What you need to earn to buy a house: CNBC

[MoodyBlues]

On my local news just now, they cited some statistics from a CNBC report about housing costs. I found the report, and it really underscores how wildly home prices vary across the US.

It only includes 11 cities, so it's far from a comprehensive list. But its point is to show how much you need to earn in order to afford a house of a certain price. It shows incomes needed if you're putting 10% down or 20%.

Having lived in two of the areas on the list, I couldn't help but notice that prices in a city proper in no way represent the actual housing market for the area. For example, its median home price for Dallas doesn't remotely reflect that of Carrollton (the North Dallas suburb where I owned a house). It's a lot less accurate than that here in LA! Prices here, from suburb to suburb, vary by millions. But it's a good guideline for those pondering buying a house.

 

[ocnbrze]

my friend just bought a house. it is a 2 story 4 bed 3 bath house that sits on a lake with its own pier. it has 4 acres of land.....he got all of this for $60,000!!!!!!!!!!! it is in idaho is the catch. i can't wait to hang out there in the summers.

thank god, i'm not in the market to buy a house. i was fortunate enough to inherit mine from my parents. Houses here are way overpriced if you ask me.

 

[olbriar]

Being a carpenter, I've made my way though life on the shirt tail of the housing market. It's been bullish to bare and back again a number of times through the years. (50+) For the last decade, at least in my area, there have been few to zero starter homes built. The trend has been toward attractive apartment complexes with their amenities for the young couples. The new homes have been mostly large living / entertainment monuments. I don't think the "own a home" is in the mindset of the starting couples or it's so far out of financial reach it isn't a consideration. I don't know how they will ever own without building equity in some sort of starter home and trading up as they go along. Sort of sad.

 

[MoodyBlues]

it is in idaho is the catch

Exactly! I'm sure there are good things about Idaho, but just the frigid winters alone would rule it out for me. That and no ocean.

Houses here are way overpriced if you ask me.

You're not kidding. It's sad that a lot of people who grew up here, are native Californians, have been priced out of the cities they grew up in.

Take my live-in helper for example. Like me, she grew up here in Arcadia, but will never be able to buy ANYTHING, not even a condo, here. (Well, unless she wins the lottery, or marries a rich guy.)

Meanwhile, people from other parts of the world come in, buy perfectly nice houses for 1-2+ million, raze them, and put up a gaudy McMansion in its place. Totally destroys the comfortable, established atmosphere of the neighborhood. Ugh.

The only good thing about it is that it causes our property values to go up. However, as I recently learned on NextDoor, it's a flat seller's market in my area right now:

Even though I'll never sell, I still like it when it's a seller's market, you know? Just something reassuring about it.

 

[MoodyBlues]

This is kind of related, so I'm adding it here instead of making its own thread.

This article, also from CNBC, says that 52% of Americans are 'middle class.' It also has stats for lower- and upper-class, and gives a breakdown of each group's income.

Its stats take into account various factors, such as household size. Obviously, $X may be great for a single person household, but awful for the Brady Bunch!

The article includes a link to a calculator you can use to see where you fall.

 

[MoodyBlues]

The prices now are crazy.

You're not kidding. The monthly report I heard on my local news said that prices in the San Fernando Valley increased by 36% OVER THE PREVIOUS MONTH!! For the first time, the 'valley' now has a median price of >$1,000,000.

 

[Eyes Fit]

A home is not for everyone, and not everyone should possess one. Builders construct what sells, and they construct condos and town homes for folks with lower incomes who nevertheless want to own property. A single-family home is not something that everyone can aspire to, and it is unrealistic to expect everyone to want to buy a home. Some people prefer to rent rather than own a home. The increasing social pressure to acquire property is impractical, especially for the ordinary 20-something with student loan debt.

 

[no one]

I just Columbused my neighbor's property.

 

[MoodyBlues]

A home is not for everyone, and not everyone should possess one. Builders construct what sells, and they construct condos and town homes for folks with lower incomes who nevertheless want to own property. A single-family home is not something that everyone can aspire to, and it is unrealistic to expect everyone to want to buy a home. Some people prefer to rent rather than own a home. The increasing social pressure to acquire property is impractical, especially for the ordinary 20-something with student loan debt.

I'm not aware of anyone being forced to buy a house if they don't want to!

As always, it's up to the individual whether to rent or own, or whether to buy a single-family house or a condo, etc. Speaking as a former renter who couldn't WAIT to be able to own a home, I hated paying rent. Every month it felt like that money was just going down the drain. But to each their own.

 

[MoodyBlues]

I just Columbused my neighbor's property.

Okay, you're going to have to enlighten me! What on earth does that mean?!

 

[MoodyBlues]

Did you manage to buy a house?

Welcome to Android Forums!

It would be helpful if you let us know who you're directing your question to.

 

[samantaZzz]

A lot of money, without any doubt

 

[MoodyBlues]

Most of my friends which bought their own houses did it only with the credit help. I guess there are not so many people able to save so much cash

You'd be surprised! Every week I receive glossy mailers from local Realtors showing pics and pricing info on houses they've recently sold, or have just listed. Almost every one of the 'sold' houses will say "all cash" sale. Here's a nearby house that sold recently, and although this one doesn't say all-cash, I'm sure it was:

The reason I say I'm sure it was all-cash is because of the type of house it is and the amount over asking they paid; it's the kind of house that routinely gets bulldozed the day after its ownership changes hands. Like mine would if I ever sold it. In its place will go a GIGANTIC McMansion like the one directly across the street from me, which replaced a beautiful, charming, NORMAL sized house. I watched it being bulldozed--took pictures, too. Sad....

Anyway, back to the point: there are plenty of cash buyers. Here in Arcadia, houses routinely sell for 6, 7, 10+ million dollars and they're all-cash deals. Who's buying them? People from various Asian countries. And a few celebrities.