Kids living at home

[Andre1969]

Wasn't Harry Truman the reason former presidents get a pension nowadays?

If anything though, he apparently lived fairly modestly. His last car was a 1972 Chrysler Newport. He sprung for the power windows, at least. And Bess was still driving it in 1982.

According to Wikipedia, Truman's peak net worth was $6.6M, in 2022-adjusted dollars. So, while on the low end of former presidents, seems like he was doing okay, if not exactly rolling in it.

 

[Texas Proud]

And yet, economics now are very different than 50 years ago when I went off to college. So, I’m not so sure parents should be blamed when global economics are making it difficult for kids to reach escape velocity.

But are they really? And.... I said 25, back 50 years ago we were expected to move out around 18 to 21...

As an example of economics... I bought my first car as a junior in HS for about $5,000 in today's money... it was 10 years old with about 80K miles... I see a LOT of used cars you can get that are less than that but usually with more miles... but they have a lot more features...

My shared rent for my first apt was about $2800 in today's money... you can get your own place for that around here for half that...

Just checked... bought my first house when the market was WAY down for $200K in today's money... you can buy a house in that neighborhood for $270K today... since mine was a fire sale that is about the same... PLUS, I got the great gvmt subsidized interest rate of 13%...

I will agree that getting a college education has skyrocketed, but I think expectations of what is necessary has gone up a lot...

Oh, decided to check... my first salary out of college was $65K in today's money... that is about what most can expect... from search:
The average starting salary for college graduates in 2024 is approximately
$65,677 per year

 

[Cassius King]

I think there are many different things at play. Any young person between the ages of 18-27 could learn a trade, plumbing, welding, etc and make close to $100k/year shortly.
Some of this is a result of decisions made and an unwillingness to adapt.

 

[Qs Laptop]

Here's some simple math guidelines in case anyone still thinks a person with a salary of $65K today can buy a decent house.

A general rule of thumb is a person can afford house that is 3X to 4X their annual household income. It's just a fact of life that unless you have a large down payment, i.e. greater than 15% to 20% of the purchase price the mortgage company is going to limit your mortgage amount.

Think back on when you bought your first house with practically no money down. I think you will find it fits into this 3X income metric.

So let's say the average 22-25 year old makes $65K to $70K per year. That means they will qualify for a mortgage to buy a house in the $195K to $210K range. Even stretching it to 4X their income puts them at a $260K to $280K house.

Now go online--Refin.com, Realtor.com, Zillow.com--and look for a $200K house and tell me what you find.

 

[Cassius King]

Your argument is for an individual buying. I rented until my wife and I could afford a house. Your example above would then need to double the income and the cost of the house. Plenty of $400k houses.

 

[latexman]

But are they really?

DW and I rented a 2 BR house on 1/2 acre during college for $60/month.

Using 4.5X for 1979 to 2026. $270/month won’t pay for what we had.

Working summers (2 jobs), I paid for my state university. I did have a $500/year scholarship. Thank you, Alcoa. No loans. No $’s from Mom and Dad.

With no debt after college, and that was key, DW and I bought our first house (3 BR, 2BA, 1800 sf, $76k) after renting two years and having good jobs after college at age 24.

None of our 5 kids came close to that, and most of the 5 were hard working.

That’s my experience that it’s much harder for kids to launch these days.

 

[Andre1969]

On the car front...my 31 year old friend that I mentioned a bit ago, who's just now moving out. His first car was a 2011 Kia Sportage. Bought it in 2021, with about 80,000 miles on it. It was about $11,000.

When I was a teen in the 80's, a 10 year old car with 80,000 miles on it was something you passed down to your kids, or a relative who had fallen on hard times. Or something that you paid maybe $1-2K for...although that could be $3-6K today.

Cars aged quicker in those days though and it didn't take long for a car, even a well-maintained one, to look "old". For instance, when the '86 Taurus came out...compare it to anything made in 1976. But now, compare a 2026 car to a typical 2016. Very little in the way of styling advancement. Basically, over the decades, cars have gotten longer, lower, wider, shorter, taller, boxier, squared-off, wedge-shaped, rounded-off, and so on. Just about everything that can be done, style-wise, HAS been done.

So, not that we've gone through cash for clunkers, Covid, and the fact that some automakers don't dump mass quantities into rental fleets like they used to, cars do hold their value better.

 

[old medic]

Now go online--Refin.com, Realtor.com, Zillow.com--and look for a $200K house and tell me what you find.

Zillow has our for $190K

 

[old medic]

Oh, decided to check... my first salary

Our 1st brand new car, Mercury Topaz 1988... today $26,250
Our 1st Home (Repo singlewide trailer on rented lot) 1990.... today $42000
Our New House doublewide modular 1996 Today... $135000

 

[Spock]

Here's some simple math guidelines in case anyone still thinks a person with a salary of $65K today can buy a decent house.

A general rule of thumb is a person can afford house that is 3X to 4X their annual household income. It's just a fact of life that unless you have a large down payment, i.e. greater than 15% to 20% of the purchase price the mortgage company is going to limit your mortgage amount.

Think back on when you bought your first house with practically no money down. I think you will find it fits into this 3X income metric.

So let's say the average 22-25 year old makes $65K to $70K per year. That means they will qualify for a mortgage to buy a house in the $195K to $210K range. Even stretching it to 4X their income puts them at a $260K to $280K house.

Now go online--Refin.com, Realtor.com, Zillow.com--and look for a $200K house and tell me what you find.

We sold 4 SFRs last summer.
EVERY buyer was FHA loan with seller paying closing costs and very low % down. One buyer was in some special gov program where they were able to take out an additional loan to cover their down payment and closing costs. Their loan almost got tanked at the last minute because buyers had a $300 automatic payment that billed to their credit card.
All where 1100-1300sqft, 3BR, 2BA in decent neighborhoods that had been renting for $1000-1500. Two in a LCOL area sold below 180K. Two in the higher COL city went for 280s.

It can be done.

 

[Qs Laptop]

Your argument is for an individual buying. I rented until my wife and I could afford a house. Your example above would then need to double the income and the cost of the house. Plenty of $400k houses.

You are correct. But the OP's scenario was not for two people, and two incomes.

 

[Chris7]

We have let our kids stay as long as they were in school or gainfully employed. My parents helped us get into our first use with a gift. We didn't have extra funds so let them live with us and save. We are now empty nesters, but plan on moving to be close to a few of our kids and if any wanted to move back and pay rent, we would let them.

When my parents got approached 70, household things became much harder for them and we didn't live close. So hopefully, ours will be and we will be able to help each other out.

My wife and I had to grew up quick and were on our own early in life. We have enjoyed having our kids around.

cd : O)

 

[HarveyS]

In Connecticut.
Plenty more out there. I chose this because it is about a mile from first house. Only this is much nicer, about 10% larger, has a paved driveway, and mostly already updated.

 

[Sorcerer]

I think I'd keep my nose out of my co-worker's family business. You've obviously created a perfect family culture for you, your spouse and your kids. So, celebrate that and leave your co-worker and his family alone. Everyone will be happier!

That's a good idea. If everyone was good with money and retired early, that would be terrible for the economy. Won't happen again.

 

[Qs Laptop]

In Connecticut.
Plenty more out there. I chose this because it is about a mile from first house. Only this is much nicer, about 10% larger, has a paved driveway, and mostly already updated.

Yes, if someone aged 18-29 makes about $90K to $100K they could buy this house. Remember though, the average income of people in this age group was said to be $65K so that 24 year old living in the basement of his parent's house could not buy the house you are showing. Now add in student debt and he really can't afford it.

 

[Sorcerer]

Wife and I rented for 10 years in the surrounding DC area. Back then, crappy homes were about $400k. We knew we wanted to leave the area and move back near family, so we never purchased.


Purchased a home for $250k where we grew up. Sits on 15 acres, although we later bought 15 more that joined our property.

Could we have purchased anything for $250k in DC...probably not. Again, location, location, location. Plenty of nice homes around the US for sub $200k. What planet are you guys living on? Get out of your bubble.

 

[Aerides]

Yes plenty of nice 200k homes where your career caps out at 75k if you are lucky.

If someone wants to be a higher earner with access to good schools those same homes are in locations that command 700k or more.

 

[Mr. Tightwad]

23yo daughter still lives with me and I'm fine with it if she never leaves.

She made 90K last year. Has over 400K in Fidelity. Graduated from college at 18 with a business degree.

Some kids are irresponsible and you have to implement measures to turn them into responsible adults.

Others are self starters and don't require encouragement.

 

[Pointby2]

Plenty of nice homes around the US for sub $200k. What planet are you guys living on? Get out of your bubble.

I was going to make a point of how easy it is to find a nice home for $200K. I went to my old home town of Eau Claire, Wisconsin. College town, cold Wisconsin winters, a place most would consider LCOL, and the kind of location people typically shun.

There were 2-3 homes, old, small and in need of work that I could find for around $200K. These would be OK starter homes if you don't mind a small town. If you go up another $100K, then you can find some nice houses.

 

[Dtail]

How many youngins work in the summer, before starting their first full time job?

 

[Mr. Tightwad]

How many youngins work in the summer, before starting their first full time job?

My kid had 4 at one time, for a minute.

 

[badatmath]

The biggest thing in my mind is that both parents are in agreement with the kids being home. I'm reminded of my friend with 2 at home (one was about 28 with a retail job paid for his own car and toys but no rent, other was 24 no job no transportation and no goals). Neither helped with any chores even when said friend got cancer he was the one out mowing the yard. His wife thought it fine - he did not. He passed so I assume the kids are still with mom if she could even afford the house (doubtful, never worked, wasn't into budgets and he didn't leave her with more than a small pension). But it caused the parents a lot of strife even though neither kid was "bad".

 

[Aerides]

How many youngins work in the summer, before starting their first full time job?

Plenty. Ask any GenZ they probably have two or three gigs going.

 

[NanoSour]

From what I'm seeing, many of these live at home young adults suffer from some sort of mental struggle. Whether it's anxiety, depression, aspergers, or somewhere on the Autism spectrum. We have friends who adopted 3 separate babies some 20 years ago. They created what from the outside is a perfect little family during the formative years (0-12). Oldest is addicted to drugs has lived on the street since 14. Been in and out of rehab a dozen times with no luck. The youngest graduated from a special needs high school last year and got fired from his first job out of HS working in a grocery store. He's a wonderful human, but just couldn't work at the pace they needed. Just started as a dishwasher at a cafe and we pray he does well there. We see this situation all too often in this world we've created.

 

[Sorcerer]

From what I'm seeing, many of these live at home young adults suffer from some sort of mental struggle. Whether it's anxiety, depression, aspergers, or somewhere on the Autism spectrum. We have friends who adopted 3 separate babies some 20 years ago. They created what from the outside is a perfect little family during the formative years (0-12). Oldest is addicted to drugs has lived on the street since 14. Been in and out of rehab a dozen times with no luck. The youngest graduated from a special needs high school last year and got fired from his first job out of HS working in a grocery store. He's a wonderful human, but just couldn't work at the pace they needed. Just started as a dishwasher at a cafe and we pray he does well there. We see this situation all too often in this world we've created.

We have a family member who has an off kid. He will be living with his parents forever. I know of one other one who is losing his vision. He's probably nearly blind by now. He is also living at home. Makes sense in both scenarios.

Who doesn't have some sort of anxiety or depression? It would be extremely rare to find anyone who doesn't have some sort of issue, including everyone on this forum and myself. Sometimes kids need tough love. Sometimes you have to suck it up and deal with what life throws you.