its record low interest rates in place during COVID, then we had runaway inflation to record high’s like many countries did and our reserve bank failed to increase interest rates even slightly to help with the increases to inflation. We increased overseas migration significantly to help drive growth in the economy which has created an enormous shortage of housing supply. As a result, interest rates have soar’d coupled with record high inflation our cost of living has skyrocketed including housing prices. As I said since 2019-2020 house prices have increased 30%+
Our country has always been centralised to the coast and isn’t necessarily the reason for these costs
People have been complaining about housing affordability in Australia for years. I remember endless discussions of it, media articles about it, and feeling its pain myself, 20 years ago. No denying it has gotten worse, but it was already rather bad.
That said - we bought our house (NSW Central Coast) in late 2015 for AU$550K. At the peak of the COVID price surge, those property value websites were saying it was over AU$1 million. Now they are saying it is only AU$850K. Still gone up a fair bit compared to when we bought it, but also fallen a fair bit off the peak. Of course, those websites are not completely accurate, but what they say is consistent with sale prices of comparable properties in our neighbourhood
> suppose NSW moved its capital to (say) Dubbo or Bathurst?
In a sense they already have, most NSW government departments moved their offices from the Sydney CBD to the Parramatta CBD, which is about 25km west. This helped a tiny bit.
Meanwhile, my multi-millionare ex-boss is struggling to buy a house, because he's being outbid by chinese "students" (lol) to the tune of +$500K over the expected price.
> which is about 25km west. This helped a tiny bit.
It would help a lot more if they added a zero to that number
> because he's being outbid by chinese "students" (lol) to the tune of +$500K over the expected price
I believe that’s a real problem but only in certain suburbs. If you are a well-off Chinese businessperson or government official, and you want to get your money out of China - in case Xi Jinping suddenly decides he doesn’t like you any more - splurging on a residence for your kid at uni in Australia is a good way to do so while complying with the laws of both countries. Still, while it is a real issue in some areas, at a national level I don’t think it makes a huge difference - there’s lots of housing in Australia which isn’t that close to a university campus
Landlords are running a business and get taxed on the rental income of their property. Deducting costs, including interest, same as any other business, is pretty standard and most wouldn't say it's "unfair".
Giving an interest deduction to owner-occupiers is a common policy to promote home ownership. But it's not a "level playing field" with landlords unless you also assess income tax on the imputed amount of rent they are saving by owning.
Reminder that Dubbo (population of only ~40,000) had to have water shipped in on trucks during the recent drought, so there are valid environmental reasons for the current layout too. A lot of those cheaper places are struggling, they cannot support large populations, and it's been said we've used up the good topsoil over the last 200 years so farming may be facing some issues in the coming years too.
I do think we should decentralise, but it will likely look more like Newcastle and Wollongong growing, which will probably feed commuters into Sydney more than they already do.
Also note, Canberra kind of fits your description - a regional "town", servicing the government. And it's also very expensive. As in, recently reported to be the second most expensive place in the country to buy a house, after Sydney. I think our issues are far more political as you point out, so other fixes are just bandaids, but anything that impacts home prices will be unpopular with the dominant voter bloc.
> Reminder that Dubbo (population of only ~40,000) had to have water shipped in on trucks during the recent drought
The Goldfields Water Supply Scheme pumps water over 560 km from Perth to Kalgoorlie; Dubbo is only 380 km from Newcastle. If you were serious about turning Dubbo into the state capital, you would have to give serious thought to building a pipeline to pump water from the Hunter, and then Dubbo would only run out of water if Newcastle was running out of water. (You could also build a pipeline from Sydney to Dubbo, which is only about 20km further, but much more mountainous terrain in the way.)
> I do think we should decentralise, but it will likely look more like Newcastle and Wollongong growing
Newcastle and Wollongong aren't really that much cheaper than Sydney. They are coastal, and everyone wants to live on the coast; also, Wollongong has physical growth limitations due to the Illawarra Escarpment. There's a lot more land on the other side of the Great Dividing Range, and water supply issues could be addressed with sufficient investment in water supply infrastructure.
> Also note, Canberra kind of fits your description - a regional "town", servicing the government. And it's also very expensive. As in, recently reported to be the second most expensive place in the country to buy a house, after Sydney.
Canberra is in some ways Australia's version of Washington DC. Although, DC has a very different social history – e.g. DC has historically (but as of last census no longer) had an African-American majority; and, DC is physically a lot smaller than the ACT is. But, what I am really talking about is an Australian analogue of Sacramento, Albany, Springfield (Illinois), Salem (Oregon), Carson City (Nevada), etc – which is something Australia doesn't have.
All that said, Queanbeyan's median house price is >$50K cheaper than Canberra's, by some measures beneath the average of Australian capital cities. And it is only 20 minutes drive from Canberra. In Sydney or Melbourne, that's what many would call an inner/middle suburb.
> that is insane that the average american lives in a home that they own by the time they're 35. That is so far and wide not the case here in Australia.
You also don't actually need to own a home in order to have kids. I spent the first 8 years of my life with 3 siblings in a tiny 2 bedroom apartment in a student housing development. We bought a home when I was 8, while my parents were in their 30s.
Plenty of other commenters had already pointed out that fallacy of OP's argument, so I decided to take on the idea that homeownership rates have significantly changed instead.
That's, as you say, recent. It bodes ill for the future if something doesn't change, but it can't possibly account for the long-term decline in birth rates being discussed here.
The parent commenter also doesn’t know what the word “housing” means. Being able to afford housing means being able to afford a place to live, it doesn’t mean owning your own house. Just like being able to afford food doesn’t mean owning your own farm, having access to drinking water doesn’t mean owning your own well or river, and having access to the internet doesn’t mean owning your own ISP.
To be clear I agree that affordable home ownership is a big problem, but not being able to afford home ownership is a very different thing from not being able to afford housing, and substituting one concept with the other is just an intentionally dishonest way of muddying the waters of any discussion on the topic.
Ah, I have a hard time remembering that the millennials have taken the boomers' place as the oppressive older generation.
Gen Z doesn't have a monopoly on spending their 20s in a scary financial situation. Let's see what the numbers look like in 10 years—if prior trends (the data I linked to above) are anything to go by, I expect them to be roughly the same as they always have been at about 66%+/-3%.
You better check what the average mortgage payment for new house buyer today and 5 years ago. Diff can be 2-3 times.
Also, actual homeownership is not a perfect proxy for wealth measurement, since it could be that today's gen z are buying 1br condos instead of single family houses like boomers.
You mentioned boomers. They faced higher interest rates, higher unemployment and higher inflation than people do now.
Sure, it may not be effortless coming of working age now, but it would take a staggering level of ignorance and/or entitlement to argue that it’s harder than it was in the 70s when boomers were coming up.
And much lower incomes. We can go back and forth like this all day.
The point you seem to be missing is that it has never been the norm in the US for a 25 year old to own their own home. The closest we ever got to that would be the Silent Generation returning home from WWII and the veterans benefits we were handing out.
My parents (Boomers) rented a dumpy townhouse in their 20s and early 30s while raising two kids. They finally bought their first home at ages 33 and 29 with a 19% interest rate. Money was really tight for the next 5 years or so until my dad's career progressed. This was with a college degree and a management position. Life has always been a challenge for the youngest generation just starting out. Today's 25 year olds look at their parents and forget that their parents have had decades of wealth accumulation and career progression. They didn't start out taking trips to Hawaii every year.
These numbers are all adults under 35, so your argument about generation gaps doesn't apply here. 20-something year olds are included in each decade's numbers, and the rate hasn't substantially changed in the measured decades.
> You better check what the average mortgage payment for new house buyer today and 5 years ago. Diff can be 2-3 times.
That's a separate question from whether people are priced out. If the average mortgage payment is much higher but 39% of people under 35 can still afford a mortgage, then no more people are priced out than were in previous generations.
> Also, actual homeownership is not a perfect proxy for wealth measurement, since it could be that today's gen z are buying 1br condos instead of single family houses like boomers.
True, but I'm not talking about wealth, I'm specifically addressing the question of whether the average American cannot afford to buy a home.
> If the average mortgage payment is much higher but 39% of people under 35 can still afford a mortgage
they afford rate they secured when it was much lower and in many cases houses were cheaper.
Today's 35 first house buyer salary man coming on housing market is also in very miserable situation.
You just stated that over 40% of people under 40 don't own a home. I don't think that proves the point you want it to. And that's before we even get into how much of that home they even "own".
There are certainly regional differences in housing affordability, but the average American lives in a home that they own by the time they're 35.
[0] https://www.census.gov/housing/hvs/current/index.html
[1] edit since there's some confusion—here's the direct link to the table I'm citing from, entitled "Quarterly Homeownership Rates for the U.S. and Regions: 1964 to Present"—https://www.census.gov/housing/hvs/data/histtab17.xlsx
[2] "Homeownership Rates by Age of Householder: Fourth Quarter 2022 and 2023"—https://www.census.gov/housing/hvs/files/qtr423/tab7.xlsx