The Real Reason Millennials Aren’t Buying Houses is… Avocados???
Famous Foods Taking Part of the Blame for Millennials’ Slow Entry Into the Housing Market
Millennials are slower at getting into the housing game that generations previously. Some experts cite later marriage, others blame student loan debt. But according to a recent story on the BBC, avocados deserve at least part of the blame based on their avocado toast index.
- 2017 saw $4.82 billion in global avocado imports – a 21% increase from 2012 to 2016
- The average restaurant avocado toast in San Fransisco is $9 – a $3285 per year habit if you have one a day
- 2018 median home price – $210,000
- A 20% downpayment costs 12.8 years’ worth of avocado toast
- A 3% downpayment is just under 2 years’ worth of avocado toast
Give Up Avocado to Buy a House?
It seems a little far-fetched that something like an avocado habit can cost enough that Millennials aren’t buying houses over it, but let’s look at the number before we dismiss it completely.
One story cites an International Trade Center report that claims avocado imports were $4.82 billion – a 21% increase from 2012 to 2016. Holy guacamole!
Even a London plastic surgeon says he has so many patients in 2017 that cut themselves slicing avocados that they started calling it “avocado hand.”
Okay, so Millennials consume a lot of avocados and there are potential medical bills to go along with it.
In one story, the BBC says the average restaurant avocado toast costs $9. Ouch!
$9 a day times 365 days a year is a $3285 per year habit, plus medical expenses.
2018’s median house price in the US is $210,000. 20% of that for a downpayment is $42,000, or 12.8 years worth of avocado toasts.
On the other hand, you don’t need 20% down. If you’re willing to pay PMI, you can get in for as little as 3% – $6300. Now that avocado habit is eating into your home buying plans. Making a good ole fried egg sandwich in your apartment can get you the home savings you need in just under 2 years.
Food for Thought
When in the world did we start teaching our children that $5 coffees and $9 breakfast toasts are a God-given right? If you can afford it, by all means, spend your money how you like. But for a generation complaining about the weight of student loan debt, drinking or smoking might be cheaper therapy than avocados.