Power Map: Millennials kept out of the housing market

Millennials kept out of housing market
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Welcome to Power Maps from Tag The Flag where we zoom out to provide unique insights about our country and the world. These graphical representations are meant to help us make sense of our surroundings and visualize themes, trends, and topics in our borders and beyond.


🗺️ POWER MAP


Background: In 1975, it would take nine years to save up a 20% down payment for a median home in the U.S., by putting away 5% of a median income earner’s gross earnings, according to real estate financing firm Unison. Today, in cities like San Francisco, you’d need to save for 40 years. In LA, it would take 43 years. (See below for the rest of the list).

Why this matters: if you’re a 30-year-old in LA with median income you can imagine buying a home at 73. Meanwhile, older people who bought under much more favorable circumstances have seen their equity stakes grow and grow and grow.

The Big Picture: Skyrocketing home prices, a dearth of new housing and policies that favor existing homeowners have locked many younger Americans out of the market. – The Atlantic

Credit: The Atlantic