Photo by JC Rodriguez/For The Washington Post
This article is from “Let’s Talk Numbers” by JC Rodriguez, a personal finance coach. Rodriguez is one of The Washington Post’s Featured Voices, a co-production with independent creators.
What if you could buy a home for $24,000? Or even $13,000?
For some Baby Boomers, those were the actual prices of their first homes. For younger generations navigating today’s housing market, those numbers might sound almost unbelievable.
I asked Americans across generations how much they paid for their homes and what they’ve learned about homeownership along the way.
Laura Wyant, 71, bought her first home in West Virginia for $24,000 when she was just 18. Another couple, married for 61 years, paid $13,000 for their first home in New York.
Compare that with Millennials Alayna Renwick and Jordan Renwick, who spent $830,000 on their latest home, making a 20 percent down payment. For the couple, who have three children, homeownership is about more than just an investment. It’s about stability, security and building something they can pass down to their kids.
So why does buying a home feel so much harder today?
While mortgage rates were often above 7 percent throughout the 1970s, 1980s and 1990s, the relationship between home prices and household incomes has changed dramatically.
In 1990, median home prices were no more than three times median household incomes in 75 of the country’s 100 largest housing markets, according to research from Harvard University’s Joint Center for Housing Studies. Today, higher home prices relative to incomes have made homeownership increasingly difficult for many Americans.
But even in today’s market, younger buyers are finding ways to make it work.
Austin Baker, a Gen Z homeowner, purchased a $360,000 townhome with a down payment of roughly 10 percent. He now rents out a room to help cover his $2,500 monthly mortgage payment, with the goal of paying off his loan early.
These conversations raise an important question: How do you know when you’re financially ready to buy a home?
While common guidelines like the 28/36 rule and the 30 percent rule can help buyers determine what they can afford, they don't account for everyone's financial circumstances or long-term goals.
Ultimately, buying a home shouldn't be about trying to time the market or borrowing the maximum amount a lender will approve. It's about looking beyond the price tag, understanding the full costs of homeownership and deciding when buying makes sense for your finances and your life.
Watch the full episode of “Let’s Talk Numbers” to hear what homeowners across generations paid for their properties and learn how to determine what you can realistically afford.
This story is part of Verified, a newsletter that is published by Washington Post Creator, a team outside The Washington Post’s newsroom that is focused on the creator economy and content partnerships with independent creators. Learn more about Washington Post Creator.
