![]() And now she uses that business to help other young Americans understand that “sometimes the mathematically correct financial decision is not the decision that you actually should make.”įor Dunlap, there are some “luxuries” to renting that are taken away with the hassles of homeownership. Importantly, Dunlap thinks she may not have built her financial education platform, “Her First $100K” in the same way had she bought that condo. Read more: Thanks to Jeff Bezos, you can now use $100 to cash in on prime real estate - without the headache of being a landlord. “I was not in the place of my life … I was 22, I wanted to be in a city, I wanted to hang out with my friends, I wanted to do things, I didn't want to hang at home on the weekends.” “I was not emotionally ready to be a homeowner,” she says, now aged 29. She put an offer in but backed out at the eleventh hour - a move she now describes as “one of the best decisions I’ve ever made.” The only property she could afford at the time was a small condo, located an hour outside of Seattle and a good distance away from her friends. This was attributed to higher home prices and opportunities for more flexibility and smart investing.įor Dunlap's part, her career took off in her early twenties, to the extent that her “well-intentioned parents” encouraged her to buy property at the age of 22, because they thought “renting is throwing money down the drain.” Rich people who rentĪccording to a 2023 RentCafe report that used the latest Census data, the portion of renters earning more than $150,000 ballooned by 82% from 2015 to 2020 - the most significant increase among all income groups during that period. These dynamics are posing serious financial challenges for young Americans - even for those who technically earn enough money to buy their first home. “It's just really challenging to figure out what to do when you have somebody who's telling you: 'Oh, you need to buy,' but at the same time, you're like: 'I don't know how I could possibly be able to do that,'” says Dunlap. On average, apartments across the country are slightly cheaper now than they were one year ago, but the median rent is still around $250 per month more expensive than it was just three years ago. The nationwide median rent currently sits at $1,353 per month, according to November rental market data from Apartment List. The WSJ worked out that someone taking out a new 30-year mortgage on a $430,000 home, with a 10% down payment, would have to pay $3,200 every month - a shocking 60% more than if they’d bought the exact same house three years ago.Īpartment rents have only gone up by 22% over the same period. That is almost $40,000 more than what the typical household earns. On top of those extortionate borrowing costs, house prices are so high today that prospective buyers need an annual income of almost $115,000 just to afford a median-priced U.S. In October, the average rate on a 30-year fixed mortgage hit 8% for the first time in nearly two decades. Is it cheaper to rent?Ĭlimbing mortgage rates are blocking young Americans from getting on the housing ladder. She says it’s “difficult to stomach” spending hundreds of thousands of dollars on “so little house." Here's why the number of rich, young American renters is growing. The founder of the financial education platform “Her First $100K” and high-earning renter is based in Seattle - where the median home price was a cool $829,000 in September, according to data. “Look at any major city, look at the stagnating minimum wage, look at the housing costs going up and also rent going up - it's not easy to live anywhere right now,” Tori Dunlap told Moneywise. ‘Difficult to stomach’: Rich young Americans are ditching the dream of homeownership as mortgage rates and housing costs hit new highs - here’s why more of them are choosing to rent ![]()
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