Housing Shortage Forces Millions of Adults to Live With Parents

kabayiri

J_i_m wrote: »

It's all about personal choice. I don't see why some people feel the need to sneer at other people's choices or why some seem to think that they are better than others for moving out earlier.

I'm now in my 30's and I live with a parent. I had moved out in my mid 20's and rented but personal circumstances and finances motivated me to move back again. I wasn't "forced" too, but I made the choice as it represented the best way for me to save money towards a deposit on a property of my own.

In other threads we are often accused as a society for not looking after our parents. Well, this is one answer to that dilemma.

As our society becomes ever more multi-cultural the concept of multiple generations living together will become more commonplace.

There will be some on here who have of course a more old fashioned view because of the generation they come from.

KnightSmile

ukcarper wrote: »

40 years ago prices were just under 5x average wage compared to 6x now.

What did you need to buy a house in 1971?

Mortgage inflation has far outstripped wage inflation in the past 40 years. Average salaries were around £2,000 a year in 1971, with the average house selling for £5,632: in essence, less than three times earnings. The average asking price for a home rose to £238,874 in May this year, according to Rightmove, while the average salary sits at about £25,000.

The above (a snippet from an article written in 2011) would appear to back my original point, in 1971 you would need to borrow less than 3 times your earnings. Today you would need to borrow 10 times.

If people from the older generation still believe they would be able to afford their first property whilst starting out in their career, well they are quite frankly deluded.

ukcarper

KnightSmile wrote: »

What did you need to buy a house in 1971?

Mortgage inflation has far outstripped wage inflation in the past 40 years. Average salaries were around £2,000 a year in 1971, with the average house selling for £5,632: in essence, less than three times earnings. The average asking price for a home rose to £238,874 in May this year, according to Rightmove, while the average salary sits at about £25,000.

The above (a snippet from an article written in 2011) would appear to back my original point, in 1971 you would need to borrow less than 3 times your earnings. Today you would need to borrow 10 times.

If people from the older generation still believe they would be able to afford their first property whilst starting out in their career, well they are quite frankly deluded.

Average wages were a lot less than £2000 in 1971 I don't know where you got that figure in 1973 house prices were just under 5x male average wage compared to 6x now. Prices have gone up and down look a nation wide website. Prices increased rapidly in the early 70s.

You ignore the fact that interest rates were higher and you could not borrow as much in relation to your earnings.

There are many reasons why you people are buying later high prices being one but not the only one.

HAMISH_MCTAVISH

Better build a few million houses then.

As current prices are caused by the shortage of housing.

Prices can and will rise until enough people are priced out, forced to share, live at home, etc, that supply and demand reach equilibrium.

HAMISH_MCTAVISH

ukcarper wrote: »

Average wages were a lot less than £2000 in 1971 I don't know where you got that figure in 1973 house prices were just under 5x male average wage compared to 6x now. Prices have gone up and down look a nation wide website. Prices increased rapidly in the early 70s.

You ignore the fact that interest rates were higher and you could not borrow as much in relation to your earnings.

There are many reasons why you people are buying later high prices being one but not the only one.

Very true.....

Percy1983

Bantex wrote: »

Have to say that I would have been a bit embarrased at 30 if a met someone and had to say I was still living with my parents. Must be a bit restrictive.

This is going with the assumption that being 30 and living with parents would make you the odd one out, if you ask the average 30 year old they don't see a problem with it.

When I met the women I would eventually marry I was living with my parents, guess what she was also living with her parents.

I will say there is 2 reasons not to leave home, the first being the mummy's boy/girl who doesn't want to leave, I would guess this is a small percentage but it seems many on here thing this is the only group.

The second group is where the relationship has moved on to a adult to adult relationship where people live together and everybody benefits. This is the group I fell into, those who don't believe this group say you are leeching from your parents (in my case my parents had more money as I gave them more than it cost to keep me), you live by your mums rules (in my case we lived by normal rules of respect for the people you are living with, ie not playing music at full blast at 3 in the morning wasn't because mum said no but because I had more respect than that, likewise I wouldn't do that now in my own house out of respect for my wife/neighbours).

I suppose those who can't understand how a parent/child can actually have an adult/adult relationship must never of had that themselves to which I can fully understand why the moved out at 16 etc, but is it really hard to believe people can live together and all benefit?

KnightSmile

The average house today is more expensive than x6 average salary (£25000) which would equate to £150000. To compare with 1971 that would be £75,000 or your example of 1973 would give today's youth £125,000. This wouldn't secure you very much today particularly in London and South East.

Basically the generation in the 1970's didn't achieve home ownership because they are 'better' or worked harder than today's generation.

It was simply more affordable to buy a property than it is today. This generation is not struggling because of a vast excess in the purchase of obscene amounts of iPads/iPhones, which some seem to point towards.

CLAPTON

keep it simple :


let's talk about sex


years ago people left home to have sex with their 'partner'


today there is no such requirement


boomers invented sex so have no problem with their offspring inviting their partners home and have sex.


so many more your people stay at home and have no need to move out until they can buy a property.

PasturesNew

KnightSmile wrote: »

Average salaries were around £2,000 a year in 1971, with the average house selling for £5,632

My dad, aged 40, bought in 1970. He was typical of his era in that he got a job and then went to evening classes to pass through a series of studies/examinations, over 3-4 years, gaining promotions at work, until he had the title of Manager in the electronics industry, with some letters after his name for those studies.

In 1970 he was earning £1200/year and bought a dated 3-bed semi for £4,600 with a deposit of £1000.

princeofpounds

Prices increased rapidly in the early 70s.

The 70s is a rather dodgy time to be doing any analysis.

There was a little thing called the Energy crisis which prompted anomalous levels of inflation, which was then followed by anomalous levels of wage inflation.

The whole thing was over within a matter of 5 years, and either side of the crisis the house price to wages ratio was far, far lower than it has been for the last 15 years.

It is quite funny how in the memory this seems to dominate many people's recollections of 'how tough it was', although it is far from representative of the average situation over the full period.