Needs or wants in the affordability argument

"When young people struggle to buy a home and start a family, we shouldn’t be surprised to see a loosening attachment to heteronormativity." The American Conservative, June 2023 article about wokeness. 

Just because both the right and the left constantly preach this same affordability myth doesn't make it fact.

I did what the mythmakers should have done. I looked up housing prices and inflation. We bought our first home in 1962 for $14,000 at 6% interest. To call it a fixer upper would be a joke. A gravel driveway, no garage, and a dirt floor basement on a street zoned for business in a racially mixed neighborhood. Based on inflation figures, that would buy a house for $155,500 today. And I found several by checking the real estate ads. In that county one can find a slightly run down 3 bedroom, 1 bath ranch in need of a strong 24 year old with a wife and baby, very little money and some home repair skills learned in high school. I'll leave out the part where he hired a young ex-con as part time help who left after one day.

Along with inflation since 1962 there have been a number of generous government programs to add to a low wage job which makes that home very affordable (and btw virtually no adult works at federal or state minimum--realistically entry at McDonald's is about $16/hour with benefits). What today's young homebuyer would have to give up today would be the same things we didn't have--college loan payments, eating out, travel, nice clothes, multiple tech toys, phones, TVs, and leisure activities.

It's not that a house today isn't affordable. It's the lifestyle, and that's something we choose. Get out of New York City or DC or Seattle or LA and there are plenty of places to live and jobs with opportunity. 325,000,000 of us manage to live outside those money pits (Co-pilot figured it out for me).

Memories of remodeling

 
I've enjoyed the Facebook photos of Keith Fernandes, a friend of our children, spending his vacation remodeling his bathroom. The work clothes and the exhausted look brought back the memories of our first home in Champaign, IL. Sometimes I say "we" remodeled it, however I don't saw, hammer, plumb or sweat because I watched my mother do that and swore I'd never do it. Bob did it all. One night (1962) there was a trip to the ER because something fell on his head. Then there was a truck borrowed from a construction site to haul away debris thrown out a 2nd floor window and the ex-con he hired to help with the heavy wall board and studs. Bob made the mistake of paying him in cash the first day and he didn't come back the second day. This was all done to make it into a working duplex. We lived downstairs and rented the upstairs. It is the only way to make money buying a house--rent it to someone else. When we bought a second house in a nicer area of town we rented out both units and that paid the mortgages on both houses. Years later after we'd sold it on land contract and moved to Columbus, a bank error was found and we were returned some money.

The Sandlot, fun movie for families

Last night at Lakeside the free movie was "The Sandlot," made in 1993 about the summer of 1962 and a young boy making new friends in a new neighborhood after his mother remarries. The clip I show (which won't load) has the main character standing in the background, unsure, inept and wanting new friends. The boys become good friends, make mistakes, take risks, and act goofy. A great movie for adults and kids to watch together and discuss. It's a feel good, no violence, with nothing we'd call bad language in this day and age.

I was reading a review, and saw a comment by a "victim." A woman complained that she watched it as a kid and was offended and threatened by the slur, "You throw like a girl." Oh lady, get over it. We've watched incredible female softball champs practice right here in our neighborhood, but this kid definitely threw a ball the way I did when I was 13 (even worse now). Such whiners! I hope the movie doesn't get pulled because some hyper feminist who never grew up got offended over a funny line.

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If I were younger

I'd buy a house. The bargains right now are fabulous compared to 3 or 4 years ago when buyers were bidding up the seller's price. And 20 years ago? My goodness! We got a mortgage at 10.5% and were happy to get it. We checked at our local bank this week about some property we plan to sell, and the rates for either conventional or FHA were 5.75%. That's lower than we paid in 1962 when we bought our first home, a duplex in Champaign, Illinois. We were in the bottom quintile, the down payment was a gift from my father, he took the 2nd mortgage so we paid on two mortgages (renters paid one), and we lived on the first floor and rented the second floor. Being a landlord is a huge hassle, particularly when you are 22 years old, but that rent put us where we are today. When we sold the house on land contract upon moving to Columbus in 1967, the mortgage payment also covered our car loan. Then it turned out the bank had made an error in calculating the principle, so we got a little unexpected cash bonus when the new owner finally paid it off. Young people today have many more options, but they complain more and are less willing to sacrifice. (My parents thought the same of us because they were young adults during the Great Depression.) One option that we didn't have, which was a blessing, was that banks would not consider a wife's income in figuring what you could pay. So many people have lived to the max the last 30 years that when the economy "hits a rough patch" as it will do in cycles, they have no resources.



By the time this photo was taken, the house had been painted charcoal grey, my husband had installed a separate door for the tenants, put a wall between the stairs and our apartment, and built a wall through the upstairs kitchen to create a small second bedroom. He also remodeled our kitchen, divided our dining room so we would have two bedrooms, and built a linen closet in the bathroom. He was quite handy with a limited set of tools. The basement had a dirt floor, so on damp days it could be creepy with crawly things. There was no garage, and although that looks like grass, I think it was mainly weeds. That's my mother's car on the gravel driveway from the brick street, but eventually we bought that too.

What are you waiting for? Here's some bargains I saw in today's paper: In Chicago, on north Astor you can get a Gold Coast penthouse with 10' ceilings, living room, dining room, 4 bedrooms and 2.5 baths for $1,150,000. Fabulous location. If I could choose anyplace in the world to live (and had my children near by) it would be Chicago.

In West Virginia there are some bargain homesites at New River Gorge for $60,000. The only interesting property I saw in Ohio in the WSJ was an auction for 2-3 acres near Hinkley (isn't that where the buzzards fly to?) with wooded, scenic ravines. But there are great properties all over central Ohio.