Democrats & Liberals Archives

Homeownership: What's the New Normal?

Unless you’ve been living under a rock, it’s hard to argue with the fact that the housing market has changed quite a bit in the last 20 years. From gentrification to the Great Recession and the bursting of the housing bubble, the world of homeownership in the U.S. has certainly had its fair share of ups and downs in recent years. The question is, with all of the flux what does the new face of homeownership look like to the majority of Americans trying to make ends meet in this crazy new world?

To Rent or to Own? That Is the Question

Many modern millennials are struggling with a choice that has become much more of a wash than it once was: Should they try to rent or own the house they live in? On one hand, renting provides a scenario with more flexibility and an overall decrease in responsibilities. For instance, many of the typical housing concerns and even regular maintenance can simply be passed off to a landlord.

On the other hand, buying a house -- if you can afford it -- still remains an excellent way to build up some equity and not just dump your rent money into a black hole with no return. It also allows a homeowner to do as they wish with their property, rather than being restricted by the rules of the actual owner.

But at the end of the day, can a modern individual, much less a growing family, afford to own or even rent their living space in this economic climate?

The Costs of Life

While figuring out where you're going to dwell is an obviously critical factor of living, it can't take up every waking minute of your time. Life is too busy. And we're not talking about time spent lounging on the sofa binge-watching Netflix. There are countless other concerns and responsibilities facing the modern American apart from figuring out how to pay the mortgage. Millennials, in particular, are facing quite the uphill battle before they even begin to consider the gargantuan commitment of purchasing a house.

For example, education costs alone have become an astronomical factor that must continue to be accounted for years and years after a person graduates. College Data reported that the average price of an academic year at a public institution from 2017-2018 averaged over $25,000 with the price tag for a private university coming in at roughly double that. That is a per year statistic during an era when even a four-year bachelor's degree may not be enough to find employment.

In the modern era healthcare costs have become another expenditure that has skyrocketed at a shocking pace, with premiums, deductibles, and monthly payments spinning out of control and the number of uninsured yet again on the rise. In this case, the problem can be even more devious than simply siphoning away the available funds for housing, too. Unpaid medical bills eventually affect things like credit scores which, in turn, can directly impact the ability to get a mortgage. And yet, one can't expect health to be cast to the wayside in the pursuit of homeownership.

These kinds of issues don't only have the potential to hold back millennials from being able to scrape together enough cash for a down payment on a house. They can also stop them from even having a clean enough credit history to financially function in general. The consequences of these numerous fiscal struggles are literally serving to stall out an entire generation from getting its footing in the world, driving many millennials to opt for "third-party options" like living with their parents for extended periods of time or even co-owning a house with other families in order to ease the financial burden.

An Urban Problem? Hardly

The struggle to be able to afford housing has historically been an urban issue. It has generally been the case in the past that city dwellers tend to feel the lack of space or the gentrification of neighborhoods, along with the consequent price increases they typically entail, more keenly than those living in the more sprawling countryside.

But research has shown that there are actually many rural areas where the cost of housing is just as much of a crisis as in urban as well as suburban areas. Not only that, but many of the issues facing the rural crowd are the same as their city counterparts. This simply goes to show that the crisis is a national conundrum and not just one affecting certain demographics, even if some specific, geographic areas do seem to be harder hit than others at times.

Navigating the Future

No one is immune from the effects that the modern housing market is having on the current American landscape. From struggling with the decision to rent or own to finding ways around the problem by cohabitating with another family or remaining with your parents, the housing future is shaping up to be a vastly different beast from the more stable, conventional options of the past.

Posted by Magnolia at February 1, 2019 10:47 AM
Comment #437609

Finding a home or housing is especially difficult in certain places like California, and some large cities, like New York City.
Perhaps people should consider moving to states with better economies.

Houses in most states cost about one-third (or less) of what they cost in California.

People should probably rent until they are serious about building equity, and paying less interest to the bank, and that cannot happen by only making the scheduled payment on a 30 year loan. That is, they should not buy too much house, they should try to save up a large down-payment, and they should double the periodic payments (cutting the total interest by about 67%, or better, and reducing the loan from 30 years to about 10.83 years, or less). Think of it as paying yourself, instead of the bank.

For example, a $200K loan at 4.0% for a 30 year loan will have a $954.84 per monthly payment, and total interest over 30 years will be $143,735.87 .

And, a $200K loan at 4.0% for a 30 year loan (but paid in 10.83 years) will have a $954.84 per monthly payment, and an additional $954.84 per month (specifically, on the principal), and total interest over only 10.83 years will be $46,925.17 (67.4% less; a savings of $96,810.70).

All home buyers should understand the following, and track the bank’s calculations, because the banks make mistakes sometimes.

COMPOUND INTEREST LOAN (Annual Percentage Rate):
Payment = Principal * ( I * (1.0 * I)^n) / ((1.0+I)^n -1.0)
n = total number of payments
I = (%Interest_Rate) / (100.0 * (PaymentsPerYear))
PeriodsPerYear = 12
APR = Annual Percentage Rate = Periodic_Rate * Periods Per Year
APY= Annual Percentage Yield = ((1 + Periodic Rate)^(Periods)) - 1

Here’s a Microsoft Excel template calculator.

Posted by: d.a.n at February 1, 2019 2:34 PM
Comment #437630


Payment = Principal * ( I * (1.0 + I)^n) / ((1.0+I)^n -1.0)

Here’s a Microsoft Excel template calculator.

Posted by: d.a.n at February 2, 2019 2:22 AM
Comment #437632

Have you ever watched Tiny House Nation?

Perhaps downsizing is an option?
Especially for young people without a large family.

Posted by: d.a.n at February 2, 2019 2:26 AM
Comment #437668

Property should be considered an heirloom, not a commodity.

Posted by: Weary Willie at February 3, 2019 2:40 PM
Comment #437739

A huge part of the problem today is that younger people are too quick to get deep into debt, they want to buy more than they can afford to pay off quickly (i.e. a 30 year loan is a trap in which the total interest on the loan over 30 years can be VERY costly), and they still have nearly ZERO equity after 10 years. That’s crazy. Just because everyone else does that (or, many people), doesn’t mean it is a good thing to do. IF you already have a 30 year loan, it can be paid off in about 1/3 of the time by doubling the payments.

Again, here is a Microsoft Excel spreadsheet (loan calculator) that can be educational in seeing how much difference extra payments can make in the total interest on the loan.

Posted by: d.a.n at February 6, 2019 12:29 AM
Comment #437982

Watch Kadenang Ginto February 7 2019 Replay has been Released. Todays Episode Kadenang Ginto February 7 2019 English Subtitle Pinoy Flix Tv Shows.

Posted by: pinoyflixtv at February 13, 2019 1:30 AM
Comment #438748

Google Search Console
Thank you for submitting a webspam report for as SPAM and/or p*ornography.

Posted by: d.a.n at February 25, 2019 9:48 PM
Comment #438763

Very Nice Information

Posted by: Sandeep at February 26, 2019 4:09 AM
Comment #438947

Google Report webspam
Thank you for submitting a webspam report for
Google investigates webspam reports, reducing the webpage’s rank in Google search results, and takes action when Google uncovers abuse. In egregious cases, Google removes web pages from their search index.

Posted by: d.a.n at February 28, 2019 10:05 AM
Comment #438987

Promo Cashback di Situs Poker Online Terbaik Dan Terpercaya Afapoker. Semua jenis permainan judi online yang ada pada situs ini dijamin aman dan berjalan fairpaly tanpa kecurangan sedikitpun. Salah satu situs judi online terpercaya ini adalah Afapoker. Permainan dijamin berjalan secara natural dan juga aman tanpa adanya bot. Daftarkan diri anda dan login Afapoker Sekarang Juga! Dan nikmati Promo-promo besar Lainnya!

Posted by: UmakKane at February 28, 2019 11:02 PM
Comment #438989

Segera daftarkan diri anda untuk bergabung dengan kami permainan poker online terbaik dan terpercaya se-Asia. Salah satunya situs poker online terpercaya adalah Pokerace . Banyak promo-promo menarik yang selalu menunggu anda dan para pencinta poker online Asia. Masih kurang puas dengan promonya? Tenang saja, kami sebagai agen poker resmi menyediakan layanan live chat 24 jam nonstop untuk membantu anda apabila mengalami kesulitan dalam bermain game poker online kami. Jadi tunggu apa lagi? Buruan Daftar Sekarang Juga hanya di link alternatif Pokerace terbaru!

Posted by: KipaIlakes at February 28, 2019 11:06 PM
Comment #438991

Banyak pilihan situs poker online yang menawarkan Promo menarik dan salah satunya adalah Pokerclub88. Juga ada banyak bonus yang siap menunggu anda, salah satunya Bonus Angpao Berlipat Special Imlek 2019 yang berhadiah 2 ASUS Vivobook, 13 HP VIVO V11, Tiket Undihan Jutaan Rupiah dan masih banyak lagi yang lainnya. Kesempatan emas hanya datang sekali, Daftar di situs alternatif Pokerclub88 2019 dan mainkan semua permainan poker terbaik se-Asia ini dan menangkan hadiah Juataan Rupiah!

Posted by: MboisLop at February 28, 2019 11:08 PM
Comment #438992

Poker online adalah salah satu permainan yang mudah dimenangkan apabila sudah mengetahui cara bermain yang baik dan juga strategi yang tepat. Mainkan game terbaru dan login Pokerrepublik terbaru 2019 sekarang, rasakan sensasi bermain SUPER10 dan raih kemenangan Jutaan Rupiah! Jadi ayo daftar Sekarang juga di Pokerrepublik dan jangan sampai ketinggalan Promo-promo menarik seperti Kejutan Angpao Berlimpah Imlek 2019 dan berhadiah 13 HP VIVO V, 2 ACER SWIFT3, dan Tiket Undian berhadah Jutaan Rupiah. Gak bakal nyesel deh kalo bermain di Pokerrepublik!

Posted by: KaditAsaib at February 28, 2019 11:10 PM
Comment #439136

Best health tips.

12 reasons why you should eat flax seed/Alsi daily

Posted by: piyush narayan at March 3, 2019 1:10 PM
Comment #439289

hey great content i like your article also read my post

Posted by: rahul kumar at March 6, 2019 3:35 AM
Comment #439332


Posted by: Sajjad Ali at March 6, 2019 10:32 AM
Comment #439426

Zaroorat rishta for female ǀǀ Zaroorat rishta in pakistan ǀǀZaroorat rishta for second marriage

Posted by: Sajjad Ali at March 8, 2019 1:58 AM
Comment #439921

That is the nice trick certainly towards some of those having their first go typically the blogosphere. Temporary and yet especially appropriate advice! Nowadays follow-up kitchen remodeling staten island Thanks a lot for the purpose of showing gas 4 free. Vital read through put up!

Posted by: kitchen remodeling staten island at March 16, 2019 8:33 AM
Comment #440089

Thanks for this valuable information.

Homemade Beauty

Posted by: Health & beauty tips at March 18, 2019 8:48 AM
Comment #440198

Smartphone pliable

Posted by: Smartphone pliable at March 19, 2019 6:17 PM
Comment #440241

Let’s see how they like some of their own medicine ?
Google Webspam Reported
Thank you for submitting a webspam report for
Thank you for submitting a webspam report for
Thank you for submitting a webspam report for
Thank you for submitting a webspam report for
Thank you for submitting a webspam report for
Google investigates webspam reports, reducing the ranking of the spam webpage in Google search results, takes action when Google uncovers abuse, and in egregious cases, Google removes spam web pages from Google search results.

Posted by: d.a.n at March 20, 2019 12:17 PM
Comment #440292


Posted by: d.a.n at March 21, 2019 6:54 AM
Comment #440344

Achat smartphone pliable huawei

Posted by: Achat smartphone pliable huawei at March 22, 2019 12:41 PM
Comment #440455

very interesting , good job and thanks for sharing such a good blog.

Posted by: Custom Packaging Boxes UK at March 24, 2019 12:45 PM
Comment #440611

Let’s see how Achat smartphone and Custom Packaging like some of their own medicine ?
This webspammer just now received 1000 times more spam back in their contact forms, blogs, twitter, facebook, chat, and email accounts, and they were also reported via Google Webspam Report site
Thank you for submitting a webspam report for
Thank you for submitting a webspam report for
Google investigates webspam reports, reducing the ranking of the spam webpage in Google search results, takes action when Google uncovers abuse, and in egregious cases, Google removes spam web pages from Google search results.

Posted by: d.a.n at March 26, 2019 5:31 PM
Comment #441072

Nice Post Thanks for sharing Top 5 Free Most Popular Email Providers

Posted by: Top 5 Free Most Popular Email Providers at April 3, 2019 9:17 AM
Comment #441528

Nice Post Thanks for sharing read this How to Download Tik Tok Videos Without Watermark

Posted by: How to Download Tik Tok Videos Without Watermark at April 14, 2019 1:45 AM
Comment #441663

Posted by: the boss at April 16, 2019 8:56 PM
Post a comment