Most of you probably know the memes about homes not being affordable to younger generations. It is true, that they are, at least, less affordable as illustrated by Figure 4-1. The reasons for that however aren’t evil Landlords, who want to leech as much as possible. It is more a combination of several factors:
Years of Bad Politics™️ has led to too few houses being built and now there is a shortage. As any highschooler, after paying attention in economics for 30min, can tell you: low supply + high demand = bad for consumers
Following that, most young people want to live in big cities, preferably the few biggest ones. That puts additional strain on these local markets.
Another big contributor to this problem is that Homeowners want to keep the value of their homes up. Anyone wants their assets to rise in value. But since they are the ones who vote in local elections, they vote to keep houses expensive. That means weird zoning, no new Homes etc.
In defense of renting
Renting apartments or even Houses is a good concept. I pay some entity to keep my housing repaired, up to code etc. As a consequence I don’t risk most of my net-worth being deleted by a storm or similar. Renting is more expensive than owning on average, but renters have none of the risk that owning implies.
I personally like fixing and modifying stuff. That includes Computers furniture and Houses. However I also know a lot of people who don’t. They don’t trust themselves to drill a hole in a wall. For those people shifting the responsibility of fixing smaller things to a landlord can be beneficial.
It also frees people up to move around, when their job/life requires it.
Solutions
Build more houses.
Its that simple. Cities need to rezone and remove houses in favor of multi-family buildings or even skyscrapers. Houses in a city make no sense. You want to be in a city to have a lot of people in a small area. Why would you spread out everyone in suburban wastelands.
If you want a house yourself, go to rural areas. I know you nerds are spending your entire social life on the Internet. It’s probably way cheaper to get a fiber connection into the middle of nowhere than paying for city houses. “Mimimi, but there are no queer communities” Then start one. Imagine how powerful all you queer furries will be if you take your tech jobs remote and save like 70% of your housing expenses. Just don’t spend the extra cash on more porn.
I know that when I’m done with my degrees I’ll be building my lair where no ethics boards will find me. My machines will be efficient and my fungi growing fast.
If I have convinced you to embrace the hermit life, come join me. I am always in need of more minions.
Oh, my sweet summer child. You vastly underestimate the obstacles to rural internet.
Fiber isn’t even close to an option. You might be able to get DSL, if you pay thousands of dollars for them to lay the line yourself. Being restricted to ~128kbps or dial-up is a very real possibility, even in 2024.
The bright side is, if you have one cell provider with good reception (and it will be only one of them that actually works out there), you can tether to a dedicated LTE hotspot for a pretty decent modern-speed connection. But say goodbye to watching Twitch streams live or playing any kind of high-performance low-ping game.
$10,000 connection fee plus $3/ft for the line last time I tried getting fibre into a rural area. They also wanted a 5 year commitment. 🤮
Still cheaper than the million you saved by not buying in a city tho XD