I just purchased my first home because I could finally afford it after a few lucky cash windfalls. I spent the last 5 years in a 700 sq ft apartment.
What I learned: I would have been much better off buying a worse home 5 years ago that was at least better than the 700 sq ft apartment.
I don’t think saving up that down payment makes as much sense any more. I felt like I was chasing a target which was moving faster than I was.
That's far beyond the rate of inflation. Unless there are significant improvements to the house or the surrounding area, the value of house should not rise faster than inflation, at least not by some significant margin.
What does "should" even mean here?
It is ridiculous for a home owner to expect the value of their home to rise faster than inflation by a significant margin without there being massive improvements to either the home itself or the neighborhood.
And skyrocketing housing prices means the rich get richer while utterly fucking over the young generation and locking them out of home ownership as prices rise significantly faster than wages.
So, you know, ridiculous.
It also seems to be finally hitting a wall post COVID.