Gone are the days when you could get into a home with only a $35,000 annual wage. These days, two people must make at least $80,000 each to qualify for a mortgage. Maybe even more.
The cost of living in the United States of America is getting out of control, and things aren’t looking good for the future.
Young adults are living at home much longer, which results in them delaying starting families or not starting families at all.
The average rent in the United States averages around $2,000 a month, resulting in people not having enough money to put into their savings after they finish paying their rent and other bills.
And so many other things are making living in America unaffordable. I don’t blame people for selling everything and moving overseas to a cheaper country. After a while, the expenses, bills, and just running a continuing rat race can stress you out.
Let’s talk about the state of the home prices for a second.
According to Redfin.com, the average home price is $418,000.
For a single adult to qualify for a home of this price, at the current interest rates hovering around 7%, they would need to make at least $115,000.
Statistics show that only 18% of Americans make six figures and above. So few single people could afford a home at this price. If you are married or decide to buy with your partner, you can qualify for a mortgage of this price easier because you have dual incomes.
Still…one shouldn’t feel he needs to be married or involved to get a slice of the American pie and live a comfortable life.
Next, let’s talk about national rent averages.
According to Rent.com, the national average rent is $1,995. Let’s round it up to $2,000 to keep things simple.
To afford this kind of rent, many would need to work two jobs, get help from someone else, or share their living space.
I remember back in the day, in my area, rent for apartments was only around $700-$900. Now it’s double that for even fewer amenities. Now with extremely high rent prices, young adults are having a harder time leaving home because their jobs are not enough money to pay their rent.
The last topic I want to talk about is inflation.
Inflation is affecting each of our lives in one way or another.
We all are paying increased prices on products, goods, and services than we did years ago.
It’s affecting everyone’s pockets, and it looks like inflation is not slowing down one bit.
The Federal Reserve has been hiking interest rates to curb inflation, but it seems it’s not working. There is just way too much money out there chasing too few goods.
I don’t know what will happen in the future, but I want to tell you to stay aware and get prepared. It will be a bumpy road in the years and months ahead.