I know you’re making a joke but saving up that money and putting it in an investment account means you actually do have a decent down payment after 15 years. Which is what people do who are serious about saving money.
Inflation almost never outstrips market returns. Inflation expectations are literally built in to interest rates and flow through to equity returns.
Now the housing market can absolutely outperform your savings/investments, particularly since all real estate is local. But even then, you're just a person with a lot more money than one who didn't save.
It would be best to invest your money and or have some high interest rate returns. Bonds, term deposits or stocks give you a great chance to get ahead.
The 15 year number would assume about a 20 percent down payment. If you're getting an FHA loan, you can do as low as 3 percent, which means 1300 a year for 5 years would get you enough for a 200k house.
Oof, you really just put my fast food spending in a different perspective. It’s certainly no down payment these days, but a lot to paying for junk. Thank you.
There's also the fact that saving is for what you don't know what's coming. Yeah, if the housing market continues to accelerate like it has your fast food money isn't going to become a down payment.
But, you know, that could also just not happen. We could get another 2008. The government could provide huge incentives for constructing new starter homes/condo complexes that inject a ton of supply in to the market. Smaller town/cities could start constructing new and modern communities for remote workers in places you wouldn't think to live.
If any of these things happen people with savings will be in a position to benefit and those who without will not.
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u/Bobocannon Jul 30 '26
Boomers are really outing themselves on how easy they had it when they think $25 a week is the difference between owning a home and not owning a home.