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I feel like in socal, it is nearly impossible for the younger generation without having a money gift from parents or family. My wife and I both went to college, both graduated with decent paying jobs in a professional services firm by the time we were 23, both went to a CSU (little to no school debt), and we can't even dream about home ownership for at least 5 years. We also don't spend a lot of money on anything besides bills. The reality for us is that we WILL NOT buy a house until we have a sub $1800 mortgage (including the FHA loan insurance stuff), so we would need close to a six figure down payment to get in that range with current prices.
The more I think about it, the more I think we will be renters until shit crashes again, which I believe will happen within the next 10 years. People these days are becoming more confident in intangible securities, companies with "innovative" ideas, commodity prices like gold are decreasing again, and once there is a "scare" again, I feel like houses etc will decrease in value again.
That being said, I don't know a single co-worker with a comparable age who has bought a house without their down payment being a wedding gift from their families. As time goes on it will continue to be harder and harder for the lower class to move up, and there will be a bigger gap between upper and middle/lower.
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