For many people, when we were starting out in our careers, earning a six-figure salary was the ultimate goal. If you made $100,000 or more, you were considered relatively successful. The compensation would afford you the opportunity to fulfill the American dream—owning a home with a white picket fence in a lovely neighborhood with good schools for when you have children. Fast-forward to today and that has all changed.
According to the Wall Street Journal, there is a growing trend of $100k-earning professionals electing to rent instead of purchasing homes. Almost 20% of households earning $100k or more are bucking historical norms and renting apartments. A $100k income is still considered a comfortable living, dependent upon the city. To put things into perspective, the median U.S. household income, according to the Census Bureau, was $63,179 in 2018.
Here’s why this trend is an issue. The reasons for renting—compared to buying a home—are complex. Due to exceedingly high student-loan debt, burdensome personal expenses (such as insurance and health care costs), leased cars, credit card debt, smartphones, utility bills and other expenses have made it difficult for potential buyers to save enough for the down payment on a home.