Buying a home seems impossible. Here’s what Boomers just don’t understand

Whenever someone complains about today's mortgage rates, somebody inevitably says: "You think 7.5% is bad? I paid 14% in the 1980s!" They're right about the interest rate.

But they're missing the bigger problem.

GEN Z IS WORKING HARD, BUT THE ECONOMY IS PUTTING THE AMERICAN DREAM OUT OF REACH FOR MANY Today's homebuyers aren’t just fighting a 7% mortgage.

They're fighting high rates on a home price that has grown much faster than the amount sitting in their checking account.

Look at the numbers.

A PROBLEM HIDING IN PLAIN SIGHT IS KEEPING AMERICANS FROM BUYING HOMES In 1984, the median new home sold for about $79,900, while median household income was roughly $22,400.

That's a home-price-to-income ratio of about 3.6 times income.

The average 30-year mortgage rate that year was a painful 13.9%.

Now fast-forward.

AMERICA'S HOUSING MARKET COULD RUN OUT OF SOMETHING MORE IMPORTANT THAN HOMES By 1990, the ratio had climbed to about 4.1 times income, with the median new home costing $122,900.

In 2000, it remained around 4 times income, even with mortgage rates still above 8%.

Then housing prices really started separating from paychecks.

GEN Z DEMOCRATIC LAWMAKER SPARS WITH BABY BOOMERS OVER WHETHER AMERICAN DREAM IS DEAD By 2010, the median new home cost roughly 4.5 times median household income.

By 2020, it was approaching 5 times income or $330,900 for the house versus roughly $68,000 in household income.