Millennial says parents paid $60K for house now worth $800K but claims it’s all about ‘hard work’ – meanwhile she needs to hit jackpot for down payment

Benzinga and Yahoo Finance LLC may earn commissions or revenue on certain items through the links below.

His parents bought their home in 1980 for $60,000. It is now worth $800,000. When she brings up the impossibility of buying anything remotely comparable, they tell her to “save more” or “stop wasting money.” This is advice that doesn’t make sense if you assume nothing has changed – and if you look at a mortgage calculator this century.

He posted the question on Reddit’s r/NoStupidQuestions: “Why do so many older people insist that buying a home is just ‘hard work,’ when they bought their home decades ago with a modest income?” She wasn’t looking for pity or a fight—she wanted help finding a way to explain the breakup without sounding ungrateful.

One commenter broke it down with math. Their parents bought a house for $27,500—about two years’ worth of income at the time. “Granted, interest rates were 12% to 14%,” they wrote, “but they still paid off in 12 years or so.” In other words, even high rates did not deter regular people from buying and owning homes. Not fast. But rationally.

Another noted that keeping the same affordability ratio today would require $300,000 in income. Someone else replied, “Two years of gross income for a house? That leaves me speechless.”

One self-described boomer responded with rare clarity: “They can only see what works for them. They can’t understand why it doesn’t work for you.” He signed off, “My mind is made up, don’t confuse me with facts.”

Other users pointed out the mismatch between what the struggle looked like then and now. “Older people see young people with nice smartphones, looking sharp and trendy, carrying takeout coffee,” said one, “and they think we’re spending our down payment on fun.” But the phone got cheaper. Did not do accommodation.

At one point, the average American home cost about 2.5 times the typical annual income. In 1985, for example, the median home price was about $82,800, while the median household income was closer to $33,600. Fast forward to today, and that ratio has tripled. An average home now costs around $420,000, while the average household income is less than $59,000 – that’s close to 7.3 times. In large metros, the ratio is often more than 10 times. There is no difference. That is the gap. And the number of canceled streaming subscriptions isn’t going to top it.