The Price of Real Estate
Census data speaks volumes about the uphill battle millennials face in achieving homeownership dreams. The numbers tell a tale of soaring home prices and stagnant wages, creating an increasingly challenging landscape.
Over the years, home prices have surged by a staggering 118% since 1965. Meanwhile, wages have grown a mere 15% during the same period. This stark contrast paints a vivid picture of the affordability crisis we're grappling with.
The math is clear: To afford a home in today's market, millennials need an annual income of $144,192. This figure is double the median household income. The disparity is glaring, and it's no wonder why homeownership seems like an elusive goal for many.
For those without this substantial income, the journey becomes longer and more arduous. Saving becomes an enduring struggle, and the path to becoming a homeowner extends far into the future.
The challenges are even more pronounced for first-time homebuyers. Without the advantage of capitalizing on soaring property prices and building equity, they face an additional hurdle on their path to building wealth.
Helping first time homebuyers plan and save is one of the many personal finance issues we work on here at Axis Capital. If you are interested in learning more, schedule a time to talk.
