Are You Better Off Than Our Parents? The Answer Will Surprise You

You're sitting at the Thanksgiving table. Dad tells the story of how they bought their first house in the '90s for $120,000. Mom adds they paid off the mortgage in 15 years.

And you're thinking: "We really got the short end of the stick..."

Sound familiar? I get it. I thought the same thing for years.

Then I looked at the data. And what I found genuinely surprised me.

Spoiler: We're Actually Doing Better. But We're Playing a Different Game.

When you compare our generation (25–35 year olds) to our parents at the same age (roughly 1995–2000), the picture is more nuanced than the doom-scrolling would have you believe.

Yes, a home in San Francisco or Brooklyn is wildly more expensive. But almost everything else is better — healthcare access, travel, career opportunities, investment options.

And here's the key: the path to wealth exists even without a home in a major coastal city.

Let's break it down.

Yes, Housing Is More Expensive. But Also Better.

This number gets thrown around a lot: the median home now costs about 5–6 times the median income. In 2000, it was closer to 3.5–4 times.

Housing Affordability: 2000 vs 2024

But here's what rarely gets mentioned.

Today's Homes Are in a Completely Different League

Compare a typical home from 1995 to a new build in 2024. The difference is massive.

Feature	1990s Home	2024 New Build
Insulation	Basic, single-pane windows	Triple-pane, full envelope insulation
HVAC	Window units, old furnace	Smart thermostats, heat pumps, zoned systems
Layout	Closed-off rooms, cramped	Open concept, natural light
Technology	Phone jacks	Fiber internet, smart home ready
Garage	Maybe a single, street parking	Attached 2-car, EV charging
Energy Rating	Poor efficiency	ENERGY STAR certified

Our parents bought cheaper, but they also bought homes that now need $50,000+ renovations just to meet today's standards — popcorn ceilings, original HVAC, aluminum wiring... trust me, I've seen it.

Housing costs more today — but you also get more.

The Key Chart: Home vs. Investments

Now here's the important part.

Our parents put their money into a house. We can put money into investments. Where does each path lead after 25 years?

Comparison: Home vs. Investments

Surprisingly similar outcomes.

Parents: Bought a home for $120,000 in 2000. Today it's worth ~$400,000–500,000.
Us: Invest consistently in an S&P 500 index fund. After 25 years at historical ~10% average returns, we have ~$500,000–800,000.

Different paths, similar destination.

Our parents built wealth through real estate. We can build it through investments. Both strategies work.

The game has changed. In 20 years, maybe we won't even own homes — maybe we'll own pieces of companies instead. Who knows?

Different Game, Different Rules

Here's the critical mindset shift.

The Parents' Game (2000):

Buy a house in the suburbs as soon as possible
Pay off the 30-year mortgage
The house = your one and only investment

Our Game (2024):

You don't have to buy in NYC, LA, or San Francisco
You can live in a mid-size city or work remotely
The money you save can be invested
You end up with housing + an investment portfolio

Example: Coastal City vs. Affordable Market

Numbers are illustrative — focus on the ratios.

Option	Home Price	Monthly Mortgage	Left for Investing
Condo in San Francisco	$1,300,000	~$8,200/mo	$0
House in Austin suburbs	$450,000	~$2,800/mo	$1,500/mo
House in Raleigh-Durham	$380,000	~$2,400/mo	$2,000/mo

Over 25 years, that $2,000/month invested at historical S&P 500 returns = ~$1.5 million.

So: house worth $380,000 + portfolio of $1.5 million = ~$1.9 million total.

Vs. a condo in SF that might appreciate to $2 million... if you're lucky.

Similar outcome, different route.

Careers: More Opportunities Than Ever Before

Now let's talk about the positive side that rarely makes headlines.

Young People Are Earning More

In 2000, the average starting salary for an entry-level programmer was around $40,000.

Today? Entry-level software engineers start at $80,000–$100,000. Senior engineers? $150,000–$200,000+.

And it's not just tech.

Field	Starting Salary 2000	Starting Salary 2024
Software/IT	~$40,000	$80,000–$120,000
Finance/Accounting	~$35,000	$55,000–$75,000
Marketing	~$28,000	$50,000–$65,000
Engineering	~$45,000	$70,000–$90,000

Yes, inflation matters. But even adjusted for inflation, starting salaries are higher than 25 years ago.

Career Growth Is Faster

In 2000, you waited 10 years for a promotion. Today?

Senior positions in 3–5 years in many industries
Management roles before 30 are common, not rare
Career switching is normal and accepted

The job market is more dynamic. Companies compete for talent. If you're good, you have leverage.

Remote Work Changed Everything

This is something our parents never had.

In 2000, your job options were limited to wherever you lived. Today?

Work for FAANG companies from anywhere
Earn a San Francisco salary while living in Raleigh, Austin, or Denver
33% of Frisco, TX workers are now fully remote
Startups pay competitively without requiring relocation

You can work for a world-class company, earn an above-average salary, and live wherever makes financial sense.

How to Win the New Game

It's not about copying our parents. It's about understanding the new rules.

1. Don't Overvalue Coastal Real Estate

A condo in Manhattan isn't the only path to wealth. A house in the suburbs + a diversified investment portfolio can be a better combination.

Remember the pandemic and how many companies permanently embraced remote work.

2. Start Investing Immediately

Even $500/month makes a massive difference over 25 years. Compound interest + 401(k) employer matching + tax-advantaged accounts = a powerful combination.

3. Invest in Your Career

Young people today can earn well, quickly. Upskill constantly. Change jobs strategically. Negotiate aggressively. The market is on your side.

4. Think in 25-Year Horizons

Our parents had a house and nothing else. You can have housing + a portfolio + a career with growth potential.

A Tale of Two Paths

The Parents' Path (2000):

House in the suburbs for $150,000
30-year mortgage, paid off
Today: house worth $450,000
No other investments

Your Path (2024):

House 45 minutes outside a major city for $350,000
Lower mortgage, money left over for investing
In 25 years: house + portfolio together worth $1.5 million+
Plus better career opportunities along the way

Which path is better?

Both lead to similar destinations. Just via different routes.

Conclusion: Different Game, Same Goal

Are we better off than our parents?

Yes — but differently.

A condo in San Francisco is more expensive. That's a fact. But:

Housing standards are higher
Career opportunities are better
Investing is more accessible than ever
The path to wealth exists without coastal real estate

Our parents played the game of "buy a house as fast as possible." We're playing the game of "build wealth strategically."

And you know what? Our game has more options.

So make the most of them.

Have your own take or experience? Drop me a line at vymerd@gmail.com.