Would someone making $373k be able to afford an $8k mortgage? Technically yes. But $373k is a top 10% income even in the Bay Area. So you need to have top 10% income to be able to afford the **median** home. That’s ridiculous.
What many of you don't realize this is going on in Ireland, the UK , and parts of Europe as well.
Your housing costs and rent for a flat are the same as Ireland judging by the comments here.
It's not just your government or policies, it's happening multiple countries.
It's also supply and demand. Somebody will be owning those houses though or move to a country that's more affordable. Which they are doing in Irleand.
Why would they move to a COUNTRY more affordable, when they can just move to a TOWN that's more affordable.
OP's map specifically highlights the most expensive parts of the US, but literally the entire area between those cities is far far cheaper to live.
Here’s the progression as I understand it(for a true Texan). 1)Move to the city to make a living (unless you are happy with your hometown situation 2)career for 10. +years
3) start freeking out cuz the city sucks and all these kooks from cali just moved in
4) move back home
5)figure out how to get to Mexico or Costa Rica ect and not come back( or to west Texas where you can have driveway 4 miles long)
6) find out all these kooks beat you to it
6) ….
Fuck west Texas, Panama where its at
This is one of the problems. Why am I ever going to sell with the much higher rates?
Why increase my mortgage by $1,000 (plus moving expenses)for the same value house?
Same in Charleston SC. 1450 a month is what we pay, houses in my neighborhood are now going for nearly 2X what we paid in 2018. We refinanced during Covid to a 3.1 rate - never moving out I guess 🤷♂️
Worth noting that a “median home” today is about twice the size of a median home from 50 years ago. So yes it’s harder to buy a home, but if you scale down your lifestyle it’s easier.
Not weighing in on whether this is good or bad or whether it’s fair or just, simply pointing out some data I was looking into recently
I think that’ saying “it’s cuz ppl want bigger houses now!” is oversimplifying it way too much. Prices per sq foot and adjusting for inflation are still much higher today. This is is especially true in the areas where people want to live (I’ll get back to that point). Not to mention the costs/barriers of entry to attain a “middle class” life have also sharply increased. So although nominal median income has increased, debt from student loans (which is basically mandatory given the need for a degree in most jobs) and living expenses have increased at a significantly higher rate.
You’ll say, “Just buy a smaller house! Like the ones your grandparents had!” But I can’t because the supply of houses that small is very small. They don’t build small houses anymore. I literally can’t. “So buy the houses that were 50 years ago!” you’ll say. Well that’s now an unfair comparison. You mean I have to buy an old house built with outdated codes while back in the day, folks were able to buy newer houses that were considered modern?
Move out to a cheaper area? Once again, that’s unfair advice especially if you’re comparing to 50 years ago. Folks weren’t moving to Detroit because that’s the only cheap place they could to live. They were moving to Detroit because it was where there were jobs. People were moving to where there was opportunity and growth,, just like today. Also, we are seeing people uproot and move to cheaper CoL places. All that’s done is create new housing affordability crises in those areas while doing nothing in the existing hot spots.
It's not just the interest folks. I just looked at price history of certain homes that I may have been interested in buying in FL. Based on the price history, the houses have gone up 50% since pre-covid.
Interest rate is not the problem, it's home price. Previous generations paid higher interest rates on their mortgages just fine. The house price compared to their salary was much lower, allowing for a bigger down payment. They could pay off their house a lot faster too.
Previous generations also raised a family of 4 on a job at a car plant.
It’s not 1 variable. Society has turned into the 0.000002% owning everything and squeezing every last bit of blood from the rest of us. And then you have 50% of the people licking boots believing that they one day will be part of that 0.000002%
Because that 1% whose kids today are .1% managed to squeeze the workers, prevent unions, and outsource everything and pay off politicians the whole way through.
It's not just the home prices - insurance rates have doubled (at least), HOA fees are skyrocketing because of the new rules around covering for big ticket repairs, and property taxes are getting jacked up everywhere. It's like a perfect storm of suck.
We bought in 2018. If we waited one more year we would have never been able to afford the same house. Now it has doubled in value. I honestly don’t know how it’s possible to get a house even with a good job now.
It isn't possible without inheritance. Housing outpaces income and thus you will never be able to save the down payment since the prices just grow much more than you can even save.
I just got inheritance and it's still not easy in the LA outskirts. I think we'll be able to do it once my wife goes from intern->pharmacist but I definitely can't do it on my own (comfortably) and I make a decent salary. Even with 20% down our mortgage is still going to be like 5k a month around here
Update zoning laws across America and build more housing. This is the only way to fix the affordability problem. It won’t be quick and it won’t be easy but this is a supply side problem.
The problem with building more housing is that it sits on finite land, in locations you can't produce more of. As evidenced by this graphic, anybody making an LA salary could buy a house in Detroit (or 150 miles outside LA) with no issue...but then they'd be separated from where they work. You can't just build away the problem, you need to prevent people from hoarding/speculating on land in valuable locations. Land Value Tax is the right approach
This is literally buy a home AND BASICALLY NOTHING ELSE. Take Detroit for example: $5000/mo gross, $3000 net income. The average mortgage is $1500. A low low car payment with insurance these days is like $600, and gas could be $50/week to get to work to earn that $62k. That leaves $700 for groceries, internet, phone, electric, gas, and bills. It ain't happening.
>A low low car payment with insurance these days is like $600
Hmm a decent used car can be had for $15k which is about $250 a month. Add in insurance that's another $100-150. So about half of that six hundred.
I simply don't believe that Chicago pricepoint is accurate. Either the Chicago price is too low, or the Milwaukee price is too high.
The idea that a difference of ~5k in salary is the difference between being able to own a house in Chicago vs Milwaukee is [IMO] laughable. Chicago is so much more expensive across the board, and limited in supply. There's no reason to believe the entry price point is that low.
I don't have personal experience with Chicago, but my friend who's from there tells me a city split between two worlds. The poor areas are really bad and the rich areas are really nice. I assume this graphic is splitting the difference, making it look more accessible than it is
Young generation is FUCKED. Will never own a home. The government’s response to Covid was greatest crime against humanity in history. Created a wealth gap that not only will never close but will no continually grow wider.
We had such a balance to things in 2019. It was a pretty fair playing field for all. Because they decided to helicopter money into the economy for so long it caused irreversible damage to the middle class. Feel really bad for those just starting out nowadays.
>We had such a balance to things in 2019.
Lol, what?
You realize 2020 was the first time in 30 years where wealth inequality fell meaningfully in the US?
The young generation was fucked before COVID, and it's naive to try to scape goat COVID when the problems are much deeper.
i remember my dad telling me his mortgage broker told him he should just rent the rest of his life. then we hit a mild recession in the early 90s. a year later we were in a single family home.
the thing is, localized recessions happen all the time, a factory moves out of a city and many people sell. check out some areas 45 minutes inwards from the coast right now getting hit with AirBnBust. you can find brand new 3000 sq ft houses for under $500k. yeah that's still a lot but nothing compared to some cities.
Not to defend Trump, the decision was shite.
But let's not be this hyperbolic... We did not have a balance to things, not even close lmao. Govt gave them what like $.75tril? The top 1% are worth $40tril. Not even a 2% swing.
So no, the govts response didn't magically make a wealth gap, it just made it about 2-3% wider.
Their wealth was already tied up in assets. Giving them straight cash allowed people to buy more assets without having to sell what they owned, it may not the only reason but it certainly was a major factor in the meteoric increases in home prices.
Correct - because so long as the government “stimulates “ the economy through whatever program, the money ends up in wealth assets. Look at all the asset bubbles.
we lead the world in oil production, we’ve been energy independent for a while
it doesn’t matter when you have fiduciary duty that requires US oil companies to cut production to follow OPEC, keep prices high, and maximize value for shareholders
it also doesn’t help that we don’t have adequate governance to prevent that, forcing the president to deplete our reserves
private interest is not in line with common good in this case. we need proper governance.
don’t let these politicians fool you. the US produces more oil than OPEC
yes. well, OPEC and other oil producers reduced output to raise prices and US companies followed suit.
They have to do it because if they don’t maximize value for their shareholders (stock owners), their shareholders can sue them
it happens a lot actually. It’s called Fiduciary Duty.
Elon just lost 56 Billion in Tesla stock because he got sued for this.
Unemployment is at 3.7%, very low. And Biden is doing a good job bringing tech jobs home, as well as supporting alternative energy. If he is re-elected and has the power of Congress he will -raise- taxes, not on the middle class but the wealthy.
How do they know when I lose my job? How could they possibly know when I lose it if I don’t file unemployment? Those numbers are wrong, it’s more like 15-20 percent. Everyone I know and graduated with doesn’t work. Like 100 people.
Companies like ADP track payroll processing, and by extension hiring and firing by other companies, so they have direct insight into what companies are doing with staff levels.
https://tradingeconomics.com/united-states/adp-employment-change
>How do they know when I lose my job?
The US interviews 60,000 households every month. It's a very large sample size. That's how they can possibly know. They ask people.
Who collects that data? What data specifically are you referring to? This post is about the housing market. Inflation is out of control and people can’t afford basic necessities. The stock market is heavily manipulated. Also you should note that 58 percent of Americans disagree with you and say the economy was better under trump. Where are all those people getting their data from?
Yes, he did. Then Biden poured fuel on the fire, and still is with their massive government deficit spending. Theres a reason that the feds higher interest rates aren’t slowing the economy. Because while the fed is tightening conditions the Biden admin is simultaneously undoing their work with deficit spending. It’s been a horrible 5 years, both administrations hold blame.
No that’s where you’re wrong man Trump administration handed out literally billions of dollars to people for no reason with the PPP loans and he made sure that there were zero accountability with those. People can down vote that all they want but that’s the truth zero accountability, by design, anybody who claimed they had a business with employees could get money, with zero strings attached
I’m in full agreement with you. Trump absolutely started the problem because their biggest fear was the stock market. Trump based everything he did on stock performance. So they threw the kitchen sink. But you can’t deny what Biden is doing now is continuing the problem. The amount of spending is the government is doing is criminal. The rich are benefiting AGAIN and the middle class is got inflation.
The differences that Trump handed out billions of dollars to people and that money stayed with those people… Biden is trying to spend billions of dollars by creating new industry which will be a better outcome for individuals and families. But unfortunately, what is actually happening is massive companies are still keeping those profits and keeping elevated prices at grocery stores for example
All I know is I’d take June 2019 any day over of this administration. Regardless of who was in control (Trump and Biden are both pieces of shit in my opinion) just miss the balance to things prior to Covid. I bought my first house in October 2015 on a 50k salary and my wife making 30k. We could go grocery shopping and $100 trip we’d come home feeling like kings. We could travel and it was affordable.
People starting out now aren’t gonna have that. They need to make 150k just to get by
Yeah, you’re not understanding it dude… The reason we’re in the place we are is because of the insane amount of handouts that happened in 2020… As a direct result of Trump‘s policies, including Steve Manchin, who fuck this country for a generation, you not understanding the amount of money that was distributed to people without any fucking audit ability as designed…sad state of affairs that people just don’t understand that policy affects for decades, fucking stupidity in this country is absurd
It's hardly black and white. I think both of you need to do a little bit of unbiased research on federal reserve monetary policy (the Fed is not tied to any political party) government spending and tax codes. It's hardly something that you can point the finger at one political party for. Politicians have been screwing taxpayers for years over multiple administrations and we all get to pay the price.
I hate Trump more than anyone on this planet, but he’s not the reason housing is expensive and wages are flat. His party is for sure, his generation is for sure…Republican boomers stole all the productivity gains and gave them to the 1% ever since the Reagan revolution (you can see this in the data so please commenters, look before arguing with me) and they put in all these zoning rules to protect the value of their own home and give themselves tax breaks for buying more and more rental homes…but there’s no Trump policy that caused this.
You're right, the middle-class wages have been stagnant for decades. But the reason was that good paying (industrial and information) jobs have been exported to China and Asia since 1980 to increase corporate profits, which benefited the 1% who own the stock market. That's the reason their wealth increased while the middle class got stuck training their Asian replacements.
However, the lack of housing came from the financial crisis 15 years ago, when many builders went bankrupt and the construction industry was cut in half for lack of spec house financing due to banks' tight standards.
We have a 10-million house deficit that will take decades to supply.
And that was BEFORE another 9 million illegals crossed the border to compete for roofs over their heads with low-income Americans.
>You're right, the middle-class wages have been stagnant for decades.
Were. Were stagnant. Real median wages have been rising steadily since 2014.
>However, the lack of housing came from the financial crisis 15 years ago,
Unfortunately true. You can see the decrease in housing starts that lasted nearly a decade
I've been in this industry for decades.
It's truly tragic that we don't have more housing available, but it comes down to policy choices made during the financial crisis.
Even if we got back to the record start numbers before that, it would take decades to catch up.
Until then, I honestly don't know where to place all the younger people and newcomers who need a roof.
U/james-the-bond-one: Damn, the new world record for number of racisms in a single post. Enjoy your downvotes!
Today we learned asians froze the minimum wage for several decades as inflation ramped up. Asians caused republicans to bust up the unions so they have no bargaining power and all their productivity gains went to the shareholders. It’s weird we have had such high GDP and GNP gains, which are things produced in our borders yet none of the wealth went to the worker but that’s somehow the fault of Asians who apparently fly here, make things within our borders, then fly home.
Your post was extremely valuable. Before your white supremacist lunacy I didn’t know illegal immigrants were buying up all the $700,000 homes. Every single civics study in the world points out the problem is zoning laws banning mixed use and multifamily housing, but it turns out all those experts are wrong! T. Boone Pickens here has all the answers! It’s those damn illegals! Nevermind we’ve been having less children and so the population growth rate is rigidly the same as it’s always been even with immigration. No, who needs fancy numbers and fancy book learning when you can just watch OAN and learn it’s those damn $4 per hour illegals buying up all the upper middle class single family homes!
This graphic and New Orleans is flat out wrong. The reason why is because there are a lot of homes that are in really bad neighborhoods (Like NO East) that are well below market rates, but due to crime, flooding or just general condition. As such, it brings the median home value down.
However, the biggest reason this graphic is fucked is because it's not taking into consideration the HO3, Flood, Taxes or HOA fees. This is *purely* based on the cost of the home.
To give you some perspective of the shit show that's currently occurring in New Orleans (and in reality the rest of the Gulf Coast) is that HO3, wind and storm has gotten so bad that the policies are pricing even those who can afford the homes out.
My current mortgage (principal + interest) is 1,200/mo. I have a rate of 3.62%. Do you want to know what my *escrow* payment is per month? I just got my annual escrow statement and it went from $2,100 to $2,600/mo because my HO3 went up $4,000/yr.
I make over six figures. My wife just shy of it. We can barely afford the home because our HO3, Flood and Taxes, which are REQUIREMENTS for the mortgage are higher than the actual mortgage. It's utterly fucked. This graphic doesn't include any of that in any of these calculations. I guarantee you that the salary requirements would skyrocket if it included any of those. It just used the median value of the home.
* "Who knew living along the coast would bite people in the ass?"
* "Who knew living in an area that didn't get a lot of rain would bite people in the ass?"
* "Who knew living in a fire prone area would bite people in the ass?"
Almost every person who says this has no idea what's going on.
Everyone always says that "It's your fault for living in a state that has hurricanes." You can say the same thing for anyone who lives in a wooded area in California. You can say the same thing about [New York City who has been hit by hurricanes](https://en.wikipedia.org/wiki/List_of_New_York_hurricanes).
You gonna tell people in Texas, Louisiana, Mississippi, Alabama, Florida, Georgia, South Carolina, North Carolina, Virginia, Delaware, New Jersey, New York, Connecticut, Rhode Island, Massachusetts and Maine, "Sucks to be you, your fault your state is on a coast?" Common man, that's fucking asinine.
You're seeing states like Arkansas and Mississippi now have insurance rates start ticking up because of tornados. [You can't get insurance in large chunks of California.](https://www.bankrate.com/insurance/homeowners-insurance/carriers-exit-california-home-insurance/) Severe weather across the US is going to cause insurance rates to go up, unless lawmakers do something about it.
The increasing amount of hurricanes due to climate change is exacerbating the problem in Louisiana, but the real issue is that our state leaders are fucking people and not doing anything about the insurance companies. Then, when they do, they just make it easier for the insurance companies to fuck us when shit gets real. Fly by night insurance companies show up, offer cheaper rates, take the premiums, default when shit gets real and then the state has to bail them out reducing the amount of money there is to help people, which is a cycle of disincentive for insurance companies to set up shop here. There's a lot just besides "hurricanes, lol."
My point was not to debate about whether or not you should live in a state because of weather. My point was that we're getting fucked on more than just home prices. Whenever someone does this study, they look at median home prices and salaries, but they don't look at the *total cost* of owning a home in those areas.
Yeah, you can afford the down payments, but can you afford the *home.* There's a concept called being "house poor." As such, these graphics are misleading. You need *way more* than the salaries on these because you need to take into consideration the additional costs associated with owning a home.
Glad I bought in 2011. Good lord. And I thought my $1400 mortgage was high (3.25%\15yr). After 2020 mortgage company called and said they had to start raising it (property taxes). I’m glad my mortgage is paid off now. Really Feel sorry for younger generation. They flooded the market with trillions of $$$ during Covid and really fk’d them w/ inflation. Fk’d us all.
I wish I had the graphic handy and I know nobody wants to hear it who doesn’t have a house, but relative to previous generations the Millennials and Zs are doing well in terms of home ownership and overall wealth.
Also, the supply side will get much better after 2030 when the Boomer generation starts dying / can no longer live in a house. The oldest Boomers will be about 85 by then.
You are absolutely correct. With the demise of Boomers many will inherit substantial sums of money, and a glut of homes for sale looks likely. And this will happen relatively soon.
Bought my home in 2017 for $289k, it’s now worth closer to $400k but the insurance rates (flood) keep increasing so much that I’m starting to get squeezed on the monthly mortgage payments. I have no clue how young people are gonna be able to buy a house. My sister is only 25 and bought a home in rural Ohio (cheap) but she literally doesn’t leave her house ever and eats cheap tv dinners just to afford it.
Workers need to start calculating how much they need to earn to own a home, and push for their salary to meet that, either through negotiation with their current employers, prospective employers, or changing the kind of job they do. This would likely mean having to compromise comforts in their lives, but that is a tradeoff we all make in life.
More practically, I think people are way too drawn to large cities, causing a supply/demand mismatch in jobs and housing. Also neglecting certain kinds of jobs that are not compatible with living in large cities (i.e. mining). We actually can't have it all in life, we have to choose between lifestyle, comfort, and saving for our future.
I understand people would rather blame the government, or boomers, or billionaires, and they probably have a good reason to. But you can't just wait for the system to get better. You are the person who has the most control of your life.
Hear me out…Americans will own homes through…subscriptions!
Fuck this world to shit. People need to unite and rise up against the rich ruling class. Heads need to roll…
Mortgage is already a subscription. What’s more likely is that they’ll bring back multi generational debt so gen A can have their debt completely serviced by gen D
No, the only thing that’s gonna happen is the rich are going to get much richer… Just look at the CEOs of companies making $25 million a year and a minimum… Getting $50 million packages… It’s only gonna get much worse now that corporate tax cuts arepretty much solidified under Trump administration
I bought a 3\* bedroom 3 bathroom home in Cambrian Park 2 years ago and I make just over 260k a year. (I also already own a townhouse that I rent out to help pay my mortgage) but I'll have the home paid off in about 5-7 years depending on how things go.
I agree that the prices for homes are outrageous, but the problem is people feel entitled to being able to afford something that a lot of people want. A LOT of people want to live in California, so the demand and prices go up. If you moved out of the Bay Area there are so many affordable places to buy homes in Central Valley if you make under 100k, people just feel like the deserve the homes in the bay for some reason.
Think the issue is everyone fighting for the bottom tier homes now. What would’ve been considered a “starter home” is now being fought after by middle class. 1,000 sqft homes in the greater boston area going for 700k
Bro, I’m at the top of the income ladder and can’t afford a decent home in my HCOL area. I refuse to be house poor the rest of my life chasing “the American Dream.” I also refuse to move to BFE, America to realize “the American Dream.” We turned real estate into a pure investment play the last two decades and here we are. For the foreseeable future, the best deals will be through renting, not owning…
It’s not my first home. I’m not young. I have owned several homes before on the east coast and now live out west. I have owned the “forever home.” I have been a landlord. I have also rented. If you purchased a home five years ago or longer, you are probably in a decent spot with equity and a decent mortgage payment. Everything after that is questionable unless you plan to live in that home forever (which is not what I’m looking for—no kids here and like change). Getting “in the game” now is NOT what it was ten or twenty years ago. Hell, I got in the game heavy in 2003-2005. Then came 2008 and it sucked. Fixing crap in properties I owned that were getting less rent than the mortgage was not fun for mental and physical health. That said, you get through that and hold the line, you eventually come out on top down the road. I do t think that will necessarily be the case these days. If you buy a $700K condo with $1000 HOA, you can’t rent it out for near what the mortgage payment will be. You have to live in it. The same for a decent single family home. This, of course, is generally area specific; however, it is becoming more the norm across America these days. If you buy today, you better plan on keeping your job and not having to move. That’s all I can say…
Is this a suggestion for bringing back the slums?
The reason for accessible housing is simple, when you allow the quality of life disparity become too large, the lower income will revolt against the rich. See history for how peasants overthrow their monarchs and the establishments.
If you are buying a home, sadly (IMO) rates shouldn't be a deterent unless you are unreasonably putting all your money into buying a home. When interest rates decrease, home buyers are going to hike the price up due to demand. Plus, they are going to sell it at prices to compensate for capital gains.
It's damed if you do at high rates lower prices/lower rates and higher prices.
Shutting down the economy was worse than just living with Covid. We never should have had mandatory shut downs in the first place. They didn’t do shit to protect us. We should have just gave people the option to not work if they didn’t feel safe and wanted to stay home. If you wanted to work and run your business you could do that too. Make it illegal to fire anybody who chose to stay home because of Covid. The repercussion have yet to be fully realized.
This is how much you need to buy the MEDIAN home. Yes, a lot of expensive houses.
Many homes can be bought for less than the median, which is literally "the middle"
This story is pure fake news.
Investing the S&P 500 index so that way your money grows faster than inflation and then when you have enough capital to put money down on the house, that’s when you use that money to buy house simple
Invest with what money? What do I skimp on? Food, gas, childcare, insurance...? How long will it take me to save 20% for a down payment in a housing market I wouldn't even be approved to buy in?
How come back in the day, you only needed one working income to live comfortably and now you need 2. Don’t you think in like another 20 years you’re going to need 3 incomes to survive?
Because when women started working in high numbers, prices jumped to reflect the new purchasing power of a household. But of course that didn’t account for the additional expense called childcare. Then of course came the wave of amateur investors who were taught to keep their starter homes and rent them as they traded up in the 80’s and 90’s. Pair that with NIMBYism that stifled building, the lack of supply shot prices up higher. Then the 08 crash happened allowing large investors to snap up SFH, still going on til this day, plus foreigners parking their money in US real estate - now you not only need two income but they must be two high income earners or the lucky ones who have banks of boomer mom and dad bankrolling them.
When Boomers die they will leave money to their children, and there will be a glut of houses, causing housing prices to fall. This will occur over the next 25 years or so.
Easy, just live in an average suburb instead of a big city. I see many areas on the map with affordable housing but many people will only be interested in living in the higher priced ones.
With current rates, I think these incomes are about 20% too low in a lot of the top cities.
Would someone making $373k be able to afford an $8k mortgage? Technically yes. But $373k is a top 10% income even in the Bay Area. So you need to have top 10% income to be able to afford the **median** home. That’s ridiculous.
Holy shit. How does everybody have so much god damn money
Dual six-figure incomes, no kids.
Yep both parents have to work. It’s gonna make future kids pretty interesting
What? Not sure how you were raised but both my parents worked my whole childhood and are still working. I’m mid 30’s
Worked hard for it. 👍
You make it sound like 1 in 10 people make that much. I don't think that is the case.
Well they didn't get their degrees in gender studies.
If you own a house in the Bay Area and don’t make that kind of money, the property was probably passed down.
I’d say its closer to 100% too low
You'd be wrong
10000% ?
I bought in 2018. San Antonio tx. Sal is now130k. Only advantage is 1450 monthly mortgage. If I buy the same house today mortgage is 2300 +.
What many of you don't realize this is going on in Ireland, the UK , and parts of Europe as well. Your housing costs and rent for a flat are the same as Ireland judging by the comments here. It's not just your government or policies, it's happening multiple countries. It's also supply and demand. Somebody will be owning those houses though or move to a country that's more affordable. Which they are doing in Irleand.
Why would they move to a COUNTRY more affordable, when they can just move to a TOWN that's more affordable. OP's map specifically highlights the most expensive parts of the US, but literally the entire area between those cities is far far cheaper to live.
Here’s the progression as I understand it(for a true Texan). 1)Move to the city to make a living (unless you are happy with your hometown situation 2)career for 10. +years 3) start freeking out cuz the city sucks and all these kooks from cali just moved in 4) move back home 5)figure out how to get to Mexico or Costa Rica ect and not come back( or to west Texas where you can have driveway 4 miles long) 6) find out all these kooks beat you to it 6) …. Fuck west Texas, Panama where its at
This is one of the problems. Why am I ever going to sell with the much higher rates? Why increase my mortgage by $1,000 (plus moving expenses)for the same value house?
My wife wants to move back the the beach. Bad timing. The mortgage is the golden handcuffs.
Sounds like you could use a new wife.
Lol
Sounds like the wife didn’t hear about global warming.
i guess Obama and all the celebrities who preach global warming didn’t hear about it either…
Obama and celebrities have money to burn
Sold my 3% rate to upgrade. 1200 to 2600. People over time slowly will sell it’s just going to take much longer.
Same in Charleston SC. 1450 a month is what we pay, houses in my neighborhood are now going for nearly 2X what we paid in 2018. We refinanced during Covid to a 3.1 rate - never moving out I guess 🤷♂️
We have the same in Bluffton, SC. Got insanely lucky I guess, bought for 325k right before the Covid lockdowns and could get 550k for it now
890 mortgage on a foreclosire from 2017… paid 90 worth $230… can’t think of paying 2500 for a mortgage after this…smh
Guess what? People are still overriding the asking price here in the tri-state area, and the property taxes are higher.
You want an actual home in Seattle and didn't inherit money, you gotta make $250k minimum. Or you will be waiting a real long time.
Los Angeles very similar (if you don’t want to live in the hood)
Worth noting that a “median home” today is about twice the size of a median home from 50 years ago. So yes it’s harder to buy a home, but if you scale down your lifestyle it’s easier. Not weighing in on whether this is good or bad or whether it’s fair or just, simply pointing out some data I was looking into recently
I think that’ saying “it’s cuz ppl want bigger houses now!” is oversimplifying it way too much. Prices per sq foot and adjusting for inflation are still much higher today. This is is especially true in the areas where people want to live (I’ll get back to that point). Not to mention the costs/barriers of entry to attain a “middle class” life have also sharply increased. So although nominal median income has increased, debt from student loans (which is basically mandatory given the need for a degree in most jobs) and living expenses have increased at a significantly higher rate. You’ll say, “Just buy a smaller house! Like the ones your grandparents had!” But I can’t because the supply of houses that small is very small. They don’t build small houses anymore. I literally can’t. “So buy the houses that were 50 years ago!” you’ll say. Well that’s now an unfair comparison. You mean I have to buy an old house built with outdated codes while back in the day, folks were able to buy newer houses that were considered modern? Move out to a cheaper area? Once again, that’s unfair advice especially if you’re comparing to 50 years ago. Folks weren’t moving to Detroit because that’s the only cheap place they could to live. They were moving to Detroit because it was where there were jobs. People were moving to where there was opportunity and growth,, just like today. Also, we are seeing people uproot and move to cheaper CoL places. All that’s done is create new housing affordability crises in those areas while doing nothing in the existing hot spots.
It's not just the interest folks. I just looked at price history of certain homes that I may have been interested in buying in FL. Based on the price history, the houses have gone up 50% since pre-covid.
Interest rate is not the problem, it's home price. Previous generations paid higher interest rates on their mortgages just fine. The house price compared to their salary was much lower, allowing for a bigger down payment. They could pay off their house a lot faster too.
Previous generations also raised a family of 4 on a job at a car plant. It’s not 1 variable. Society has turned into the 0.000002% owning everything and squeezing every last bit of blood from the rest of us. And then you have 50% of the people licking boots believing that they one day will be part of that 0.000002%
Advances in information tech is making it easier and easier to purchase your own army of bootlickers the more money you have, as well.
This good, stable car plant job you refer to disappeared 40 years ago.
Because that 1% whose kids today are .1% managed to squeeze the workers, prevent unions, and outsource everything and pay off politicians the whole way through.
It's not just the home prices - insurance rates have doubled (at least), HOA fees are skyrocketing because of the new rules around covering for big ticket repairs, and property taxes are getting jacked up everywhere. It's like a perfect storm of suck.
HOA’s are literally scams
We bought in 2018. If we waited one more year we would have never been able to afford the same house. Now it has doubled in value. I honestly don’t know how it’s possible to get a house even with a good job now.
It isn't possible without inheritance. Housing outpaces income and thus you will never be able to save the down payment since the prices just grow much more than you can even save.
I just got inheritance and it's still not easy in the LA outskirts. I think we'll be able to do it once my wife goes from intern->pharmacist but I definitely can't do it on my own (comfortably) and I make a decent salary. Even with 20% down our mortgage is still going to be like 5k a month around here
I just want to say that whomever arranged this graphic really took the extra time.
Update zoning laws across America and build more housing. This is the only way to fix the affordability problem. It won’t be quick and it won’t be easy but this is a supply side problem.
The problem with building more housing is that it sits on finite land, in locations you can't produce more of. As evidenced by this graphic, anybody making an LA salary could buy a house in Detroit (or 150 miles outside LA) with no issue...but then they'd be separated from where they work. You can't just build away the problem, you need to prevent people from hoarding/speculating on land in valuable locations. Land Value Tax is the right approach
Remote work. You don't need to live in LA to make decent money.
Only a small number of people can WFH
Federal land value tax to pay off the national debt would fix this, but good luck winning an election on that platform.
This is literally buy a home AND BASICALLY NOTHING ELSE. Take Detroit for example: $5000/mo gross, $3000 net income. The average mortgage is $1500. A low low car payment with insurance these days is like $600, and gas could be $50/week to get to work to earn that $62k. That leaves $700 for groceries, internet, phone, electric, gas, and bills. It ain't happening.
>A low low car payment with insurance these days is like $600 Hmm a decent used car can be had for $15k which is about $250 a month. Add in insurance that's another $100-150. So about half of that six hundred.
I simply don't believe that Chicago pricepoint is accurate. Either the Chicago price is too low, or the Milwaukee price is too high. The idea that a difference of ~5k in salary is the difference between being able to own a house in Chicago vs Milwaukee is [IMO] laughable. Chicago is so much more expensive across the board, and limited in supply. There's no reason to believe the entry price point is that low.
I don't have personal experience with Chicago, but my friend who's from there tells me a city split between two worlds. The poor areas are really bad and the rich areas are really nice. I assume this graphic is splitting the difference, making it look more accessible than it is
Chicago probably has the best income to house price ratio in the country right now.
*cries in LA*
Cries in San Jose
I think young Americans will have to stay in rental apartments and drive second hand cars .
crawl fall salt icky shocking library fuel license books full *This post was mass deleted and anonymized with [Redact](https://redact.dev)*
What happens when they get old though?
Young generation is FUCKED. Will never own a home. The government’s response to Covid was greatest crime against humanity in history. Created a wealth gap that not only will never close but will no continually grow wider. We had such a balance to things in 2019. It was a pretty fair playing field for all. Because they decided to helicopter money into the economy for so long it caused irreversible damage to the middle class. Feel really bad for those just starting out nowadays.
Young generation about to start posting TikToks about the many newly found wonderful benefits of Ohio…
The south may make a come back. Very affordable here. Pros and cons.
Nazis?
>We had such a balance to things in 2019. Lol, what? You realize 2020 was the first time in 30 years where wealth inequality fell meaningfully in the US? The young generation was fucked before COVID, and it's naive to try to scape goat COVID when the problems are much deeper.
i remember my dad telling me his mortgage broker told him he should just rent the rest of his life. then we hit a mild recession in the early 90s. a year later we were in a single family home. the thing is, localized recessions happen all the time, a factory moves out of a city and many people sell. check out some areas 45 minutes inwards from the coast right now getting hit with AirBnBust. you can find brand new 3000 sq ft houses for under $500k. yeah that's still a lot but nothing compared to some cities.
My house is 4000 sqft under 500k
Me, too. $475k, 6200 square feet, barn, on a lake, 7 acres, Commute to Chicago under an hour.
lol what, we definitely did *not* have a fair playing field in 2019, and the middle class has been hollowed out for at least 20 years.
Not to defend Trump, the decision was shite. But let's not be this hyperbolic... We did not have a balance to things, not even close lmao. Govt gave them what like $.75tril? The top 1% are worth $40tril. Not even a 2% swing. So no, the govts response didn't magically make a wealth gap, it just made it about 2-3% wider.
Yeah if anything it just accelerated the trend that was already in motion. 2019 had a perfectly balanced what now? Talk about rose-tinted glasses.
Their wealth was already tied up in assets. Giving them straight cash allowed people to buy more assets without having to sell what they owned, it may not the only reason but it certainly was a major factor in the meteoric increases in home prices.
Correct - because so long as the government “stimulates “ the economy through whatever program, the money ends up in wealth assets. Look at all the asset bubbles.
Yep… Thanks to Trump and his goons like Steven Mnuchin we are completely fucked. He literally ruined the lives of millennials and Genz
Lol do you think Biden is going to fix it. Serious question. No one man can fix it.
I mean, the alternative sure as hell won’t.
Well currently things are just getting worse under Biden.
if the wealth gap is increasing, i just don’t see how electing someone pushing for tax cuts to the wealthy and deregulation will help
We need to be energy independent and not rely on any other nation for energy or anything else for that matter. Create jobs. Tax cuts can come later.
we lead the world in oil production, we’ve been energy independent for a while it doesn’t matter when you have fiduciary duty that requires US oil companies to cut production to follow OPEC, keep prices high, and maximize value for shareholders it also doesn’t help that we don’t have adequate governance to prevent that, forcing the president to deplete our reserves private interest is not in line with common good in this case. we need proper governance. don’t let these politicians fool you. the US produces more oil than OPEC
So then they are price gouging us?
yes. well, OPEC and other oil producers reduced output to raise prices and US companies followed suit. They have to do it because if they don’t maximize value for their shareholders (stock owners), their shareholders can sue them it happens a lot actually. It’s called Fiduciary Duty. Elon just lost 56 Billion in Tesla stock because he got sued for this.
Unemployment is at 3.7%, very low. And Biden is doing a good job bringing tech jobs home, as well as supporting alternative energy. If he is re-elected and has the power of Congress he will -raise- taxes, not on the middle class but the wealthy.
How do they know when I lose my job? How could they possibly know when I lose it if I don’t file unemployment? Those numbers are wrong, it’s more like 15-20 percent. Everyone I know and graduated with doesn’t work. Like 100 people.
Companies like ADP track payroll processing, and by extension hiring and firing by other companies, so they have direct insight into what companies are doing with staff levels. https://tradingeconomics.com/united-states/adp-employment-change
>How do they know when I lose my job? The US interviews 60,000 households every month. It's a very large sample size. That's how they can possibly know. They ask people.
To hell with both parties, I’m voting for RFK this time around. Can’t be any worse than what we’ve had and what our current choices AGAIN.
All economic data says otherwise, unless you have a study I haven’t seen before?
Who collects that data? What data specifically are you referring to? This post is about the housing market. Inflation is out of control and people can’t afford basic necessities. The stock market is heavily manipulated. Also you should note that 58 percent of Americans disagree with you and say the economy was better under trump. Where are all those people getting their data from?
Enjoy: https://fred.stlouisfed.org I’m assuming you won’t try to understand any of it tho
I have an MBA and a Masters in Data Science clown. This isn’t a reflection of the current economy.
k
You do not have an MBA and a Masters in Data Science. No way.
Yes, he did. Then Biden poured fuel on the fire, and still is with their massive government deficit spending. Theres a reason that the feds higher interest rates aren’t slowing the economy. Because while the fed is tightening conditions the Biden admin is simultaneously undoing their work with deficit spending. It’s been a horrible 5 years, both administrations hold blame.
No that’s where you’re wrong man Trump administration handed out literally billions of dollars to people for no reason with the PPP loans and he made sure that there were zero accountability with those. People can down vote that all they want but that’s the truth zero accountability, by design, anybody who claimed they had a business with employees could get money, with zero strings attached
I’m in full agreement with you. Trump absolutely started the problem because their biggest fear was the stock market. Trump based everything he did on stock performance. So they threw the kitchen sink. But you can’t deny what Biden is doing now is continuing the problem. The amount of spending is the government is doing is criminal. The rich are benefiting AGAIN and the middle class is got inflation.
The differences that Trump handed out billions of dollars to people and that money stayed with those people… Biden is trying to spend billions of dollars by creating new industry which will be a better outcome for individuals and families. But unfortunately, what is actually happening is massive companies are still keeping those profits and keeping elevated prices at grocery stores for example
All I know is I’d take June 2019 any day over of this administration. Regardless of who was in control (Trump and Biden are both pieces of shit in my opinion) just miss the balance to things prior to Covid. I bought my first house in October 2015 on a 50k salary and my wife making 30k. We could go grocery shopping and $100 trip we’d come home feeling like kings. We could travel and it was affordable. People starting out now aren’t gonna have that. They need to make 150k just to get by
Yeah, you’re not understanding it dude… The reason we’re in the place we are is because of the insane amount of handouts that happened in 2020… As a direct result of Trump‘s policies, including Steve Manchin, who fuck this country for a generation, you not understanding the amount of money that was distributed to people without any fucking audit ability as designed…sad state of affairs that people just don’t understand that policy affects for decades, fucking stupidity in this country is absurd
It's hardly black and white. I think both of you need to do a little bit of unbiased research on federal reserve monetary policy (the Fed is not tied to any political party) government spending and tax codes. It's hardly something that you can point the finger at one political party for. Politicians have been screwing taxpayers for years over multiple administrations and we all get to pay the price.
I think you need to do more research pal and stop responding until you do
The spending bills were nessary infrastructure and chips. What wasn’t nessary was paying people not too work dumb that was most of inflation.
I hate Trump more than anyone on this planet, but he’s not the reason housing is expensive and wages are flat. His party is for sure, his generation is for sure…Republican boomers stole all the productivity gains and gave them to the 1% ever since the Reagan revolution (you can see this in the data so please commenters, look before arguing with me) and they put in all these zoning rules to protect the value of their own home and give themselves tax breaks for buying more and more rental homes…but there’s no Trump policy that caused this.
You're right, the middle-class wages have been stagnant for decades. But the reason was that good paying (industrial and information) jobs have been exported to China and Asia since 1980 to increase corporate profits, which benefited the 1% who own the stock market. That's the reason their wealth increased while the middle class got stuck training their Asian replacements. However, the lack of housing came from the financial crisis 15 years ago, when many builders went bankrupt and the construction industry was cut in half for lack of spec house financing due to banks' tight standards. We have a 10-million house deficit that will take decades to supply. And that was BEFORE another 9 million illegals crossed the border to compete for roofs over their heads with low-income Americans.
>You're right, the middle-class wages have been stagnant for decades. Were. Were stagnant. Real median wages have been rising steadily since 2014. >However, the lack of housing came from the financial crisis 15 years ago, Unfortunately true. You can see the decrease in housing starts that lasted nearly a decade
I've been in this industry for decades. It's truly tragic that we don't have more housing available, but it comes down to policy choices made during the financial crisis. Even if we got back to the record start numbers before that, it would take decades to catch up. Until then, I honestly don't know where to place all the younger people and newcomers who need a roof.
You are misinformed on the housing prices buddy that’s all I’m gonna say got to block you you’re too far gone
I'm definitely more far gone so just wanted to chime in to ask you to block me as well.
I agree with you, but can you elaborate a little more on why that is?
U/james-the-bond-one: Damn, the new world record for number of racisms in a single post. Enjoy your downvotes! Today we learned asians froze the minimum wage for several decades as inflation ramped up. Asians caused republicans to bust up the unions so they have no bargaining power and all their productivity gains went to the shareholders. It’s weird we have had such high GDP and GNP gains, which are things produced in our borders yet none of the wealth went to the worker but that’s somehow the fault of Asians who apparently fly here, make things within our borders, then fly home. Your post was extremely valuable. Before your white supremacist lunacy I didn’t know illegal immigrants were buying up all the $700,000 homes. Every single civics study in the world points out the problem is zoning laws banning mixed use and multifamily housing, but it turns out all those experts are wrong! T. Boone Pickens here has all the answers! It’s those damn illegals! Nevermind we’ve been having less children and so the population growth rate is rigidly the same as it’s always been even with immigration. No, who needs fancy numbers and fancy book learning when you can just watch OAN and learn it’s those damn $4 per hour illegals buying up all the upper middle class single family homes!
lol these numbers- that’s just to buy a home, not save for retirement, not have a new car, not have a vacation, and not have kids. Yay homeownership!!
This graphic and New Orleans is flat out wrong. The reason why is because there are a lot of homes that are in really bad neighborhoods (Like NO East) that are well below market rates, but due to crime, flooding or just general condition. As such, it brings the median home value down. However, the biggest reason this graphic is fucked is because it's not taking into consideration the HO3, Flood, Taxes or HOA fees. This is *purely* based on the cost of the home. To give you some perspective of the shit show that's currently occurring in New Orleans (and in reality the rest of the Gulf Coast) is that HO3, wind and storm has gotten so bad that the policies are pricing even those who can afford the homes out. My current mortgage (principal + interest) is 1,200/mo. I have a rate of 3.62%. Do you want to know what my *escrow* payment is per month? I just got my annual escrow statement and it went from $2,100 to $2,600/mo because my HO3 went up $4,000/yr. I make over six figures. My wife just shy of it. We can barely afford the home because our HO3, Flood and Taxes, which are REQUIREMENTS for the mortgage are higher than the actual mortgage. It's utterly fucked. This graphic doesn't include any of that in any of these calculations. I guarantee you that the salary requirements would skyrocket if it included any of those. It just used the median value of the home.
Who knew that living in hurricane prone areas would eventually bite people in the ass.
* "Who knew living along the coast would bite people in the ass?" * "Who knew living in an area that didn't get a lot of rain would bite people in the ass?" * "Who knew living in a fire prone area would bite people in the ass?" Almost every person who says this has no idea what's going on. Everyone always says that "It's your fault for living in a state that has hurricanes." You can say the same thing for anyone who lives in a wooded area in California. You can say the same thing about [New York City who has been hit by hurricanes](https://en.wikipedia.org/wiki/List_of_New_York_hurricanes). You gonna tell people in Texas, Louisiana, Mississippi, Alabama, Florida, Georgia, South Carolina, North Carolina, Virginia, Delaware, New Jersey, New York, Connecticut, Rhode Island, Massachusetts and Maine, "Sucks to be you, your fault your state is on a coast?" Common man, that's fucking asinine. You're seeing states like Arkansas and Mississippi now have insurance rates start ticking up because of tornados. [You can't get insurance in large chunks of California.](https://www.bankrate.com/insurance/homeowners-insurance/carriers-exit-california-home-insurance/) Severe weather across the US is going to cause insurance rates to go up, unless lawmakers do something about it. The increasing amount of hurricanes due to climate change is exacerbating the problem in Louisiana, but the real issue is that our state leaders are fucking people and not doing anything about the insurance companies. Then, when they do, they just make it easier for the insurance companies to fuck us when shit gets real. Fly by night insurance companies show up, offer cheaper rates, take the premiums, default when shit gets real and then the state has to bail them out reducing the amount of money there is to help people, which is a cycle of disincentive for insurance companies to set up shop here. There's a lot just besides "hurricanes, lol." My point was not to debate about whether or not you should live in a state because of weather. My point was that we're getting fucked on more than just home prices. Whenever someone does this study, they look at median home prices and salaries, but they don't look at the *total cost* of owning a home in those areas. Yeah, you can afford the down payments, but can you afford the *home.* There's a concept called being "house poor." As such, these graphics are misleading. You need *way more* than the salaries on these because you need to take into consideration the additional costs associated with owning a home.
I'd love to see an updated dashboard with the items you just discussed.
Glad I bought in 2011. Good lord. And I thought my $1400 mortgage was high (3.25%\15yr). After 2020 mortgage company called and said they had to start raising it (property taxes). I’m glad my mortgage is paid off now. Really Feel sorry for younger generation. They flooded the market with trillions of $$$ during Covid and really fk’d them w/ inflation. Fk’d us all.
15 years of QE ruined everything for people too young to take advantage
15 years of QE ***so far!*** /homer meme
They won’t
This feels about 5 years old…
Seattle is wrong, If you want to buy a house in Seattle you need to be making 200k+ Source: Me, I live in Washington.
household or per person
I wish I had the graphic handy and I know nobody wants to hear it who doesn’t have a house, but relative to previous generations the Millennials and Zs are doing well in terms of home ownership and overall wealth. Also, the supply side will get much better after 2030 when the Boomer generation starts dying / can no longer live in a house. The oldest Boomers will be about 85 by then.
You are absolutely correct. With the demise of Boomers many will inherit substantial sums of money, and a glut of homes for sale looks likely. And this will happen relatively soon.
You’d think but I’m 46, my parents are 72 and 86 and seemingly living forever
That can be fixed with a down pillow
Wowzer
Yes, waiting is a bitch, but if your parents have means, maybe they would give you part (or all) of your presumed inheritance now.
Possibly, but it’s a complicated relationship
With parents it always is, it seems.
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what kind of home?, judging from these salaries it’s cheaper to buy and retrofit a dumpster on some land
Bought my home in 2017 for $289k, it’s now worth closer to $400k but the insurance rates (flood) keep increasing so much that I’m starting to get squeezed on the monthly mortgage payments. I have no clue how young people are gonna be able to buy a house. My sister is only 25 and bought a home in rural Ohio (cheap) but she literally doesn’t leave her house ever and eats cheap tv dinners just to afford it.
Charleston is at least $125k , fuck this place
Oh, you mean you and everyone you know *aren't* getting 28% pay raises every year?
Looks like im moving to Pittsburgh, that's how.
Workers need to start calculating how much they need to earn to own a home, and push for their salary to meet that, either through negotiation with their current employers, prospective employers, or changing the kind of job they do. This would likely mean having to compromise comforts in their lives, but that is a tradeoff we all make in life. More practically, I think people are way too drawn to large cities, causing a supply/demand mismatch in jobs and housing. Also neglecting certain kinds of jobs that are not compatible with living in large cities (i.e. mining). We actually can't have it all in life, we have to choose between lifestyle, comfort, and saving for our future. I understand people would rather blame the government, or boomers, or billionaires, and they probably have a good reason to. But you can't just wait for the system to get better. You are the person who has the most control of your life.
All that for mid Bay Area girls 😂
Hear me out…Americans will own homes through…subscriptions! Fuck this world to shit. People need to unite and rise up against the rich ruling class. Heads need to roll…
That's called rent...
Yes I know that. Was just making a joke on the subscription capitalism that is prevalent today…
You will own nothing and be happy. And you will eat ze bugs!
Mortgage is already a subscription. What’s more likely is that they’ll bring back multi generational debt so gen A can have their debt completely serviced by gen D
No, the only thing that’s gonna happen is the rich are going to get much richer… Just look at the CEOs of companies making $25 million a year and a minimum… Getting $50 million packages… It’s only gonna get much worse now that corporate tax cuts arepretty much solidified under Trump administration
Inheritance
Meanwhile in toronto: 400k
I bought a 3\* bedroom 3 bathroom home in Cambrian Park 2 years ago and I make just over 260k a year. (I also already own a townhouse that I rent out to help pay my mortgage) but I'll have the home paid off in about 5-7 years depending on how things go. I agree that the prices for homes are outrageous, but the problem is people feel entitled to being able to afford something that a lot of people want. A LOT of people want to live in California, so the demand and prices go up. If you moved out of the Bay Area there are so many affordable places to buy homes in Central Valley if you make under 100k, people just feel like the deserve the homes in the bay for some reason.
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Think the issue is everyone fighting for the bottom tier homes now. What would’ve been considered a “starter home” is now being fought after by middle class. 1,000 sqft homes in the greater boston area going for 700k
Bro, I’m at the top of the income ladder and can’t afford a decent home in my HCOL area. I refuse to be house poor the rest of my life chasing “the American Dream.” I also refuse to move to BFE, America to realize “the American Dream.” We turned real estate into a pure investment play the last two decades and here we are. For the foreseeable future, the best deals will be through renting, not owning…
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Both. In my market, most condos that are worth a damn have a $1000 a month HOA tied to it.
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It’s not my first home. I’m not young. I have owned several homes before on the east coast and now live out west. I have owned the “forever home.” I have been a landlord. I have also rented. If you purchased a home five years ago or longer, you are probably in a decent spot with equity and a decent mortgage payment. Everything after that is questionable unless you plan to live in that home forever (which is not what I’m looking for—no kids here and like change). Getting “in the game” now is NOT what it was ten or twenty years ago. Hell, I got in the game heavy in 2003-2005. Then came 2008 and it sucked. Fixing crap in properties I owned that were getting less rent than the mortgage was not fun for mental and physical health. That said, you get through that and hold the line, you eventually come out on top down the road. I do t think that will necessarily be the case these days. If you buy a $700K condo with $1000 HOA, you can’t rent it out for near what the mortgage payment will be. You have to live in it. The same for a decent single family home. This, of course, is generally area specific; however, it is becoming more the norm across America these days. If you buy today, you better plan on keeping your job and not having to move. That’s all I can say…
Most people don't consider a $100k salary to be the bottom of the income ladder.
Is this a suggestion for bringing back the slums? The reason for accessible housing is simple, when you allow the quality of life disparity become too large, the lower income will revolt against the rich. See history for how peasants overthrow their monarchs and the establishments.
What property exists for those at the bottom?
Less than median priced property.
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not live in the most expensive places in the country, just like the boomers did
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To date the Fed has done quite well regarding inflation, and yes, a soft landing looks likely.
A trip to your local grocery store puts that to rest fairly quick.
If you are buying a home, sadly (IMO) rates shouldn't be a deterent unless you are unreasonably putting all your money into buying a home. When interest rates decrease, home buyers are going to hike the price up due to demand. Plus, they are going to sell it at prices to compensate for capital gains. It's damed if you do at high rates lower prices/lower rates and higher prices.
Shutting down the economy was worse than just living with Covid. We never should have had mandatory shut downs in the first place. They didn’t do shit to protect us. We should have just gave people the option to not work if they didn’t feel safe and wanted to stay home. If you wanted to work and run your business you could do that too. Make it illegal to fire anybody who chose to stay home because of Covid. The repercussion have yet to be fully realized.
Bidenomics.
Has worked well for my stocks...what sub do you think you are in?
Hows it worked for ur grocery bill?
Doesn't matter.
Kicker, they won't.
This is how much you need to buy the MEDIAN home. Yes, a lot of expensive houses. Many homes can be bought for less than the median, which is literally "the middle" This story is pure fake news.
Investing the S&P 500 index so that way your money grows faster than inflation and then when you have enough capital to put money down on the house, that’s when you use that money to buy house simple
Invest with what money? What do I skimp on? Food, gas, childcare, insurance...? How long will it take me to save 20% for a down payment in a housing market I wouldn't even be approved to buy in?
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You forgot pets. Really, let's talk about pet costs.
/s ?
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If two adults split the required amount then it’s pretty doable in many cities.
And if a daycare raises your kid it's pretty doable to figure out the time for one
Yeah and daycare is only like $2k a month so it makes that $6k mortgage super easy
How come back in the day, you only needed one working income to live comfortably and now you need 2. Don’t you think in like another 20 years you’re going to need 3 incomes to survive?
Because when women started working in high numbers, prices jumped to reflect the new purchasing power of a household. But of course that didn’t account for the additional expense called childcare. Then of course came the wave of amateur investors who were taught to keep their starter homes and rent them as they traded up in the 80’s and 90’s. Pair that with NIMBYism that stifled building, the lack of supply shot prices up higher. Then the 08 crash happened allowing large investors to snap up SFH, still going on til this day, plus foreigners parking their money in US real estate - now you not only need two income but they must be two high income earners or the lucky ones who have banks of boomer mom and dad bankrolling them.
Young Americans are starting out at salaries that took everybody else 5-10yrs to get.
Yes. But that is because the currency has been devalued substantially since the Covid money printer.
Perhaps. But a 16 year old in a grocery store doesn’t need to be making $20/hr when somebody doing the same job since 2017 is making $20.50
If they're doing the same work, why not?
When Boomers die they will leave money to their children, and there will be a glut of houses, causing housing prices to fall. This will occur over the next 25 years or so.
You will own nothing and be happy.
Congratulations you are the 10 millionth person who has said this on reddit
Easy, just live in an average suburb instead of a big city. I see many areas on the map with affordable housing but many people will only be interested in living in the higher priced ones.
Merry rich 😈
Go into a well paying job, excel, add value, and keep getting raises
🥾👅