alt Hacker NewsI can’t grasp the math. How are young people buying homes? Is the average income now over $100k?
Or are they taking out mortgages they can never pay off, meaning they are almost renting not on a path to actually buying or owning and most of their payments are interest.
If that’s the case they are renting a leveraged financial position.
Previous generations could own homes. As in pay them off.
The interest is fixed in a typical mortgage, so just as long as you reliably pay the mortgage payments, you will own the home eventually when the term is complete.
Owners only really get screwed if their home value goes down and they need to sell for some reason.
Prices are usually going up (at least on a long enough time frame), so most owners make out pretty well when selling even with little home equity.