Famous Foods Taking Part of the Blame for Millennialsโ Slow Entry Into the Housing Market
Millennials are slowerย at getting into the housing game that generations previously. Some experts cite later marriage, othersย blame student loan debt. But according to a recent story onย the BBC, avocados deserve at least part of the blame based on their avocado toast index.
10-Second Summary
- 2017 saw $4.82 billion in global avocado imports โ a 21% increase from 2012 to 2016
- The average restaurant avocado toast in San Fransisco is $9 โ a $3285 per year habit if you have one a day
- 2018 median home price โ $210,000
- A 20% downpayment costs 12.8 yearsโ worth of avocado toast
- A 3% downpayment is just under 2 yearsโ 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 arenโt buying houses over it, but letโs 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 โ 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 โavocado hand.โ
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.
2018โs 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 donโt need 20% down. If youโre willing to pay PMI, you can get in for as little as 3% โ $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.
