re: The math for buying a home no longer works, per WSJ

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unless they move to the worst corners of the Hood.

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And it isn’t like times past where those in the worst neighborhoods were all trying to “pick themselves up by their bootstraps”.

Nowadays, you’ll fricking die in those areas.

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My wife and I lived on a budget of about $2300/month.

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I can only speak for myself, but that doesn't even cover our mortgage and car insurance

Our first home with mortgage, insurance and property taxes was $2,100. One paid off vehicle and the other had a reasonable note of $350/month.

I am not saying it can't be done, I am just saying it is getting increasingly more difficult - and not because people are spending stupid amounts - but because the cost of living is outpacing earnings.

For example, when we moved, our homeowners went up from $2400/year to $3,400/year (not insignificant and I had to shop around to get that rate). I was casually browsing the other day and HO rates are closer to $6k a year just 18 months later. Some quotes were upward of $7,200 so more than a 100% increase in 18 months. Meanwhile, my salary increased by 10% which is GENEROUS and not the case for most.

Again - just one of many examples I could give.

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Because he's acting like that type of guy. He mentioned a down payment of $15K on his first house. Assuming that he put a 20% down payment on that house

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That covered 5% down payment and closing costs.

The goal was to qualify for a conventional loan which was "better" than what most people do (3% or 0% down).

I got a 80/15 loan.
Interest only on the first tied to LIBOR.
I don't remember the exact rate on the second. 8.5% on 240/120 terms I think.

I paid interest only on the first and threw extra money on the 2nd. Paid it off in about 3+ years.

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Average US rent is ~$1700. When you factor in food and essentials, water, electricity, etc., you cannot live off of $2k a month.

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We have 3 bedroom apartments at $1800/month.
2 roommates is $600 a head.

Can't find 2 decent people?
2 bedroom apartments $1400/month. $700 a head.

How do you people get dressed in the morning?

I could hand you the perfect fricking cup of coffee and you would complain that it was too hot before it got too cold.

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He is going to come back at you with the roommates thing.

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You were 20 years old once too.

At least you still have fricking sense.

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At least you still have fricking sense.

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You're right, I recognize the radically different economy we live in in 2023 vs 2019.

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You might be waiting for a long time. And when prices do drop, they very well may be (significantly) higher than they are today.

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Definitely a possibility, but I'll also have more stashed away for a down payment. Granted, what we're paying for our apt is kinda obscene, but we wanted a nice place (choices) .

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You're right, I recognize the radically different economy we live in in 2023 vs 2019.

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Roommates were invented by the 1990s too.

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I agree, you should buy below your income level. There are houses around the country that can be afforded. They are not in desirable areas, however. Owning a home must be a huge priority to live in a lot of these areas.

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That's not true in all parts of the country. If that's true for you....either you need to move to a different metro area entirely or manage your expectations.

What you consider desirable may need to change. Or you may need to look into desirable neighborhoods in other cities.

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Areas like this usually adopt a "good enough" attitude.

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Yep. Not every place is awesome. And most awesome places are stupid expensive.

The reality is that "good enough" might be all some people can afford - especially first time homebuyers. You can build equity in "good enough". You can fix up "good enough". And you can be happy with "good enough" if you wanted to.

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Most of the money and brain power has long gone, the town is dying slowly, and your access to amenities are going to be limited.

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That's a stereotype for a lot of decent towns with upward mobility that tend to fly under the radar.

Don't let the secret out, but there are a lot of ways to carve out your niche in second tier cities like Memphis, Cleveland, Baton Rouge, Birmingham, Tulsa, etc. They aren't places you'll brag about to your high school friends, but they are good alternatives to HCOL areas if you are in the right field and don't "need" all the amenities that you'd find in a place like Miami, Chicago, New York, Philly, Dallas, Phoenix, etc.

Baton Rouge has a shockingly strong industrial base for its size. They have a long list of issues, but those big plants, factories, and refineries have pulled a lot of people into the middle class (and sometimes beyond) over the past 120 years.

Same with Lake Charles. It's basically what Hill Valley was in Back to the Future Part 2, but there are a lot of lucrative jobs there, a lot of affordable houses, and a lot of very nice people.

Memphis is the definition of "good enough". Much of that place is dirty, ugly, unfashionable, obsessed with Elvis, and some of it is downright dangerous. But it's a "good enough" city to attract FedEx, International Paper, and Auto Zone's headquarters. There are more Fortune 500 companies there than in the entire state of Louisiana, and the costs of living are incredibly low.

Don't dismiss a town because it isn't fancy or isn't where you imagined yourself living.

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Also, god forbid you lose your means of income when there are 3 major supplier of jobs in the area.

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Then you'd have to move. Moving sucks. It's not a death sentence. Save your moving boxes and blankets until you get your forever home.

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Take Alexandria for example. Dying a very slow death. A small number of people in the city care, but they are outnumbered by a fat, aging, dying populace that refuses to cede power to the remaining people who have a brain cell or two.

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I don't really like Alexandria (or towns like it) either, but it's not below me to live there. I'd take a job there and find a decent home if I needed to.

I've lived in towns I didn't like before. I found a way to be happy there.

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You can buy a modest house in the only safe area of town (west of jackson, south of macarthur) for around $225k. That's doable, especially if you have a network and a strong resume to get one of the limtied jobs. But unless you have that strong network, you're sorta fricked.

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You'd have to move if that happened. Again not the end of the world. You can pick a higher cost of living city like Houston or Chicago if it makes you more comfortable. But keep in mind that those towns are so massive that an alternative job in the same metro could easily be an hour in another direction - which means if you lost your job, you might be considering a relocation anyways.

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Two hospitals that will turn you from sick to healthy. But there aren't 5 hospitals.

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How many hospitals do you need? Do you plan on visiting hospitals often? I'm assuming you aren't retirement age yet and are fairly young.

You definitely should have access to health care and seek out the best primary care physicians in an area. Unless you've got a serious long term illness, you won't be traveling to see specialists very often.

Access to primary care physicians is limited in some parts of the country. That's a legit concern in some areas. But Alexandria is more than large enough where you'd have your choice of primary care physician and access to most specialists if you needed.

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The best restaurant in town would be mid-tier anywhere else.

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Food is always a subjective and highly regional thing.
I've lived in Westmoreland county PA before, so I know it's not impossible to live in a place with a shitty food culture. Or in a smaller town where restaurants all seem to close on the same day every week.

Just have to learn to cook for yourself or drive a little if you really want a special meal.

Healthy food is a necessity. Excellent restaurants with world class service isn't really a necessity. Areas with a wide variety of top tier amenities like that are going to cost a bit more.

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You'll always be a few years behind when it comes to fashion, and it used to be this way with music as well

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That's a luxury, not a necessity.

Really shouldn't be a priority for a young person trying to build wealth and find a long term SO. To each his own....but I've found it far easier to slip under the radar and not have the latest and greatest clothing or phone in the more blue collar areas that I've lived.

And a major life hack seems to be to find a significant other who shares your values around finance and building wealth. Avoid the women that don't appreciate the value of a dollar. Avoid friends who spend like drunken sailors. Life's easier that way.

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The customer service everywhere will be shite because there aren't as many solid options to choose from, and even in the most reputable establishment, the wages are still depressed. And they aren't getting any better.

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100% true. Customer service is worse across the board now than even just a few years ago. That's not exclusive to places like Alexandria.

Some other things you'll probably want to consider when trying to identify a place to live:

You'll probably want to be within a couple of hours of a decent airport. Not necessarily a hub unless your work requires heavy travel. But one with at least a few nonstops to major hubs so you can visit friends/family and they can visit you.

Probably going to want to be convenient to a decent grocery store. Dollar General works pretty well for the staples - but you can get pretty much anything you need at a Wal Mart or Kroger these days. A specialty indie store or a Whole Foods would be a bonus, but not required for most people.

Internet - most of us use streaming and work from home sometimes. You'll want decent internet. Most places have this, but some rural areas don't. Worth researching before you buy.

You'll want to avoid areas especially prone to flooding or natural disasters. But you can never completely eliminate the risk of something like a fire, tornado, earthquake, or some other act of God.

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We have 3 bedroom apartments at $1800/month.

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who is "we"?

eta: i have to admit i think high rent is a bit exaggerated by some people. I have 2/2 (to myself) in a somewhat desirable 'hood for $1400/month. it's kind of old and shitty though but i love the location and size.