Two bedroom apartments of Peterson family in Northern California are feeling Small
Four -year -old Jerik’s toy monster truck, outside San Jose, is everywhere in 1,100 square feet in Campbell. And this was only a short time ago when 9 -month -old Caroline began collecting more toys, adding to the chaos, his mother, Jane Peterson said.
The 42 -year -old cowardly hoped that she and her husband, Steve, would be a 39 -year -old dental hygieneist, bout bout. But when they can buy a large space, they have to pay another rent. Peterson has done mathematics: Hatterly high, no way with mortgage rates and home prices, which is a couple, which make about $ 270,000 per year and pay around $ 2.500 in monthly fares, your territory I can buy a house anywhere.
According to the October data from the Federal Reserve Bank of Atlanta, the San Jose family with an average income of $ 156.700 will require to spend 80% of their income on housing-including. 1.54 million houses. It is much more than the general rule of the thumb that people should not pay more than 30% of their income on hostage or rent.
Going out of the state is out of question for Peterstens-they have strong family relations for the area and if they move into a low-cost area then their income will decrease. “I am not ready to quit my job and leave a close relationship with my family for a house,” Peterson said.
According to Atlanta Fed, the issue is at the national level near the broad and historical height: according to the final decline, the middle homeowner in the US was paying 42% of his income 42% of his income. Four years ago, this percentage was 28% and did not reach 38% from the end of the first 2007, just before the housing market accident.
“American Sapna, as our parents knew this, no longer exist,” said Peterson. “The whole idea is that you get a house after graduation, get a stable job and get married? I have done most of those milestones. But part of the homeowner?
supply demand
The homeowners are growing up for the first time. The same is true for the increasing number of American families.
According to a recent report by the National Association of Realters, in 2024, Manjhala was the first homebuyer 38 years old, jumping from the age of 35 last year. It is quite above historical criteria, when buyers were first hovering between 30 and 32 years from 1993 to 2018.
The biggest driver of this trend, experts said, this is simple: there are very few houses in the market, which are to match the paint-up, to run the previous prices from the point of strength for many people who have their career Are relatively hurry in. Coupled with high mortgage rates, many have concluded that his only option is to hire.
Domonic Persvines said, “The wage hike has not kept home prices and interest rates with an increase,” Domonic Parvas said, who study housing at the Federal Reserve Bank of Atlanta in Atlanta, Georgia. “Even though people are earning more money, house prices are rising at a fast rate.”
That difference has left several housing markets, which for generations to create equity and money for Americans is that they can pass or benefit to buy a large house. This is the cause of widespread concerns about housing in the United States. In 2024 elections, a survey of over 120,000 voters, according to AP Votecast, 10 voters under the age of 45 said that “very” was “very” concerned about the cost of the house in their community.
Is the dream going to fade?
Bryan McKebe, a Sociology professor at the University of Georgetown, said that he often tells his students that “there are some things on which all Americans agree, but it is that he owns home fare.”
McKebe said that homewathership, especially as a money-making tool, is the right step for many, especially if themselves intend to stay in one place for a long time. But he said that many people are feeling that they are not the owners of the house, these are the advantages, also – it gives more flexibility to move people and allows them to stay in an exciting neighborhood Are not able to buy.
McKebe said that millenniums are getting married later, later they produce children, have a strong desire to live in cities and, due to distant work, specificly, give importance to the flexibility of being able to move easily, easily able to move forward Are – of which he said that he could indicate to eliminate commercial, he is the homeowner “top of American Dream”.
“The big question is whether we see that the sheen of the homewathership begins to fade,” McKebe said. “This is an interesting cultural marker discovery: Why is there a house peak for so many people?”
This is a question Peterson wrestling because she knows any three-bedroom home found in her area, she will take her family to “poor of the house”.
“I used to subscribe to the idea that being the owner of a house is just a natural milestone that you have to reach,” he said. “At some point, however, what are you sacrificing to own a householder and get equity? I want to be my child. If we are paying a hostage which is the most paid in our house ? ”
Peterson said that she “always hopes a little” that homehornship will be in the future of her family. But if they find a townhouse to rent, which has space for her children and fits within their $ 3,600 monthly rent budget?
“I take,” he said.
City provide support
Some cities are providing important assistance to homebukers for the first time
Juliet Lopez, a resident of Lifestyle Boston, 63, spent decades in the hope of buying a house, but saw that prices were out of reaching fast.
“Prices in Boston became just high and higher and higher,” Lopez said, which works to issue tickets for parking violations for the city’s traffic department.
Two years ago, to find out that the monthly fare of his subsidized apartment was leg for $ 2.900, Lopez, which earns around $ 60,000, took out his phone and first began searching for programs helping homebukers. She was finally firm to make her place.
Within months, she was very much. Lopez qualified to get $ 50,000 from local Massachusetts, now pays $ 2.160 per month on her mortgage.
Lopez knows that it is lucky that the city has focused on the assistance of buyers for the first time as Swayam Boston has put more than $ 24 million in its domestic acts, Sion Mayor Michelle Wu took over in 2021 , About 700 residents got their first place. Home.
But Lopez feels proud of its place after years of working – working in a job that included everything from telecom to health care to electronics.
“I was firm to keep my piece of pie,” he said. “I thought I worthy it. I have always worked. Always. Nonsstop.”
