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349 points pseudolus | 5 comments | | HN request time: 0.001s | source
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oortoo ◴[] No.42474210[source]
Another aspect here I think is the generalized fear and anxiety present in young people. Having spoken to some family members in the 15-18 age bracket, the message they seem to be receiving is that they are without a future... they won't be buying homes, they won't be getting high paying jobs, and that the system is not going to work in their favor. I think people of this age are uniquely feeling mortal and vulnerable in a way teens typically have not, causing them to be more hesitant to risk losing their mind which they may need to protect themselves down the road. But they also are modern teenagers, not only low in willpower but also coddled by their smartphones, which is why technology addiction is the go to "safer" alternative to habitual drug use.

Also, you typically need to be unsupervised with friends to get into drugs, something teenagers no longer have access to compared to 10-15 years ago. If we look at the social decline due to the pandemic, what made experts think these kids would bounce back? They are forever changed, and will forever be less social than other generations because they missed out on formative experiences.

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fawley ◴[] No.42474470[source]
First-time home owners have increased in age[0], the middle class is shrinking[1], education costs have vastly outpaced inflation[2] as have medical costs[3].

Perhaps the generalized fear is not so much about "coddling", but concrete realities. I do not envy them.

[0] https://www.axios.com/2023/11/20/american-housing-market-old... [1] https://www.pewresearch.org/short-reads/2022/04/20/how-the-a... [2] https://www.usnews.com/education/best-colleges/paying-for-co... [3] https://www.healthsystemtracker.org/brief/how-does-medical-i...

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kasey_junk ◴[] No.42477385[source]
More of gen z are home owners than previous generations at that age[0], real wages are increasing for the lower and middle class for the first time since 1970[1]. More people are leaving the workforce than anytime in history, creating high paying trade job openings at an unprecedented rate[2]. Health care costs are growing slower now than any prior decade[3].

Every generation has challenges and benefits. Framing the narrative can happen in any direction and the variance in group is bigger than the variance between.

[0] https://www.cnbc.com/amp/2024/09/05/how-gen-z-outpaces-past-...

[1] https://www.americanprogress.org/article/americans-wages-are...

[2] https://www.protectedincome.org/news/labor-day-peak-65-trade...

[3] https://www.healthsystemtracker.org/chart-collection/u-s-spe...

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Uehreka ◴[] No.42477521[source]
> More of gen z are home owners than previous generations at that age[0]

If you’re going to make a claim this bold and this counter to the prevailing narrative, you’re gonna need to cite a better source than an outbrain-riddled webpage that tells me to “watch our video to find the lede we buried”. I’m not saying this isn’t true, but extraordinary claims require good sourcing and explanation.

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9rx ◴[] No.42478033[source]
> If you’re going to make a claim this bold and this counter to the prevailing narrative

What do you see as the prevailing narrative? The one I see is homeownership itself, which suggests that homeownership has been seen as being hotly desirable. I strongly suspect we wouldn't have a homeownership narrative to speak of if ownership was unwanted. When something becomes unusually desirable like homeownership has, it is not unexpected to see an uptick in participation around it; in this case owning a home. Much of the urban age has been marked with the majority of the population being renters. Everyone wanting to own a home with such furor is historically unusual.

I expect homeownership has become so desirable as it has become seen as a way to build wealth. While, historically, housing only kept pace with inflation at best, real home values have risen by unfathomable amounts in the last decade or two. Which, again, attracts people willing to risk it all for a chance at some of that wealth opportunity. It would be unusual if said generational group had comparatively lower ownership rates given the "FOMO" aspect. People run away when prices are falling, not when they are rising.

Given the market we've watched, the extraordinary claim would be that Gen-Z has lower ownership rates compared to previous generations at the same age.

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jasonkester ◴[] No.42478527[source]
Well said. I remember making a spreadsheet in maybe 1995 laying out the math to compare the real costs and expected gains from buying vs. renting.

It mathed out about even. I decided to go with renting instead of buying, with the logic that the S&P didn’t need me to buy it a new roof every 15 years or to work in its garden every weekend.

It worked nicely too, growing the money that would otherwise have gone into mortgages and property tax, letting me take some of it out recently and buy a house with cash.

I don’t see much of this attitude in my younger friends now. But living cheap and saving does actually work.

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1. FooBarBizBazz ◴[] No.42478955{3}[source]
A 20% down mortgage is a 5x levered bet. Plus you can roll capital gains into new real estate. The S&P 500 cannot offer these advantages.
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2. abduhl ◴[] No.42479939[source]
With the proper mix of retirement accounts, options, and futures contracts it can. It can offer even more leverage if you want.
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3. kasey_junk ◴[] No.42480019[source]
The bigger win is the government subsidies and tax breaks.

You need very little on hand cash to get a very low interest rate. Much lower than asset loans at equivalent levels of wealth.

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4. lotsofpulp ◴[] No.42480285[source]
A 5x levered bet with no prepayment penalty subsidized by future Americans, and it cannot be called and is non recourse in many states. And it provides shelter.
5. pitpatagain ◴[] No.42481155{3}[source]
There is little tax break for home ownership currently with the SALT cap + high standard deduction. You get some break if you have a large enough mortgage or high enough interest rate but it has been very nerfed.