
As housing costs and the cost of living continue to increase in America, younger generations are making short-term sacrifices to secure their long-term futures. In some instances, that short-term sacrifice includes living in a cost-effective van and showcasing their “home” on social media.
Michael Alberse, a TikToker with 57,000 followers, is one example of a young man who moved into a van after graduating college. Alberse was working for Google during that time and believes that his living arrangement changed his financial future.
“I chose to live in a van as a short-term sacrifice to almost guarantee my long-term financial future,” Alberse said. “I chose to buy a van and build it out so I could save money on rent and put those additional dollars into investments… So it’s not my forever plan. But at least it’s a great start, so I have a strong base for my future.”
Rising costs of housing pushing millennials to make 'drastic sacrifices' by living in vans for years https://t.co/8HP1b1xRgz
— FOX Business (@FoxBusiness) February 1, 2024
Alberse eventually sold his van, moved back to his parent’s home with his fiancee, and ultimately moved from California to Atlanta and bought a home.
Another couple, Court and Nate, who moved into a van because of skyrocketing home costs, say they have been able to save over $70,000. They used those savings to wipe out their debt and eventually purchase land in southern California.
Business Insider pinpointed a few contributing factors as to why so many millennials have had difficulty purchasing a home. The biggest factor is the sheer number of millennials that have recently entered the housing market.
“One thing keeping home demand — and prices — up is that there are a lot of millennials trying to buy,” the article stated.
In 2020, millennials overtook baby boomers as the largest generation, with the bulk of millennials looking to purchase a home for the first time.
Millennials also generally have more debt and a lower net worth than their parents had at the same stage of life, and growing that wealth is more difficult when so many do not own a home.
In 2021, when Biden first took office, the median age of a first-time home buyer was 33. In 2022 that age grew to 36, and the average age for 2023 has not yet been calculated.
According to Florida-based realtor and Tik Toker Freddie Smith, the median household income can no longer afford the median home.
“The biggest problem that millennials and Gen Z’s are having is their income isn’t high enough, unfortunately, to qualify for the average house in America,” Smith said.