It will take 29 years for college grads to save 20% down on SF home, study shows

[RKP5637]

A fine example of just how F'ed up the economic structure of this country is!

http://blog.sfgate.com/ontheblock/2015/07/09/college-grads-must-wait-29-years-to-earn-20-sf-metro-homes-for-those-without-education-its-never/#photo-659779

According to a new Trulia study, it will take the average Bay Area college grad approximately 29 years to save 20% down for a typically priced home. For those prospective buyers with no degree, forget it. By this study’s calculations, that 20% down savings is impossible for millennials who didn’t earn a college degree. The gallery above gives a picture of what the San Francisco market looks like now. In the future, it’s going to be even worse, from the buyer’s perspective.

Method

Trulia says, “Our study calculates how many years it will take a millennial (young adult aged 25-30) to save a 20% down payment in the 100 largest U.S. metros assuming that home prices and incomes will increase over time – with and without a college degree.” Of course, the whole study projects into the future. By the time these grads begin looking for homes, prices will be higher still than they are today. To estimate how much the required down payment will grow over time, Trulia uses the 20-year Federal Housing Finance Agency (FHFA) home price growth rate for each of the 100 largest U.S. metros based on current median prices.

[lumberjack_jeff]

1. It took 2 years for a septic truck driver to save a down payment in my town.

3 br, 2 bath, 2200sf, .75 acre corner lot.

The point appears to be to avoid San Fransisco.

[madville]

11. It's pretty cheap where I live

I live in North Florida, I have a 1300 sq ft house on one acre that cost $90,000 and the property taxes are $600 a year. It's cheap living, my 15 year mortgage I refinanced is $540 a month with taxes and insurance included.

I only make $60k a year, I couldn't imagine trying to survive on just that in some of those expensive cities.

[randys1]

2. See why allowing humans to own land is stupid? Are people finally figuring this out?

You see when you allow people like Donald Trump or the Koch Bros or anybody to own land, you then give them the power to determine what land is valuable and what land isnt, and then you allow them to price that land out of reach for most people.

[RKP5637]

5. It's basically hoarding of resources crowding out the potential of youth IMO. n/t

[randys1]

9. In SF it is due to Twitter Execs and FB execs, driving up the values because they have so much

money to throw around.

The basic problem is allowing humans, individual humans, to own land.

The pricks of the world like Trump and the Koch's set the standard for greed, then many follow.

[RKP5637]

12. NYC has similar too. As you say, the standard for greed is set and many follow. I think for the most

part it's endemic to the nature of humans given the chance. Not always, more often IMO. Out of control capitalism fuels the greed, many exceptionally talented individuals are run over, crowed out in many aspects beyond housing.

[randys1]

15. Take land ownership out to it's logical conclusion. Teaparty defunds national parks

Koch Bros buy Yellowstone and Waikiki Beach.

Think about it

not that YOU have to, but others seem to need to

[Nuclear Unicorn]

6. Good grief.

Do you really think SF's housing prices are caused by Trump and others cornering the real estate market and the solution is to somehow annul the rights of tens of millions of other homeowners?

San Francisco may be in America but it is not typical of America.

[Travis_0004]

17. How do you fix San Fransisco?

Its a great place to live, but its surrounded by water. Most other big cities we could expand outward, but that is not an option.

If there is room for 4.5 million people, and 5 million people live there, then some people cant live there regardless of what your solution is.

Also note that zoning laws in a lot of SF don't allow buildings over 40'. I'm not at all against historic charm, but if you won't allow somebody to demolish a 3 story building and put up a 20 story building, then you can not expand to fit more people regardless of who owns or does not own the land.

[randys1]

18. Tough place to fix, but the overall issue is made obvious in SF...MONEY

and the ability to own land.

Combine a bunch of very rich people with a very minimal amount of space, and BECAUSE you are allowing land ownership, you cause this issue.

But the same issue plays out everywhere, just to different degrees.

[Nuclear Unicorn]

19. You can't hand-wave away land ownership but even if you could

currency inflation would still drive up rental prices.

[Nuclear Unicorn]

3. "A fine example of just how F'ed up the economic structure of this country is!"

The whole country or just places like San Francisco? Because I'm pretty sure where I live didn't cause SF's housing prices.

[RKP5637]

4. It's a severely skewed economy not workable into the future. n/t

[Nuclear Unicorn]

7. Then that is for San Francisco to untangle.

[RKP5637]

8. It's not just SFO, it's across the US in many metro areas. SFO is just leading the herd at

this time.

[randys1]

10. Greed is thought of as a virtue by some, including some here.

Pretending the problem is isolated to certain cities or locales, what a mistake THAT is

[RKP5637]

13. Well said!!! n/t

[Nuclear Unicorn]

16. My husband and I are both under 30 and we own our home.

I fail to see why we should relinquish what we have worked for after scrimping and doing without in order to buy our home. Whatever the problem may be we're not part of it.

[KamaAina]

14. We're already on the case

http://www.democraticunderground.com/10026957461

[geek tragedy]

20. Most buyers are couples who pool savings.

My wife and I saved for 10 years before buying a place in Brooklyn.

But it is unfortunately out of reach for most.

[sharp_stick]

21. I turned down a good job

in San Francisco because I'd have to live more than 2 hours away to find a place.

[RKP5637]

22. And many talented people will. My hunch is the SFO area and valley will eventually suffer a

brain drain to other pasts of the US. In fact, that is already occurring. I spent many years there and have experienced the drastic changes as have many leaving the area.

[seveneyes]

23. Go South young Graduate