I recently came across two different sources analyzing the realities of home ownership in the US. One is our oft-quoted @KurtSupeCPA on X while the other is Chamath Palihapitiya on Substack. Let’s start with the X post:
"Started at 22 with $400 in his pocket and a job paying $16,000 a year. Bought his first house at 26. Had two kids by 28. Retired at 63 with $2M. No inheritance. No help. No shortcuts. He did it the right way and he knows it. His son is 34. Two jobs. $76,000 a year. Smart kid. Works hard. Has very little to show for it.
Dad doesn't understand it. Neither did I until we did something neither of them had ever done. Compared the actual numbers. Dad's first house: $54,000. Son's cheapest option in the same area: $490,000."
And then, we can layer in the Social Capital analysis:
"For decades, the majority of middle-income Americans stored their wealth in their homes. In 1970, a median home cost 2.7x the median household income. By 2024, that figure reached 5.1x. Today, 62% of middle-class wealth sits in an asset that 7 in 10 American households can no longer afford."
Let’s bookend this thought with the X post again:
"Same city. Same ambition. Same work ethic. Completely different game. My client sat quietly looking at those numbers for a long time. Then he said: "I never once looked at it from his side." He called his son. No agenda. No lecture. Just an honest conversation."
These conversations are how we can control what we can control today and help our families. Let’s understand what Mom and Dad have built, what the Next Generation is striving to build, and how we can all help each other. Family legacies can endure, but they need proper planning, paperwork, and process supported by honest, family dialogue. These kitchen table conversations help move our families forward…