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MarketWatch@marketwatch When Tanisha Saunders graduated from college eight years ago, she felt optimistic that she was on her way to achieving an American dream that included homeownership. She took some steps toward that goal, including researching programs that help first-time homebuyers. But in recent years, Saunders, 36, says she has “freed” herself from the idea of becoming a homeowner. “The price of homes is so expensive and I just don’t see it as a part of my reality,” she said. And it’s not just the expense she’s concerned about. Traditionally, homeownership has been associated with stability. But with insurance premiums and property taxes rising, the prospect of unpredictable maintenance costs and the risk of climate change affecting properties in Los Angeles, where Saunders lives, owning a house seems risky, she said. A sense of assurance is crucial to her, in part because she has experienced homelessness and housing insecurity. For now, Saunders is living in a two-bedroom apartment that’s paid for by her employer as part of the compensation for her job as a property manager. That has helped her avoid the stress of elevated rents, but she still feels pressured by rising costs for groceries, gas and other essentials. Saunders said she and her friends lament how challenging it has become for them to buy a home when compared to their parents or even their older siblings. “The landscape has changed,” she said. Saunders is not wrong to feel like it’s a historically difficult time to buy a house. The median U.S. home price now hovers around five times the median income; historically, that ratio has been closer to 3 to 1. The share of 30-somethings who own their homes has dropped more than 5 percentage points in the past 20 years. These trends collide with longstanding financial advice for 20- and 30-somethings: Sock away funds for a down payment and buy a house, both as a place to live and as your main source of wealth. With homeownership increasingly out of reach, what does that mean for the long-term finances of people who are renting indefinitely or living with family because they’re locked out of this traditional wealth-building tool? Read more at the link in our bio.
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A preview Instagram ships with the post — 6 of 6 public comments.
@cosmo_the_mini_doodle What’s happens ? You die without a house .. i saved you from reading the article
@erik.blomquist Buying a house is a bad idea.
@codyb551 I dint get that. You’re just paying someone else mortgage
@miladmohammadikhorramabad Interactive brokers revelations 🔥
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