Entitled millennials or out of control inflation in the housing market? You be the judge.
Samuel and Laura Graves both earn six figure sums, but say the housing market has left them with no choice but to raise their two kids in an apartment, according to Yahoo Finance and Business Insider.
The couple is in their mid 30's and lives in Portland, Oregon. They've been looking for a house for three years.
Laura told Business Insider: "We refuse to become 'house-poor' and, like many others, are choosing to sit it out until the housing market is reasonable again."
With a combined income of $250,000, they aim to keep their mortgage payment between $3,000 and $3,500—about 30% of their $11,000 monthly income, the report says.
However, rising home prices and mortgage rates have pushed most homes they like to a $5,000 monthly mortgage, nearly half their income. Instead of exceeding their budget, they’ve opted to wait, paying $2,700 a month for a two-bedroom apartment and storage, hoping the market improves.
The report says rising home prices and high mortgage rates have made homeownership increasingly unaffordable. And, although the Federal Reserve may cut interest rates, this could drive more buyers into the market, potentially raising prices further and keeping housing supply tight.
The couple, living in Wilsonville, a suburb of Portland, faces steep home prices—$642,000 on average. One home they liked was listed at $635,000, with an estimated $5,000 monthly mortgage payment, consuming 43% of their income. Though aware that other parts of the U.S. offer cheaper housing, they are hesitant to move again, according to the report.
Previously, they lived in Spokane, Washington, where they paid $2,200 a month for their home. But after six years, they missed their jobs in Portland. In 2021, Laura’s old boss offered to double her salary, prompting them to sell their Spokane home and return to Portland.
"We actually tried uprooting the kids to a more affordable town and found ourselves less happy in the end," Laura concluded.
"Our children have begun talking about how they want a house so badly and their own rooms. We'll never get these years back. By the time we buy, we won't even need room for a play set."
