MONEY Millennials

5 Big Myths About What Millennials Truly Want

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Jamie Grill—Getty Images

We've heard a ton about millennials—where they want to live, what they love to eat, what's most important to them in the workplace, and so on. It's time to set the record straight.

In some ways, it’s foolish to make broad generalizations about any generation, each of which numbers into the tens of millions of people. Nonetheless, demographers, marketers, and we in the media can’t help but want to draw conclusions about their motivations and desires. That’s especially true when it comes to the young people who conveniently came of age with the Internet and smartphones, making it possible for their preferences and personal data to be tracked from birth.

Naturally, everyone focuses on what makes each generation different. Sometimes those differences, however slight, come to be viewed as hugely significant breaks from the past when in fact they’re pretty minor. There’s a tendency to oversimplify and paint with an exceptionally broad brush for the sake of catchy headlines and easily digestible info nuggets. (Again, we’re as guilty of this as anyone, admittedly.) The result is that widely accepted truisms are actually myths—or at least only tell part of the story. Upon closer inspection, there’s good reason to call these five generalizations about millennials into question.

1. Millennials Don’t Like Fast Food
One of the most accepted truisms about millennials—easily the most overexamined generation in history—is that they are foodies who love going out to eat. And when they eat, they want it to be special, with fresh, high-quality ingredients that can be mixed and matched according to their whims, not some stale, processed cookie-cutter package served to the masses.

In other words, millennials are huge fans of Chipotle and fast-casual restaurants, while they wouldn’t be caught dead in McDonald’s. In fact, the disdain of millennials for McDonald’s is frequently noted as a prime reason the fast food giant has struggled mightily of late.

But guess what? Even though survey data shows that millennials prefer fast-casual over fast food, and even though some stats indicate millennial visits to fast food establishments are falling, younger consumers are far more likely to dine at McDonald’s than at Chipotle, Panera Bread, and other fast-casual restaurants.

Last summer, a Wall Street Journal article pointed out that millennials are increasingly turning away from McDonald’s in favor of fast casual. Yet a chart in the story shows that roughly 75% of millennials said they go to McDonald’s at least once a month, while only 20% to 25% of millennials visit a fast-casual restaurant of any kind that frequently. Similarly, data collected by Morgan Stanley cited in a recent Business Insider post shows that millennials not only eat at McDonald’s more than at any other restaurant chain, but that they’re just as likely to go to McDonald’s as Gen Xers and more likely to dine there than Boomers.

At the same time, McDonald’s was the restaurant brand that millennials would least likely recommend publicly to others, with Burger King, Taco Bell, KFC, and Jack in the Box also coming in toward the bottom in the spectrum of what millennials find worthy of their endorsements. What it looks like, then, is that millennials are fast food regulars, but they’re ashamed about it.

2. Millennials Want to Live in Cities, Not Suburbs
Another broad generalization about millennials is that they prefer urban settings, where they can walk or take the bus, subway, or Uber virtually anywhere they need to go. There are some facts to back this up. According to an October 2014 White House report, millennials were the most likely group to move into mid-size cities, and the number of young people living in such cities was 5% higher compared with 30 years prior. The apparent preference for cities has been pointed to as a reason why Costco isn’t big with millennials, who seem to not live close enough to the warehouse retailer’s suburban locations to justify a membership, nor do their apartments have space for Costco’s bulk-size merchandise.

But just because the percentage of young people living in cities has been inching up doesn’t mean that the majority actually steer clear of the suburbs. Five Thirty Eight recently took a deep dive into Census data, which shows that in 2014 people in their 20s moving out of cities and into suburbs far outnumber those going in the opposite direction. In the long run, the suburbs seem the overwhelming choice for settling down, with roughly two-thirds of millennial home buyers saying they prefer suburban locations and only 10% wanting to be in the city. It’s true that a smaller percentage of 20-somethings are moving to the suburbs compared with generations ago, but much of the reason why this is so is that millennials are getting married and having children later in life.

3. Millennials Don’t Want to Own Homes
Closely related to the theory that millennials like cities over suburbs is the idea that they like renting rather than owning. That goes not only for where they live, but also what they wear, what they drive, and more.

In terms of homes, the trope that millennials simply aren’t into ownership just isn’t true. Surveys show that the vast majority of millennials do, in fact, want to own homes. It’s just that, at least up until recently, monster student loans, a bad jobs market, the memory of their parents’ home being underwater, and/or their delayed entry into the world of marriage and parenthood have made homeownership less attractive or impossible.

What’s more, circumstances appear to be changing, and many more millennials are actually becoming homeowners. Bloomberg News noted that millennials constituted 32% of home buyers in 2014, up from 28% from 2012, making them the largest demographic in the market. Soaring rents, among other factors, have nudged millennials into seeing ownership as a more sensible option. Surveys show that 5.2 million renters expect to a buy a home this year, up from 4.2 million in 2014. Since young people represent a high portion of renters, we can expect the idea that millennials don’t want to own homes to be increasingly exposed as a myth.

4. Millennials Hate Cars
Cars are just not cool. They’re bad for the environment, they cost too much, and, in an era when Uber is readily available and socializing online is arguably more important than socializing in person, having a car doesn’t seem all that necessary. Certainly not as necessary as a smartphone or broadband. Indeed, the idea that millennials could possibly not care about owning cars is one that has puzzled automakers, especially those in the car-crazed Baby Boom generation.

In many cases, the car industry has disregarded the concept, claiming that the economy rather than consumer interest is why fewer young people were buying cars. Whatever the case, the numbers show that the majority of millennials will own cars, regardless of whether they love them as much as their parents did when they were in their teens and 20s. According to Deloitte’s 2014 Gen Y Consumer Study, more than three-quarters of millennials plan on purchasing or leasing a car over the next five years, and 64% of millennials say they “love” their cars. Sales figures are reflecting the sentiment; in the first half of 2014, millennials outnumbered Gen X for the first time ever in terms of new car purchases.

5. Millennials Have a Different Attitude About Work
As millennials entered the workforce and have become a more common presence in offices around the world, much attention has been focused on the unorthodox things that young people supposedly care more about than their older colleagues. Millennials, surveys and anecdotal evidence have shown, want to be able to wear jeans and have flexible work hours to greater degrees than Gen X and Boomers. Young people also want to be more collaborative, demand more feedback, and are less motivated by money than older generations.

That’s the broad take on what motivates millennial workers anyway. An IBM study on the matter suggests otherwise, however. “We discovered that Millennials want many of the same things their older colleagues do,” researchers state. There may be different preferences on smaller issues—like, say, the importance of being able to dress casually on the job—but when it comes to overarching work goals achieved in the long run, millennials are nearly identical to their more experienced colleagues: “They want financial security and seniority just as much as Gen X and Baby Boomers, and all three generations want to work with a diverse group of people.”

What’s more, IBM researchers say, millennials do indeed care about making more money at work, and that, despite their reputation as frequent “job hoppers,” they jump ship to other companies about as often as other generations, and their motivations are essentially the same: “When Millennials change jobs, they do so for much the same reasons as Gen X and Baby Boomers. More than 40 percent of all respondents say they would change jobs for more money and a more innovative environment.”

MONEY Macroeconomic trends

8 Surprising Economic Trends That Will Shape the Next Century

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Douglas Mason—Getty Images

Here are the stories that will matter in the years ahead.

Forget monthly jobs reports, GDP releases, and quarterly earnings. As I see it, there are eight important economic stories worth tracking right now that could have a big impact in the coming decades.

1. The U.S. population age 30-44 declined by 3.8 million from 2002 to 2012. That cohort is now growing again. By 2023 there will be an estimated 5.8 million more Americans aged 30 to 44 than there are now, according to the Census Bureau. This is important, because this age group spends tons of money, buys lots of homes and cars, and start lots of new businesses.

2. U.S. companies have $2.1 trillion cash held abroad. Much of this is because we have an inane tax code that taxes foreign profits twice: Once in the country they’re earned in, and again when companies bring that money back to the United States. If Congress ends this rule and switches to a territorial tax system — in which countries can bring foreign-earned cash back to their home country without paying another layer of taxes, as every other developed country allows — there could be a flood of new dividends, buybacks, and investments in America. It’s huge, pent-up demand waiting to be spent.

3. U.S. infrastructure is in disastrous shape. Roads, bridges, dams, and other public infrastructure have been neglected for years. The American Society of Civil Engineers estimates that $3.6 trillion in new investment is needed by 2020 to bring the country’s infrastructure up to “good” condition. Will this happen soon? Of course not. This is Congress we’re talking about. But the good news is that this work must eventually be done. You can’t just let critical bridges and water structures fail and say, “Damn. That Brooklyn Bridge was nice while we had it.” Things will have to be repaired. Sooner rather than later would be smart, because we can borrow now for zero percent interest. But someday, it will happen. And it’ll be a huge boon to jobs and growth when it does.

4. The whole structure of modern business is changing. I’m not sure who said it first, but this quote has been floating around Twitter lately: “In 2015 Uber, the world’s largest taxi company owns no vehicles, Facebook the world’s most popular media owner creates no content, Alibaba, the most valuable retailer has no inventory, and Airbnb, the world’s largest accommodation provider owns no real estate.” Fundamental assumptions about what is needed to be a successful business have changed in just the last few years.

5. California is one of the most important agricultural states, growing 99% of the nation’s artichokes, 94% of broccoli, 95% of celery, 95% of garlic, 85% of lettuce, 95% of tomatoes, 73% of spinach, 73% of melons, 69% of carrots, 99% of almonds, 98% of pistachios, and 89% of berries (the list goes on). And the state is basically running out of water. Jay Famiglietti, senior water scientist at the NASA Jet Propulsion Laboratory, wrote last week: “Right now the state has only about one year of water supply left in its reservoirs, and our strategic backup supply, groundwater, is rapidly disappearing. California has no contingency plan for a persistent drought like this one (let alone a 20-plus-year megadrought), except, apparently, staying in emergency mode and praying for rain.” This could change rapidly in one good winter, but it could also turn into a quick tailwind on food prices. It could also be a huge boost for desalination companies.

6. New home construction will probably need to rise 40% from current levels to keep up with long-term household formation. We’re now building about 1 million new homes a year. That will likely have to rise to an average of 1.4 million per year, which combines Harvard’s Joint Center for Housing Studies’ projection of 1.2 million new households being formed each year and an annual average of 200,000 homes being lost to natural disaster or torn down. This is important because new home construction is, historically, one of the top drivers of economic growth.

7. American households have the lowest debt burden in more than three decades. And the largest portion of household debt is mortgages, most of which are fixed-rate. So when people ask, “What’s going to happen to debt burdens when interest rates rise?”, the answer is “Probably not that much.”

8. America has some of the best demographics among major economies. Between 2012 and 2050, America’s working-age population (those ages 15-64) is projected to rise by 47 million. China’s working-age population is set to shrink by 200 million, Russia’s to fall by 34 million, Japan’s by 27 million, Germany’s by 13 million, and France’s by 1 million. People worry about the impact of retiring U.S. baby boomers, but the truth is we have favorable demographics other countries can’t even dream about. This is massively overlooked and underappreciated.

There’s a lot more important stuff going on, of course. And the biggest news story of the next 20 years is almost certainly something that nobody is talking about today. But if I had to bet on eight big trends that will very likely make a difference, these would be them.

For more:

MONEY 401k plans

The Secrets to Making a $1 Million Retirement Stash Last

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Sarina Finkelstein (photo illustration)—Getty Images (2)

More and more Americans are on target to save seven figures. The next challenge is managing that money once you reach retirement.

More than three decades after the creation of the 401(k), this workplace plan has become the No. 1 way for Americans to save for retirement. And save they have. The average plan balance has hit a record high, and the number of million-dollar-plus 401(k)s has more than doubled since 2012.

In the first part of this four-part series, we laid out what you need to do to build a $1 million 401(k) plan. We also shared lessons from 401(k) millionaires in the making. In this second installment, you’ll learn how to manage that enviable nest egg once you hit retirement.

Dial Back On Stocks

A bear market at the start of retirement could put a permanent dent in your income. Retiring with a 55% stock/45% bond portfolio in 2000, at the start of a bear market, meant reducing your withdrawals by 25% just to maintain your odds of not running out of money, according to research by T. Rowe Price.

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Money

That’s why financial adviser Rick Ferri, head of Portfolio Solutions, recommends shifting to a 30% stock and 70% bond portfolio at the outset of retirement. As the graphic below shows, that mix would have fallen far less during the 2007–09 bear market, while giving up just a little potential return. “The 30/70 allocation is the center of gravity between risk and return—it avoids big losses while still providing growth,” Ferri says.

Financial adviser Michael Kitces and American College professor of retirement income Wade Pfau go one step further. They suggest starting with a similar 30% stock/70% bond allocation and then gradually increasing your stock holdings. “This approach creates more sustainable income in retirement,” says Pfau.

That said, if you have a pension or other guaranteed source of income, or feel confident you can manage a market plunge, you may do fine with a larger stake in stocks.

Know When to Say Goodbye

You’re at the finish line with a seven-figure 401(k). Now you need to turn that lump sum into a lasting income, something that even dedicated do-it-yourselfers may want help with. When it comes to that kind of advice, your workplace plan may not be up to the task.

In fact, most retirees eventually roll over 401(k) money into an IRA—a 2013 report from the General Accountability Office found that 50% of savings from participants 60 and older remained in employer plans one year after leaving, but only 20% was there five years later.

Here’s how to do it:

Give your plan a shot. Even if your first instinct is to roll over your 401(k), you may find compelling reasons to leave your money where it is, such as low costs (no more than 0.5% of assets) and advice. “It can often make sense to stay with your 401(k) if it has good, low-fee options,” says Jim Ludwick, a financial adviser in Odenton, Md.

More than a third of 401(k)s have automatic withdrawal options, according to Aon Hewitt. The plan might transfer an amount you specify to your bank every month. A smaller percentage offer financial advice or other retirement income services. (For a managed account, you might pay 0.4% to 1% of your balance.) Especially if your finances aren’t complex, there’s no reason to rush for the exit.

Leave for something better. With an IRA, you have a wider array of investment choices, more options for getting advice, and perhaps lower fees. Plus, consolidating accounts in one place will make it easier to monitor your money.

But be cautious with your rollover, since many in the financial services industry are peddling costly investments, such as variable annuities or other insurance products, to new retirees. “Everyone and their uncle will want your IRA rollover,” says Brooklyn financial adviser Tom Fredrickson. You will most likely do best with a diversified portfolio at a low-fee brokerage or fund group. What’s more, new online services are making advice more affordable than ever.

Go Slow to Make It Last

A $1 million nest egg sounds like a lot of money—and it is. If you have stashed $1 million in your 401(k), you have amassed five times more than the average 60-year-old who has saved for 20 years.

But being a millionaire is no guarantee that you can live large in retirement. “These days the notion of a millionaire is actually kind of quaint,” says Fredrickson.

Why $1 million isn’t what it once was. Using a standard 4% withdrawal rate, your $1 million portfolio will give you an income of just $40,000 in your first year of retirement. (In following years you can adjust that for inflation.) Assuming you also receive $27,000 annually from Social Security (a typical amount for an upper-middle-class couple), you’ll end up with a total retirement income of $67,000.

In many areas of the country, you can live quite comfortably on that. But it may be a lot less than your pre-retirement salary. And as the graphic below shows, taking out more severely cuts your chances of seeing that $1 million last.

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Money

What your real goal should be. To avoid a sharp decline in your standard of living, focus on hitting the right multiple of your pre-retirement income. A useful rule of thumb is to put away 12 times your salary by the time you stop working. Check your progress with an online tool, such as the retirement income calculator at T. Rowe Price.

Why high earners need to aim higher. Anyone earning more will need to save even more, since Social Security will make up less of your income, says Wharton finance professor Richard Marston. A couple earning $200,000 should put away 15.5 times salary. At that level, $3 million is the new $1 million.

MONEY Millennials

The Most Important Thing Boomer Couples Can Learn From Millennials about Money

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Getty Images

Gen Y-ers are more financially transparent with their mates than their parents.

When it comes to being open with a partner about your finances, millennials have all other generations beat.

Despite their lower rates of marriage and length of time in relationships, millennials appear to value financial transparency far more than Gen X or Boomers. A full 98% of millennials who are in a relationship reported that they’ve already spoken with their partner about money matters, a report from NerdWallet found.

By comparison, only 87% of middle-aged couples reported that they’ve discussed their financial situation with their partners.

Millennials were also the most likely group to have had these financial discussions before moving in together.

The NerdWallet study also looked into the significance singles place on a person’s credit and financial savvy when dating. The takeaway: 40% of singles reported that they were more likely to date someone with a higher credit score, and over half said they would be less likely to go on a date with someone who had a poor credit score.

For an upcoming story, MONEY wants to hear from both Boomers and Millennials about how they approach money in relationships. Do these findings surprise you? Or do they seem right based on your own experiences? If you’re in a relationship, we want to know when you and your partner had the money talk and what questions you both raised; if you’re not partnered up, we want to hear what financial criteria you think are important for people to consider as they approach a new relationship.

We’ll be in touch for more information if we’re considering your story for publication. We look forward to hearing from you.

TIME psychology

The SAE Scandal Is Another Example of Plummeting Tolerance for Bigots

A new study shows why the response to the racist scandal at the University of Oklahoma represents a larger shift in attitudes

The Sigma Alpha Epsilon frat members who were expelled from the University of Oklahoma last week after they were caught on tape chanting a racist song are more than just bigotry — they’re also an example of a new kind of out-group. According to a newly released longitudinal study of tolerance across generations, we’re now more tolerant of every group except people who are intolerant.

A new study out of San Diego State University and the University of Georgia found that since 1972, people have become increasingly comfortable with gay people, atheists, communists and militarists playing active roles in their communities. The only group that didn’t see an increase in tolerance was racists.

By modern standards, it feels somehow wrong to lump racists, atheists and gay people into the same survey, as if they were comparable identities. But the study looked at responses to a survey that began in 1972, which may be why the comparisons seem strange and outdated. Back then, racism, homosexuality, communism, militarism and atheism were all examples of controversial out-groups — and the study was intended to measure tolerance of these groups, not make judgments about them.

This new analysis of changing attitudes was done based on data collected since 1972 via the General Social Survey of more than 35,000 adults. To measure tolerance of different groups, participants (all of whom were over 18) were asked whether a member of that group (a communist, a gay person, etc.) should be allowed to give a speech in their community, teach at their college, or have a book in the public library. “It’s not just about having rights,” explains Jean Twenge, a co-author of the study and author of Generation Me. “It’s about interacting with the community, teaching kids, giving speeches.”

Tolerance for gay people, atheists, communists and militarists increased dramatically from 1972 to 2012, with the most dramatic shift in acceptance for gay people, which skyrocketed from around 58% in 1972–74 to 84% in 2010–12. The major aberration, though, was in attitude toward racists. The study found no increased tolerance for people who thought black people were genetically inferior — but also didn’t see a decreased tolerance for them. Instead, the tolerance for racists stayed around 56% since 1972. “We have more tolerance, but we don’t have much more tolerance for intolerant people,” Twenge said.

But 56% acceptance is still a fairly high tolerance for such an abhorrent view. Some have said that the incident at the University of Oklahoma proves how little progress we’ve made in eliminating racism, but Twenge disagrees. “I think the outrage that has followed these incidents is an indicator of how much things have changed,” she said. “If fraternity members in 1965 had said the things that the OU fraternity members said, nobody would have cared. And now they got expelled. I think that shows the difference.”

In general, the study found that young people tended to be more tolerant than older people, and that more recent generations were more tolerant than earlier ones. But the study also found that the most recent generation had the smallest tolerance gap between older people and younger ones — in other words, a 30-year-old and a 70-year-old today are more likely to agree than they would have in the 1970s. That’s because the biggest jump in tolerance levels was from the Silent Generation to the Baby Boomers.

However, even if tolerance has increased with the millennial generation, empathy hasn’t necessarily followed. A study out of the University of Michigan found that college students are 40% less empathetic today than they were 20 or 30 years ago. But what’s the difference between tolerance and empathy? “Being tolerant means ‘you can go do your own thing, be my teacher, give a speech, and I don’t really care if you’re gay or a communist,’” Twenge explains. “That’s different psychologically from saying ‘I understand your perspective, I feel the same things you do, and I really care what happens to you.’”

Social media may be responsible for both the rise in tolerance and the decline in empathy. While social media exposes people to different perspectives that encourage them to be more tolerant of different attitudes and lifestyles, it also may reduce their face-to-face contact with other human beings.

Read next: The Historical Roots of Fraternity Racism

Listen to the most important stories of the day.

MONEY Millennials

This One Question Can Show if You’re Smarter than Most U.S. Millennials

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Leonardo Patrizi—Getty Images

Young people in the United States ranked nearly last in a new international test of skills. See how you compare by answering this one question.

Let’s say you see an advertisement that reads:

Apply for a loan
Up to $70,000
Terms of the loan
Pay only $103 per month for each $1,000 borrowed
Payable in 12 equal monthly payments

What’s the annual simple interest rate on the loan?

If you answer correctly—you’ll have to read on to find out—you’re ahead of the curve when it comes to marketable job skills.

According to a new report from Educational Testing Service (ETS), which designs the GRE and other exams, American millennials lag far behind young people in other countries when it comes to all the top skills that employers seek.

Those include literacy, ability to follow basic written instructions, problem-solving while using technology—and math.

To arrive at these findings, ETS administered a new test called the Program for the International Assessment of Adult Competencies to thousands of people across 22 developed countries.

Out of all millennials, Americans ranked last for numeracy, tied with Italians and Spaniards. Gen Y-ers stateside also got lower reading comprehension scores than peers in 15 of the 22 countries. (Japan ranked number one across all categories.)

That sample question you saw above was described by ETS as 5/5 on the difficulty scale for numeric literacy. The answer, by the way, is around 24%.

You can see a longer list of sample questions here and read the full report on the ETS website.

More from Money.com:

Most Americans Fail This 3-Question Financial Quiz. Can You Pass It?

Europe Just Got Even Cheaper for U.S. Travelers

This Is How You Write a Perfect Interview Thank You Note

MONEY First-Time Dad

Why This Millennial Is Kissing the City Goodbye

Luke Tepper
This time next year, Luke will hopefully be playing on grass.

MONEY writer and first-time dad Taylor Tepper announces his retirement from urban living.

Renters in New York City have a uniquely dysfunctional relationship with real estate: The more time we spend living in some of the most desirable housing in the world, the less happy we become. Or maybe that’s just me.

My wife and I pay $2,100 a month for what seems like two square feet and minimal natural light in a converted hospital in a cool Brooklyn neighborhood. There’s an artisanal pizza shop, hole-in-the-wall cafe, and kid-friendly beer garden right around the block. I’m a 15-minute walk from a major metropolitan museum, botanical gardens, and the best park in all of New York. When it’s warm I bike, toss the frisbee, and drink whisky on rooftops. The beach is only 30 minutes away.

Unfortunately, warmth doesn’t last forever, and when it gets cold outside—say, from Thanksgiving to Easter—I spend more time indoors. Which means I’m trapped with a 21-pound baby monster who smashes, grabs, and pounds anything he can get his hands on, from cellphones to lamps. As a result, I’m slowly devolving into madness. Spending hours upon hours inside with two other people, only one of whom yields to reason, punctuated by intermittent excursions into tundra-like conditions, makes it seem as if the walls are slowly inching in on themselves.

Don’t get me wrong—I love the city, I went to school in New York, I’ve lived here for almost the entirety of my adult life. But after 13 months as a father and 19 months as a husband, I’m ready to escape to the land of malls and carpool lanes, single-unit houses and trees, the land of my birth: suburbia.

That said, it’s one thing to want move, it’s another to actually do it. Here’s a window into my thought process—and that of other millennials facing the same decision.

We’d Still Be Renters

Years of high rent and monthly student loan bills, combined with the cost of childcare, made it next to impossible for us to save up for a down payment. So we’re looking to rent wherever we go, which should mean more money left over for us. According to NerdWallet.com’s cost of living calculator, we could reduce our housing costs by about 25% if we moved to northern New Jersey or Long Island.

Even if we had enough funds stashed in our joint bank account, there are a couple of reasons why a home purchase would be a poor move. For one, conventional wisdom states that your target property should be no more than two and a half times your gross income. The odds that we’d find a New York-area home in the $300,000 range that’d we’d actually want to live in are low.

OK, let’s say that we had the savings and lived in a less expensive city. Should we jump into the market then? Not necessarily, says Pensacola, Fla.-based financial planner Matt Becker.

“Don’t rush to buy a house just because you want to go the suburbs,” Becker says. “That can lead to a quick financial decision as opposed to a good one.” Since transaction costs are so high, we’d need to stay in the home for a number of years to for buying to make financial sense. And who knows if we’ll want to live in a particular town for that long? My wife and I are still early on in our careers, we could end up lots of places.

Even Though Now Is a Good Time to Buy

If your bank account is fatter than ours and you’re ready plant some roots, buying might make sense. In fact, if you can get a mortgage, now is a great time to buy, since 30-year mortgage rates are absurdly low. Mortgage behemoths Fannie Mae and Freddie Mac announced late last year that they would allow down payments of as low as 3% on some mortgages. (These moves were directed at people who haven’t owned a home for three years, or are in the market for their first house.)

Once you’ve made the decision to move, you need to think about where you’d like to spend the next seven to 10 years. While we need more space, I don’t want to give up some of the best aspects of the city—good restaurants, a sense of community, hipster/independent movie theaters—in the trade. In that regard I’m like a lot of young buyers, says Greensboro, N.C.-based Realtor Sandra O’Connor. “There’s real movement among millennials who are looking for places to live with walkable areas,” she says. “They don’t want to always be in their car.”

If you’re still undecided about whether renting or buying is the better choice for you, check out Trulia’s rent or buy tool. Those who fall in the rent camp should understand that finding rental units outside of cities can be a lengthy process, per O’Connor and Becker.

All Suburbs Are Not Created Equal

So I want to move, but where should I go? I put the question to Alison Bernstein, president of the Suburban Jungle Realty Group, a firm that specializes in helping its clients find the best New York City suburb for them. Bernstein says that city dwellers eager to jump need to “understand that a house is a house, but the dynamic of a town is very difficult to grasp.”

To that end, Bernstein laid out a number of questions that anyone thinking about relocating needs to consider:

How many working moms are in town? What type of industries are there? What’s the breakdown of private versus public school? Even if the schools are highly ranked, there are towns where there is a lot of momentum to send kids to private schools and this does change the personality of the town quite a bit. What do you do over the summer? Does the entire town empty out? Does everyone hang out at the pool? Who is moving to the town? How will that change the school system and the vibe over the next 10 years?

Bernstein has also noticed a few trends with today’s younger buyers. “They are happiest with a smaller piece of property, a more modest home, and being in a more cosmopolitan suburb. Also they are not plowing every last penny into their house. They are still budgeting for travel.”

The Costs of Commuting

Right now I pay $112 a month (soon to be $116) for a 30-day subway pass to get to the office. We are only a 20-minute drive from my wife’s work, which means we shell out a very reasonable $50 a month on gas. When we move to the suburbs we will pay more. For the sake of argument, let’s say that we end up relocating to Pelham, New York, just north of the city. My monthly bill rises to $222, while my wife’s morning drive will consume almost twice as much gasoline, meaning our monthly outlay will jump by about $160.

But that’s just the money. The time we spend going from home to work and back will grow as well. Doing some back of the envelope calculations, my in-transit time will increase by 10 minutes each way, while Mrs. Tepper will spend an additional 20 minutes or so in traffic. Combined we’ll endure about an hour more per day on our commute, which sends shivers down my spine.

There are a few positives about the longer commute, though. For one, car insurance is generally cheaper outside of the city. According to CarInsurance.com, the average rate in my neighborhood is a little less than two times that of Pelham’s. While I wouldn’t necessarily expect to cut our car insurance costs in half, this savings would take a bit of the sting out of much higher commuting costs.

Aside from lower insurance rates, we could also dedicate a portion of our new abode as a work space. As Mrs. Tepper and I advance in our careers, we hope to have more leeway in terms of a flexible work arrangement. While our commute might be longer, we’ll most likely have to do it less often. And each saved car ride is more money in our pockets.

The Tradeoffs

Getting older involves a series of decisions that have the net effect of limiting one’s personal freedom. I became a journalist, which means I couldn’t be a doctor (leaving aside the question of whether or not I had skill to do it in the first place). Marrying one woman, and being keen on staying married, means I can’t marry a different one. A life in one town is a life not lived in another.

Which is all to say that I’ll miss living in Brooklyn. Despite the hipster clichés, I really do enjoy artisanal, delicious, overpriced hamburgers and 17 different IPA varieties at my bars. I like walking everywhere, even if we have a car, and a touch of self-righteousness about your home is good for the soul.

But I think of my sojourn in New York’s best borough as I think of college: I wish I could stay forever, but it’s time to move on.

Financial planner Matt Becker understands my dilemma. He recently moved from Boston to suburb-rich Pensacola and is still adjusting to his new life. He walks less and drives more. While his young family has more space to play and grow, that also means he has more house to furnish and air condition, which means more costs. I imagine we’ll encounter something similar.

The combination, though, of high rent and minimal space has lost its luster. Even if we end up breaking even in our move, or only saving a little bit, our dollars will go further. We can have a backyard for our son and our dog and us. We’ll have a laundry machine on the premises, so we don’t have to lug 20 pounds of clothes a couple of blocks through the snow. We’ll have a full-size dishwasher.

I proudly proclaim without regret what might have depressed my younger self: these amenities are more appealing than staying in Brooklyn.

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