After Saving for 7 Years, The Only Home This Couple Could Afford Was A Dilapidated Shack, Despite Making $120,000 a Year

Older generations often underestimate younger generations and assume they are disconnected from reality. 

But one person is defending the recent trend of “quiet quitting” among young people and shedding light on why he believes that “careers are dead.” 

For those who may not be familiar with the term, “quiet quitting” refers to a situation where employees, without making it obvious or quitting their job, decide to do only the bare minimum required of them at work.

In a TikTok video that quickly went viral, Average Joe (@averagejoegam3) shares his uphill battle with the housing market. He reveals that he and his wife have been together for seven years and have faced countless struggles. After enduring hardships and making sacrifices, they have finally reached a point where they are no longer living paycheck to paycheck. 

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Despite their efforts, saving $40,000 for a downpayment, paying off their cars and good credit scores, they can only afford a dilapidated shack that could pass for a setting in a horror movie. Average Joe raises questions about whether older generations faced similar challenges in the past. He wonders whether becoming a doctor, lawyer, architect or engineer was the only way to afford a decent home.

Because housing affordability varies from one city to another, it’s important to note that the video does not specify Average Joe's location. An income of $120,000 in Anniston, Alabama, might offer different housing options compared to Los Angeles, California.

Average Joe points out that his parents had it easier. He mentions that his mother worked at Michaels Stores Inc. and his father worked at a printing press, yet they were able to purchase a home that would now cost $600,000. These were minimum-wage jobs that allowed them to become homeowners at the age of 23.

To provide some context, in 1993, the average home price in the United States was around $126,500, according to GOBankingRates. Meanwhile, the median household income that year was $31,241, according to the U.S. Census Bureau. This meant that a 20% down payment on a home would amount to approximately $25,300 in 1993.

Thirty years later, the average home price in the United States is about $388,800, according to the National Association of Realtors. Meanwhile, the median household income hovers around $71,000, according to the Census Bureau. This means that a 20% down payment would amount to $75,140, surpassing the annual household income. In 1993, a down payment represented a more manageable 78% of the household income. 

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Commenters on the video argue that the trend of quiet quitting arises from the frustration of being paid the bare minimum while struggling to afford basic necessities. Their underlying belief is that if young Americans work hard and still cannot afford a home, then something needs to change.

Younger generations are increasingly seeking positions that offer higher pay, better benefits and potentially more affordable locations.

Addressing this issue is no easy task.

The solution partially lies in constructing more affordable housing, which necessitates reducing regulatory barriers at the national, state and local levels, as suggested by the Stanford Social Innovation Review. 

In the meantime, people are also exploring alternative means to boost their income, like second jobs and side hustles. 

Another avenue to explore is investing in rental properties to generate passive income. Real estate investment platforms provide people with the opportunity to invest in real estate properties and earn rental income over time. Investors can even buy shares of rental homes, with investments starting as low as $100. 

Employers play a crucial role in breaking the cycle of quiet quitting. By promoting a better work-life balance, they can cultivate a workforce that is more passionate about their lives. Employers who wish to retain talent should consider offering work-from-home alternatives, which can save employees significant commuting expenses.

If individuals find themselves unable to afford a home on their current salary or struggling to make ends meet, it may be worth considering discussing a salary increase or a plan for career advancement with their employer. If their concerns are not met with receptiveness, they might contemplate the option of quitting rather than silently enduring the circumstances.

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