For a long time, people looked to baby boomers for money advice. They grew up when the economy was strong, houses were cheap, and jobs often came with good benefits.
But as helpful as their intentions may be, some of the things boomers say about debt and mortgages just don’t apply to today’s world.
Here are six common pieces of advice boomers often give, and why they don’t quite hold up in 2025.
1. “Buy a house as soon as you can.”
This made sense when homes cost three times the average salary. In 1980, the median home price in the U.S. was about $47,200, while the median household income was around $21,000.
Today, the median home price hovers near $420,000, while median income has only climbed to about $75,000.
These days, homes cost around six times what the average person makes each year. On top of that, mortgage rates are high, many people have student loans, and banks are stricter about who they lend to.
So buying a house isn’t as simple as it used to be.
2. “30-year mortgages are the best deal.”
Boomers love fixed-rate, 30-year mortgages because they offer predictable payments and long-term stability.
And back then, homes were affordable enough that paying interest over three decades still felt like a fair trade.
But for younger buyers today, a 30-year mortgage often means paying hundreds of thousands in interest over time, especially with current rates above 6.5%.
Many are looking at 15-year loans, adjustable-rate options, or even co-buying with friends to reduce the overall debt burden.
3. “Avoid renting—you’re just throwing money away.”
This advice assumes that buying is always financially superior. But in today’s market, renting can sometimes be the smarter move.
High home prices, expensive property taxes, rising insurance costs, and unpredictable maintenance fees mean buying doesn’t always build wealth.
Renters, especially in major cities, can often invest the difference or maintain flexibility to move for job opportunities.
A May 2023 Redfin analysis found that only four major U.S. metro areas, Detroit, Philadelphia, Cleveland, and Houston, were cheaper to buy in than rent. In the other 46 of the 50 largest metros, renting made more financial sense.
By March 2024, Redfin reported that monthly mortgage payments were typically about 25% higher than rents in those areas, showing that renting still remained the more affordable option in most cases.
4. “Debt is bad, always pay it off ASAP.”
Boomers grew up with a fear of debt. Credit cards were a last resort, and mortgages were something to pay off early.
That worked in an era of steady wage growth and lower costs of living.
But not all debt is the same today. Some student loans have really low interest rates, and some jobs help you pay them off.
With prices going up, it can make sense to keep certain debts if it means you can save or invest money elsewhere.
It’s also important to note that paying off low-interest debt aggressively might not make sense if it comes at the cost of retirement savings or investing in higher-return assets.
5. “You don’t need help buying a home, just work hard.”
This idea ignores how much the housing landscape has changed. Boomers bought homes when down payments could be scraped together from a single income job, sometimes without a college degree.
Today, many younger buyers rely on help from parents, down payment assistance programs, or shared ownership to even get in the game.
Hard work still matters, but it often isn’t enough on its own.
6. “Interest rates are high now? We bought our first house at 12%!”
Yes, mortgage rates in the early 1980s hit double digits. But context matters.
Homes cost a lot less compared to how much people earned, and many had jobs with good benefits and steady pay. Everyday expenses were lower, and wages kept up better with rising prices.
Also, in high-rate eras like the 1980s, many buyers quickly refinanced when rates dropped.
Today, refinancing isn’t always an option due to tighter debt-to-income ratios and volatile job markets.
So while today’s 6.5% interest rate isn’t a historic high, the financial environment makes it harder to manage.
How Today’s Reality Shifts the Conversation
Boomers aren’t wrong for sharing what worked in their day. But things are very different now.
Housing is way more expensive compared to what people earn, debt is harder to manage, and buying a home isn’t as straightforward.
It’s okay to rethink old advice. Younger people today aren’t doing things wrong, they’re just dealing with a whole new reality.