I know the current recession and subsequent falling of housing prices has sucked for many, but not for future homebuyers. For us Millenials, we needed this to happen. Without it, the prospects of us owning a house was very unlikely.

First of all, the way the housing boom of the last 10 years was going, renting became much more affordable than buying over the long haul. Let’s say most couples want to retire in a house that is worth $350,000 on average. Sure, that’s slightly higher than what the national average was at its peak ($329K, March 2007), but in many of the higher-income parts of the country the average house cost was much more, and besides, we all want to end up in our dream house, which more than likely cost more than the average house.

But I digress. Buying that $350,000 house of ours with a 20% down payment and a 6.5% interest rate would be more expensive than renting for 30 years. To be exact, it would be $95K cheaper to rent a place that cost $1,500 over the 30 years of the mortgage. That includes everything from annual renovation and capital gains exclusions, to utilities and maintenance costs. I don’t have any facts on this, but had this current upward housing trend continued uninterrupted, Millennials probably would have been the first generation where a life of renting was cheaper than owning one’s own house.

On the other hand, let’s say that buying a house would be worth the $150K to $200K, because most people look at buying their dream house as an emotional investment and not a monetary one. But even if we threw caution to the wind in regards to cost, that doesn’t mean that we could have afforded it. By the time Millennials reached their 30’s and were actually in a position to buy a permanent house, the average house would have cost at least $500K. Salaries certainly would not have kept up with that average, and many families would have been forced to rent.

But right now, as of January 2009, the average home price is $234K, down $50K from January 2008. And if housing prices continue to follow, we’re talking about average prices below the $200K mark, a mark we haven’t seen since February of 2000. At that average national price, the Millenials will certainly be able to afford the houses they will eventually retire in.

So relax. While this recession is full of doom and gloom, let this be a bright note for you youngsters out there. One day, you will be able to afford a house, just like your parents. And truth be told, you have this recession to thank for it, because without it, I’m not so sure you (or me) would have had a home to call your own.

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