| by Kenneth Chase | 100 comments

Real Reason Why You Will Never Be Able to Buy a House

This episode is brought to you by Dashlane. Try Dashlane Premium free for 30 days at www.dashlane.com/infographics
and never forget another password and keep all your online accounts secure! Home sweet home. Whether you dream of owning a cabin in the
woods, a bungalow on the beach, a condo in the historic downtown district or a ranch
style house in suburbia, everyone wants somewhere nice to live. However recently, there’s been a lot of
talk in the media about how the average American worker, especially the younger generations,
have been priced out of the US housing market and will never be able to afford a median
priced home. Is this true? We are by no means financial or real estate
experts, but let’s discuss some reasons why you may never be able to buy a house. A report released in September 2019 from a
property data firm analyzed 498 counties across the US. They came to the conclusion that in 371 of
those counties or 74% of them, average wage earners could not afford to buy a median-priced
home as of the third quarter of the year. The number of unaffordable counties has risen
6% from 6 months ago when their previous report showed that 71% of housing markets were exorbitant
for average workers. This report assumed that a potential homeowner
is putting down 3% when they purchase the property–which is a fairly low down payment,
much lower than the traditional 20% down payment wanted by most private lenders. Affordability was calculated by determining
the amount of income needed to make monthly mortgage payments, property taxes and insurance
premiums. The final total was compared to the average
weekly wage data from the Bureau of Labor Statistics. There were only 127 counties out of the 498
counties where a worker earning an average salary could afford to make the housing payments
for a median-priced home in their area. Metro areas that were considered affordable
by the analysis included Houston, Detroit and Philadelphia. Furthermore, the report discusses how home
prices are rising and will continue to rise for the foreseeable future. Granted, a report from a single company may
not tell the entire story, but a variety of surveys across the board paint a similar picture,
it’s become difficult for the average American worker to afford to purchase a house, even
when purchasing as a two income family. The housing market is prohibitive for several
different reasons. Firstly, in general around the country and
especially in popular metro areas, there are a lack of homes for sale. Older generations are choosing to hang on
to their current homes and age in place. When mortgages rates were lower, many homeowners
took advantage and refinanced their loans, so currently if they chose to move, they would
end up paying more for the same mortgage, on top of paying more for a move-up home. Even sellers who want to downsize are currently
moving into a pricier market. While consumer confidence is currently high,
many Americans feel anxious and uncertain about the future, so they are less likely
to make huge lifestyle changes such as selling a house and moving unless they have to. During the housing bust of the late 2000’s,
big commercial property companies began buying thousands of homes out of foreclosure. In many markets, these homes were not flipped
and resold, but have been entered into the rental market. Both long term and vacation rental demands
have been strong for the past several years, creating solid investment opportunities while
low interest rates have made other investments less appealing to investors. Also, in recent years there has been technology
created that facilitates buying homes online. As a result, investors have continued to pour
more funds in purchasing properties. Even in 2018, big private-equity firms, real-estate
speculators and others that buy properties comprised more than 11% of U.S. home purchasers. Central to this discussion is the fact that
investors purchased one in five homes in the bottom third of the price range of the national
housing market in 2018. Those starter and fixer upper smaller homes
are exactly the types of properties in first buyers price range. Furthermore, after the recession in the late
2000’s, home-building activity was slow to rebound. When new homes were built, builders mostly
concentrated in the most expensive tier of the market for single-family homes. All of this adds up to mean that that there
are simply fewer houses on the market and prices can be driven up by buyers bidding
on homes. Young families looking to purchase a starter
home, may be competing against other first time buyers as well as a company or house
flippers. That means in hot markets, there are often
bidding wars over homes. Sellers may have several buyers to pick from
and may even opt for a purchaser who can meet their specific demands such as paying in cash
instead of a traditional mortgage. Aside from the dearth of homes, especially
starter homes for sale, achieving homeownership is hard because wages are not keeping pace
with the appreciation in home cost. A study in the spring of 2019 looked at the
salary needed to own a home in the 15 largest cities in the US. They used 5 metrics: home value, down payment,
property tax rate, homeowners insurance and other monthly debt payments to model the salary
needed to afford home payments. Per their study, San Francisco was the most
expensive city to purchase property in with a median home value of $1,104,100. Assuming that you could put down a 20% down
payment and wouldn’t want to take on a lot of debt, the salary to afford payments for
such a house in San Francisco is an annual household income of $172,153. Per the US Census Bureau, the U.S. median
household income for 2018 was $61,937. The median income for California was slightly
higher at $75,277. A study this past spring calculated the median
income in San Francisco as approximately $96,265 for households and $74,841 for individuals. That’s still over $70,000 shy of the needed
annual income to afford a median home in San Francisco. Roughly 29.5% of US households, or 37,665,335
households made $100,000 or a six-figure income in 2018. Only the top 10% of US households made $178,793.00
or more in 2018. Admittedly, the housing market in San Francisco
is an extreme example. It’s astronomical, fueled by limited property
supply and a relatively small percentage of well paid workers at tech companies. However, variations of the same scenario where
average worker wages fall significantly short of average home payments cost is repeated
in many areas through the rest of the US. The salary needed to afford housing payments
is just the tip of the iceberg. The study looking at salary needed to own
a home in the 15 largest cities in the US assumed a high credit score, a 20% down payment
and what the personal obligations a potential purchaser might have such as student loan
debt were moderate. Often, it’s hard for a first time buyer
to stockpile 20% of the house cost for a downpayment. However first time purchasers have several
ways of getting around having to pay this large lump sum. Some private lenders will accept a much lower
down payment if the purchaser gets private mortgage insurance or PMI, which basically
allows the lender to recoup their loss if the purchaser defaults on their loan. However, PMI can be a significant cost, ranging
as high as 1% of buyer’s total loan value per month. For example, a 1% PMI on a $200,000 mortgage
would cost a buyer $200 per month, which can add up over the years. Mortgages from government-backed lenders,
such as an FHA loan, don’t charge PMI. However, they do still charge separate mortgage
insurance. First time purchasers can also opt for low
down payment mortgages through groups they belong to such as VA loans, which are backed
by the Department of Veterans Affairs, and USDA loans, which are backed by the Department
of Agriculture. Both can offer 0% down payment options for
borrowers who qualify. There are also FHA loans which are backed
by the Federal Housing Administration and allow down payments as low as 3.5%. However, in March of 2019 the FHA tightened
its rules for insuring higher-risk mortgages. After a surge of mortgages made to purchasers
which lowered the average credit scores for borrowing purchasers to 670, the FHA became
concerned that backing higher-risk loans could potentially lead to defaults, depleting cash
reserves the federal agency uses to insure mortgages. As a result the FHA reintroduced the manual
underwriting requirements it removed in 2016, so that mortgage applicants with weaker credit
scores and higher debt burdens will get closer scrutiny. While the rule will only affect between 40,000
to 50,000 borrowers a year, it is likely to heavily apply to first time buyers. Some first time buyers also take out conventional
loans to meet 20% down payment costs. However to do so you must have good credit. So assuming you have good credit, including
a low debt to credit ratio–yes that does include student loans, have an annual household
income well over 6 figures, can come up with a 20% down payment for your desired house
and potentially outbid other purchasers, you can purchase a house in many locations in
America. Why all the media attention or fuss over why
average American workers can’t purchase a home? Maybe the idea of owning a home doesn’t
appeal to you. You have plans to live overseas, live a minimalist,
non material lifestyle, ect. That’s great, no one is saying that you
must purchase a home to be considered an adult or a productive member of society. However, to many people owning a home is a
life goal, an important tenet of the American Dream, and vital for long-term economic security. Whether home ownership is a personal goal
for you or not, you should be aware of the factors affecting the housing market. This is part of a much larger conversation
about income inequality, corporate greed, generational expectations, student loan debt
and even where America’s future financial stability lies. No matter why you made the decision to never
own a home, or more likely had the decision made for you, there is one smart life decision
that you can definitely make for yourself that will make a big difference, and that’s
deciding to protect yourself online. And the best way to do that? With Dashlane! Dashlane keeps your personal information and
digital accounts safe and secure with services like their Dark Web monitoring that immediately
notifies you if it finds any of your personal information for sale on an online marketplace,
the kind of thing that can really end up wrecking your credit and hurting your chances of buying
a house even further. So don’t be like millions of victims every
day, get Dashlane to keep your digital life secure and your odds of getting a house as
high as possible. Head on over to www.dashlane.com/infographics
for a free 30 day trial, and if you use the coupon code ‘infographics’ you can get
10% off a premium subscription today! Do you have plans to purchase a house? How were you able to make it work? Tell us your secrets in the comments! Now go watch our other video the “Most Expensive
Things in the World!” Thanks for watching, and, as always, don’t
forget to like, share, and subscribe. See you next time!


mehpare firat

Jan 1, 2020, 2:51 pm Reply

i have a house


Jan 1, 2020, 3:43 pm Reply

Rolls eyes Not everyone is American, Infographics Show. Quit it with the clickbait titles

Casual Tryhard

Jan 1, 2020, 3:44 pm Reply

Atlanta and millennial. I own two houses. Outside of the heavy populated areas like San Fran and New York. Homes are quite affordable. If you have a online job, I highly suggest moving to more rural areas.


Jan 1, 2020, 4:45 pm Reply

Cries in Australian


Jan 1, 2020, 6:23 pm Reply

Me seeing this video while sitting in my new house: oof

Tony Anderson

Jan 1, 2020, 7:13 pm Reply

Every employer in New Orleans- we can only pay you $18,000 a year for working here…
Housing market in New Orleans-rent is $1500 a month(and up)
To purchase a house it will be $500,000….
See the problem?

Tom Lawrence

Jan 1, 2020, 7:58 pm Reply

Get a trade skill job and move to a cheaper area can get a decent house for cheap price. None of the people I know are rich yet I know 3 people that bought a house before 25 and 1 by 27.

Jacob Projansky

Jan 1, 2020, 8:21 pm Reply

Chelsea baker

Dylan Keller

Jan 1, 2020, 10:34 pm Reply

It's because of the Democrats and their taxes

Levi Ram

Jan 1, 2020, 11:03 pm Reply

Ha i bought a house

bob bobberson

Jan 1, 2020, 11:19 pm Reply

Move to a different better country. Bask in the smug glow of owning home mortgage free. 🤭

Jacob Hutchinson

Jan 1, 2020, 11:22 pm Reply

Thank you for telling the truth about home investors, cash buyers, and flippers. They reduce supply for people that actually want to live in a home they own, and drive up prices on what's left. Everyone always wants to blame homebuilders, but not may journalists acknowledge the fact that investors hurt real buyers.


Jan 1, 2020, 12:29 am Reply

To buy me a House

Dylan Keller

Jan 1, 2020, 12:34 am Reply

If you live in the country you BUY land and BUILD your own house.


Jan 1, 2020, 12:43 am Reply

We need to protest to lower house cost

Kliche travels

Jan 1, 2020, 12:46 am Reply

Who needs a home that you don't really own when you can learn how to to build a tiny house which costs waaaaaaaaay less than a traditional house


Jan 1, 2020, 1:36 am Reply

Ight bet. Just save your money man


Jan 1, 2020, 2:40 am Reply

That's not the problem!!!

Umer The Clumsy Tube

Jan 1, 2020, 12:15 pm Reply

Me living in a house I bought:


Jan 1, 2020, 1:03 pm Reply

I am under 30 and I own 2 houses lol

Joshua Keefe

Jan 1, 2020, 1:24 pm Reply

You can still buy a house today it’s absolutely possible depends on how bad you want it I’m currently working 80 hours a week between two jobs so I can do it kind a bit done yes it’s a difficult yes. Another thing that is stopping people or slows down from buying houses because they’re using debt like nobody’s business and they’re choosing to go into student loans with a whole bunch of other debt payments all the time it’s hard to make a house payment on top of that.


Jan 1, 2020, 2:55 pm Reply

Wow too bad somebody moved into a big house last year in my neighborhood with a mosquito shield and netted back porch

Maizy Alspaugh

Jan 1, 2020, 3:04 pm Reply

Don’t worry the boomers will start dying in the next few years

Gaming Hacks

Jan 1, 2020, 5:51 pm Reply

It's those dang boomers

Shwattz Fredrick

Jan 1, 2020, 6:48 pm Reply

As of 2020 housing act no future purchases will be made on houses, "buying a house is thus Illegal and "NEVER" should be attempted for threat of life imprisonment." (According to the thumbnail anyways)

Purple Nurp

Jan 1, 2020, 8:53 pm Reply

this is why i like it when the housing bubble bursts

Jonathan Abgrall

Jan 1, 2020, 8:57 pm Reply

Boomers will die off sooner or later then we might finally have a chance. If Chinese and South Africans investor haven't bought the whole country by then.


Jan 1, 2020, 1:18 am Reply

7:43 What is a "HOME LONE"?

Alex H

Jan 1, 2020, 2:05 am Reply

Detroit has no jobs don't move there you will NEVER be able to escape it! Michigan is jobless!!!

Alex H

Jan 1, 2020, 2:06 am Reply

This makes sence for some reason.

Shade X BigBoi

Jan 1, 2020, 2:39 am Reply

I mean we built our house in North carolina and the whole cost was like 115k

Heavenjot Singh

Jan 1, 2020, 4:50 am Reply

No I think it’s cos I don’t have dashlane

Slavic Hans

Jan 1, 2020, 8:31 am Reply

Tfw im not american


Jan 1, 2020, 8:34 am Reply

Still better than communism


Jan 1, 2020, 8:57 am Reply

Oof managed to buy my first home when I was 26, I got it just before the market started surging upwards and underbid and won by about 20k, I’ve made hundreds of thousands in equity in the last few years, no new homes are being built in my city instead big companies are purchasing blocks of homes to tear down for “luxury” apartments and condos… Ridiculous.

Mārtiņš Dmitrijevs

Jan 1, 2020, 10:26 am Reply

laughs in eastern european

Jesse Reinert

Jan 1, 2020, 12:29 pm Reply

It’s because America’s a business.

Ryan Vining

Jan 1, 2020, 3:37 pm Reply

Step 1: Get some Dave Ramsey in your life. Step 2: no need, you're already on your way to success

Jony H.

Jan 1, 2020, 6:35 pm Reply

I feel attacked wha-

Veloz Veloz

Jan 1, 2020, 6:44 pm Reply

Excuses is all I read my mom came as an immigrant and is a home owner. You have the will to accomplish anything if you didn't don't blame anything but your self.

Diego Medina

Jan 1, 2020, 6:52 pm Reply

I bought one & I’m 23 🙂

General_Strive Games

Jan 1, 2020, 7:38 pm Reply

Mr. Beast has entered the chat


Jan 1, 2020, 8:46 pm Reply

You can thanks baby boomers for this.


Jan 1, 2020, 12:23 am Reply

Go ahead and show me my bucket list once again, Inforgraphics Show! Passive income is the key to success in the US.


Jan 1, 2020, 4:01 am Reply

Well that only hurts the nation. Soon it will no longer be at the top. Greed killed the Roman empire USA seems to be following that path.

Danny Carroll

Jan 1, 2020, 5:43 am Reply

It's really not hard to buy a house these days I'm only 19 and I bought a house a few months ago you just have to know how to play the credit scores and do your research on the houses in your area

bingo bango

Jan 1, 2020, 6:40 am Reply

We just bought the house we have been renting for 12 years…



Jan 1, 2020, 6:51 am Reply

I Will just spend all my money on stonks and hope I am lucky

Daniel Montes

Jan 1, 2020, 8:01 am Reply

Infographics: The real reason why you will never be able to buy a house.

Me: That’s why I live in a 240 square foot TTTH. (Travel trailer toy hauler). It was the only way to get out of the rent race after 30+ years of renting.

Five year loan while slowly work on repairs, upgrades and remodels as I can afford them. First two priorities: stop the water from getting in where it shouldn’t and upgrade the insulation…while living in it…with another person…a dog …and 4 cats…

Chiara Cactus

Jan 1, 2020, 12:40 pm Reply

Wow wanted to move to America to buy a house.😩😥☹


Jan 1, 2020, 1:34 pm Reply

Thanks I have depression now


Jan 1, 2020, 1:42 pm Reply

I make 157k/yr.
I can pay off a 400k home in under 7 years.

I study on holidays, vacations, weekends, and even after work days most of the time.


Jan 1, 2020, 2:02 pm Reply

The cost of housing has increased because of dual income families bidding up the price.


Jan 1, 2020, 2:09 pm Reply

Never be able to buy a house!
U.S house prices are big!

Me laughs as a British girl who’s parents 3 bedroom house cost half a million GBP


Jan 1, 2020, 2:40 pm Reply

Buy foreclosed homes that's the key. Also don't live in Cali or NY.

Sloth7 Sloth8

Jan 1, 2020, 3:40 pm Reply

You can buy a house if you dont buy an iPhone every month


Jan 1, 2020, 5:48 pm Reply

Nope, paid off my house in 5 yrs, at the cost of back to back deployments, not seeing my family for 2 yrs and a hint of PTSD. There, that wasn’t so bad.

dante ungas

Jan 1, 2020, 7:20 pm Reply

Me: "Has a house"

They said it couldn't t done.

G Man

Jan 1, 2020, 10:52 pm Reply

You do t buy a house with money. You buy it with credit so work o your credit and you'll get a loan


Jan 1, 2020, 11:21 pm Reply

Are you sure dashlane is trusted?

Harry Styles

Jan 1, 2020, 11:24 pm Reply

I just bought a new house today smh.


Jan 1, 2020, 1:11 am Reply

Because today's economy makes everything cost more than you can ever make 🙂

Cole Krumrey

Jan 1, 2020, 2:07 am Reply

Most people: But I have to buy a home! It's not like I can just rent an apartment! I want to settle down, start a family.

Me: laughs in asexual

Kiman Rasa

Jan 1, 2020, 2:36 am Reply

If nobody can afford the properties, then who's buying? If it's only investors that buy to rent out, there's still a market that can afford to pay a high enough rent that it makes sense for said investors. 🤷‍♂️

Clayton Talesfore

Jan 1, 2020, 2:38 am Reply

But I just bought a house…

Ahmmed Al-aibi

Jan 1, 2020, 2:46 am Reply

I live in British Colombia where u have to sell your soul to the devil to buy a house

Your Colors6

Jan 1, 2020, 2:57 am Reply

Time to move to Ireland

orian cunningham

Jan 1, 2020, 3:59 am Reply

TIL: dont move to a major metropolitan area and expect to get a cheap home. Gotcha.


Jan 1, 2020, 4:19 am Reply

Move to Iowa

Matt S

Jan 1, 2020, 4:38 am Reply

I hate to be one that thinks this complex issue is caused by a simple problem, but, it really seems like most of the financial problems we face today were caused by too many middlemen. Everyone wants to make a buck, I get that. It just seems like people are getting carried away. We are all aiming to squeeze every penny we can find and it feels like that greed is driving us into the dirt fast.

Pancake Dave

Jan 1, 2020, 5:34 am Reply

I saw the title and was like aight let’s see where he’s going with this

Everything Dad

Jan 1, 2020, 5:39 am Reply

Pretty poor research. 498 counties out of thousands possible. Come on research team you can do better than that. Try a larger sample size then see how the results change.


Jan 1, 2020, 7:26 am Reply

No one noticed 1% PMI on a $200,000 property is actually $2,000/month not $200/month? That's on top of every other bill someone might have

Gaming Star

Jan 1, 2020, 8:22 am Reply

Did the math if I don’t get married and have a joint bank by 30 i will only be able to get a house at 46


Jan 1, 2020, 1:35 pm Reply

well jokes on you cuz i dont even live in America

Jozhua Mendoza

Jan 1, 2020, 2:06 pm Reply

Time to get a tiny house then?

Oh wait, there are regulations prohibiting people to live in them in cities.


Jan 1, 2020, 5:53 pm Reply

I think that the real reason has nothing to do with the actual price of housing. Yes, the cost of houses has gone up and is on the rise, but I think it has more to do with the younger generations inability to budget themselves and invest their money in compound interest accounts. I worked a minimum wage job as soon as I got out of high school, and budgeted strictly, had I kept doing what I was doing (while also investing my money) I would have been able to afford a home in about 9 years. I understand that seems like a long time, but honestly it's not, especially relative to buying a house. Had I been able to stay with my parents, it would have taken even less time. Had I been dedicated and taken side jobs and odd jobs at the same time, even less. I think the problem is just that people don't want to do the work anymore, or it just "takes too long" and they want it "within a reasonable time frame" but reasonable is relative. A free market economy is a game, learn to play it. Our society teaches you very well how to wake up at a certain time, follow specific instructions, and complete tasks without complaining, if you want to escape the trap then you have to do something different. Think of something creative, or, alternatively if you're not the creative type, just brute Force your way through it. Opportunity is everywhere.

D Libby

Jan 1, 2020, 5:59 pm Reply

Exact same as the UK.


Jan 1, 2020, 7:06 pm Reply

I bought a house 3 years ago..


Jan 1, 2020, 7:13 pm Reply

Title: you will NEVER be able to buy a house
In the actual video: you MAY never be able to buy a house
Nice clickbait…

Kim Jong Un

Jan 1, 2020, 8:01 pm Reply

Let me nuke San Francisco and house prices will fall


Jan 1, 2020, 9:07 pm Reply

19 i put down 20% 190,000 home

Davey Raymond Games And Other Stuff

Jan 1, 2020, 10:58 pm Reply

Dumb People Reading: Why We Never Buy A House
Me: Oh. ⚠⚠⚠

Clayton Woolfe

Jan 1, 2020, 1:01 am Reply

Or make sacrifices to get what you want. You don’t need a new car, you don’t need a massive wardrobe, you don’t need expensive vacations. I bought my house at 26 a 4/3 2600+sqft. Didn’t go to College no fancy degrees. Just hard work


Jan 1, 2020, 1:06 am Reply

Thanos wants to know your location

ITZ Bryan

Jan 1, 2020, 4:07 am Reply

See title.

Me : apartments aren't that bad

dylan ouimette

Jan 1, 2020, 5:35 am Reply

I'm 23 no college degree and am on Pace to pay my house off in 16 years… Looking to by a duplex or flip house in the next 2 years

Jen Klen

Jan 1, 2020, 8:19 pm Reply

Welp I guess I’m not moving to San Fran for a long while! 😬😂

Jerry G

Jan 1, 2020, 7:58 pm Reply

Well, surprise! I actually bought 2.

Menma Madrigal

Jan 1, 2020, 1:09 am Reply

Me: pays down payment(30, 000) for 4 bedroom house, gets parents to help me pay off mortgage as much as possible using house equity, rents out rooms 250 a week, pay only 250 a month on mortgage plus 500 dollars property tax and insurance a month, pay off remaining mortgage while raising equity: profit repeat until you are a millionaire.

Not: I am 29 years old, its not that people have no money its just that people don’t have monetary support, the key is having the first house to cause the jumpstart and to quickly pay off mortgage as quickly as possible, do remember don’t get loans you know you can’t pay, keep your promises and contracts


Jan 1, 2020, 2:45 am Reply

I had a house. It’s not that hard to buy. It just takes strategy. I lived in a neighboring county to where i worked, and i bought during slump in market. I’ve had to sell because my family situation changed.


Jan 1, 2020, 4:50 pm Reply

Just join the military and they’ll basically pay for most of your home

Gamer Kent

Jan 1, 2020, 3:48 pm Reply

Me: Sees Title

Also Me: So Do You Want Me To Turn A Homeless?

FlyLike Jordan

Jan 1, 2020, 1:41 pm Reply

what bout tiny homes?

Omar Hyder

Jan 1, 2020, 4:27 am Reply

What if I'm not American


Jan 1, 2020, 5:49 pm Reply

The cost of living has not increased more than inflation. Just don’t live in a big city.

Jared Brown

Jan 1, 2020, 8:13 pm Reply

you need to chill with your ads, not watching anymore.

Andre Landry

Jan 1, 2020, 8:33 pm Reply

What bout canada ?

Mr Yeet

Jan 1, 2020, 7:22 am Reply


Ruth Beaty

Jan 1, 2020, 6:23 pm Reply

So, most housing markets are not in the biggest cities in the US, as most of the jobs are not.There are smaller cities, with well-paying jobs, and reasonable housing costs.

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