“Back in My Day…”: Do Today’s Buyers Really Have It Worse?
You’ve heard it before.
Maybe you’ve said it before.
“Our parents bought a house for $60,000. We’ll never be able to afford that.”
“They had it so easy. We’re screwed.”
The narrative among many younger buyers—especially Millennials and Gen Z—is that the American Dream has been priced out of reach. That homeownership is a relic of a bygone era, when interest rates were low, prices were manageable, and a single income could buy you a four-bedroom ranch with a pool and a two-car garage.
But let’s take a second to zoom out and look at the numbers. Are things truly worse today? Or just different?
The Reagan Years: Nostalgia vs. Reality
The 1980s are often romanticized—especially by those who came of age during them. The economy was booming, patriotism was high, and if you believe the Instagram history memes, everyone owned a home and had a perfect perm.
But here’s the truth: mortgage rates during the Reagan administration averaged 12.87%. In 1981, they peaked at 16.64%.
Let’s say you bought a home in Southern California in 1985 for $110,000 (which was typical). With a 13% interest rate (common in the Reagan years), your monthly mortgage payment would have been about $973.
That may sound dreamy… until you adjust for inflation.
👉 In today’s dollars, that $973 payment feels more like $3,602/month.
Now let’s compare that to the average 2025 buyer:
-
Home price: $850,000
-
Rate: 6.5%
-
Payment: $4,298/month
So yes, the rate is much lower today—but the price is much higher. And when you adjust for inflation, the difference in monthly financial burden is surprisingly close.
What That Means
-
Your Gen Z grandparents in the ’80s weren’t living some easy-breezy real estate dream.
-
They were just committed to buying—even when it was expensive.
-
Today’s rates are far friendlier, but the price tags aren’t.
-
Yet somehow… people are still buying. Just like they did back then.
The Myth of “It Was Easier Then”
Let’s retire this myth.
Yes, your parents paid less for their house—but they also earned less, paid 13% interest, and couldn’t refinance for years.
Today’s market has its own challenges: limited inventory, high prices, competition. But it also has flexibility. Adjustable-rate loans, creative financing, down payment assistance, and the opportunity to refinance when rates shift (and they will shift).
You’re not worse off. You’re just in a different season. And history shows that every era of homebuying has its pain points—but also its opportunities.
Looking Forward: The Power of Equity Growth
Buying in today’s market requires courage—but also perspective. It’s easy to get discouraged by the monthly payment, but savvy buyers know the real win in real estate is time in the market.
Let’s say you purchase a home today for $850,000. That price might sting right now—but what happens in 5, 10, or 15 years?
Historically, Southern California real estate has appreciated at an average of 5–6% per year. Let’s run a very conservative projection of 4% annual growth:
-
Year 1: $850,000
-
Year 5: ~$1,034,000
-
Year 10: ~$1,258,000
That’s over $400,000 in potential equity after ten years—money that builds quietly in the background while you make your monthly payment.
Meanwhile, rent prices go up.
And here’s the kicker: rent doesn’t do anything for your future. You’re feeding someone else’s investment—not your own.
So Where Can You Buy for $850,000?
A lot more places than you think—if you know where to look.
Take 503 E 222nd Street in Carson, one of our latest listings at the Klapper Group. This charming 3 bed / 2 bath single-family home just hit the market for $800,000.
That’s under the average South Bay price, and it checks all the boxes for a smart first step into equity growth:
-
Quiet neighborhood
-
Solid layout
-
Big upside for long-term value
You can buy here—and we’re here to help you figure out how. Take a look at where and what you can buy in the South Bay under $1M – CLICK HERE
🧩 You Might Qualify for More Help Than You Think
Here’s something we hear all the time:
“I didn’t think I could buy. I figured I’d need $200,000 in cash.”
But the truth? There are dozens of programs out there designed to help first-time and first-generation buyers—and many people don’t even realize they qualify.
We have access to:
-
First-time homebuyer programs that reduce down payment requirements
-
Grants and silent second loans that help cover closing costs
-
Lender and city-backed assistance programs
-
Special loan options for educators, veterans, and healthcare workers
-
And, in some cases: down payment assistance up to $50,000
If you’re making a steady income, have decent credit, and can afford rent—you might be a lot closer to owning than you think.
The best part? You don’t have to figure this out alone.
At Klapper Group, we connect you with trusted lenders, walk you through available programs, and help you run the real math—not the internet rumor version.
✅ Bottom Line
Today’s buyers are not doomed. They’re just in a different kind of market—one that still rewards those who act with intention, information, and long-term vision.
You may not be able to “time” the market perfectly, but you can step into it with confidence—and start building the kind of generational wealth that your grandparents, yes, even during the Reagan years, set in motion.
Our mission at the Klapper Group is to Educate, Advocate and employ our Expertise to assist our clients in achieving their goals – that means all goals – and if breaking into homeownership is your goal, and you feel that is out of reach, we need to sit together to have the “educate and advocate” part of the consultation so we can go to work with our expertise to help you put a plan in motion. CONTACT US today and let’s make your goals a reality!