[refurb]

Why does success mean being able to afford a home in one of the most expensive real estate markets in North America?

If I were to say "I'm not successful because I only make $200K and can't afford a home in Manhattan", people would laugh in my face.

[ABCLAW]

I think we're radically changing the goal posts of success if a wide swath of educated, hard working young professionals can't afford to lay down roots in the cities they grew up in because of the current absurd asset bubble's effect on home prices.

Additionally, your example is kinda silly. on an income of $200k, you can afford a high end luxury apartment with approximately half of your income - as a bachelor.

[refurb]

I don't disagree that real estate is inflated due to cheap money, but I would challenge the idea that just because you were born in a city you have the right to expect to be able to own a home there.

As for the $200K comment, I meant own a home, not rent an apartment.

[antisthenes]

No, but if you work in a city, you should be able to afford a home there. And that's increasingly not the case anymore.

Are you saying extreme length commutes should be the norm?

[refurb]

They already are in NYC, but thankfully the train and subway alleviate that somewhat.

The interesting thing is that people are willing to put up with commutes that long. Or, they just suck it up and move their family into a one-bedroom.

Point is, if people aren't willing to do it, it won't ever change.

[ABCLAW]

200k annual income is enough to service the mortgage on a luxury apartment on Manhattan proper without straining the budget too much. This is about owning, not renting.

If you meant 'detached house' by home that's another thing entirely.

[wan23]

Though getting the money for a down payment is a bigger problem. It takes a while to save up the $250K down + closing costs (let's not forget that 1% mansion tax) on a $1.2M one bedroom apartment.

[malvosenior]

I think you have it backwards. It’s not that there is an asset bubble, it’s that labor is feeling the effects of globalization. The lifestyle that people in the US have come to expect (urban home ownership for instance) was a historical anomaly based on the United States unique position as the leading super power post two world wars that decimated the rest of the globe but pre labor globalization.

The reality is most people will never attain the 20th century consumer lifestyle and I think a lot of people would argue that’s a good thing.