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re: The Medium income Amercan Family now earns 1/2 the income needed to buy the avg home.

Posted on 3/13/25 at 11:00 am to
Posted by Eric Nies Grind Time
Member since Sep 2012
25507 posts
Posted on 3/13/25 at 11:00 am to
Are you just trolling? Change careers?
Posted by GoCrazyAuburn
Member since Feb 2010
41136 posts
Posted on 3/13/25 at 11:01 am to
quote:


It does pay pretty well. That's what we are all saying. Even then it's not enough.


I tried. He doesn't understand basic concepts.
Posted by RollTide4547
Member since Dec 2024
4723 posts
Posted on 3/13/25 at 11:01 am to
quote:

It likely does pay well and what you refuse to understand is that it's not enough in today's market.
Then make a change. Change locations, change careers or BOTH.

quote:

And, what career is going to pay more in a more rural area?
My wife is a kindergarten teacher making over 60K for 9 months work. Together we would make 120K (we both have masters degrees though mine is not in education).
Posted by RollTide4547
Member since Dec 2024
4723 posts
Posted on 3/13/25 at 11:02 am to
quote:

Are you just trolling? Change careers?
Absolutely. If you can't get what you want with what you're doing, do something different. Adapt and overcome.
Posted by RollTide4547
Member since Dec 2024
4723 posts
Posted on 3/13/25 at 11:02 am to
quote:

Well, that isn't very grown up of you.
but that stupid gif was? Practice what you preach or stop preaching.
Posted by Eric Nies Grind Time
Member since Sep 2012
25507 posts
Posted on 3/13/25 at 11:03 am to
How is that overcoming? You are saying give up and move to the sticks.
Posted by DrrTiger
Gulf of America
Member since Nov 2023
2544 posts
Posted on 3/13/25 at 11:03 am to
quote:

Amazes me their lack of ability to grasp this. Just going off the numbers, they roughly have to compromise double, and these people are acting like that is an unreasonable thing to point out and say needs to be addressed


The point you seem to be missing is that the houses people were buying 30 years ago weren’t usually that desirable back then. They’ve become more desirable as communities have expanded, new schools and commerce centers being built, etc. Where I live now, for example, used to be considered the boonies. Now it’s a more desirable place with a lot of different shopping and restaurant options that used to not exist. That’s true in most suburban areas around the country.
Posted by GoCrazyAuburn
Member since Feb 2010
41136 posts
Posted on 3/13/25 at 11:03 am to
quote:

but that stupid gif was? Practice what you preach or stop preaching.


I was agreeing with your deal. Sorry that offended you. You seem to be a sensitive sort. No wonder you're so defensive here.
This post was edited on 3/13/25 at 11:04 am
Posted by RollTide4547
Member since Dec 2024
4723 posts
Posted on 3/13/25 at 11:04 am to
Miss understood. Thought you were being sarcastic, therefore I apologize sir.
Posted by SlowFlowPro
With populists, expect populism
Member since Jan 2004
477263 posts
Posted on 3/13/25 at 11:05 am to
quote:

My wife is a kindergarten teacher making over 60K for 9 months work. Together we would make 120K


And?

It's not enough
Posted by GoCrazyAuburn
Member since Feb 2010
41136 posts
Posted on 3/13/25 at 11:05 am to
quote:

The point you seem to be missing is that the houses people were buying 30 years ago weren’t usually that desirable back then.


Again, nobody has said otherwise. Why do you keep trying to make arguments that don't exist?

Do you not understand that to get that same level of undesirable house, it takes roughly double what it did then?
This post was edited on 3/13/25 at 11:07 am
Posted by RollTide4547
Member since Dec 2024
4723 posts
Posted on 3/13/25 at 11:07 am to
quote:

How is that overcoming? You are saying give up and move to the sticks.
You're saying you want a nice house that can't be obtained in your current location with your current career.... I'm saying if you can't do it there, do it somewhere else. Or stay where you're at and complain.
Posted by NC_Tigah
Make Orwell Fiction Again
Member since Sep 2003
139071 posts
Posted on 3/13/25 at 11:08 am to
quote:

the sacrifice is greater now than in the past
No. But it may well be greater than it was 5yrs ago
Posted by Eric Nies Grind Time
Member since Sep 2012
25507 posts
Posted on 3/13/25 at 11:08 am to
I just don't think it's unreasonable to have the expectation that two adults with good jobs could maybe be able to afford an 1800 sq foot home.
Posted by thunderbird1100
GSU Eagles fan
Member since Oct 2007
72338 posts
Posted on 3/13/25 at 11:09 am to
quote:

Looks like a nice home.


Yeah nothing says nice like big lots LVT flooring and the cheapest stainless steel appliances off the showroom floor to "virtue signal"

quote:

Bet if you looked 60 miles to the south you could find a similar home for half as much


Great, so just tell all those people to go move to the 4th generation farmer and destroy the quality of life they desire, good job

This isnt hard to recognize the fact housing is just currently in a very unaffordable state for most, and that's sad. This used to be an American dream and its turned into an American nightmare for most at this point. Simply put. The solution to this isnt just boomer yell at everyone "well go live in the sticks and drive 3 hours a day to and from work". Thats just stupid. I'm sure some people love to be in their car forever and away from their family they may hate, but a lot of us dont.

quote:

Young people want everything without sacrificing anything.


You act like this is only affecting "young people" it affects everyone, anyone trying to buy a home right now or in the past 2 years really. Again, our own house was worth $300k back in 2020-2021 and just last year it could have sold for 50% more than that at HIGHER interest rates. Thats absolutely insane and just goes to show theres a real housing issue that hopefully can get fixed over the coming decade. It shouldnt be a pipe dream for the hardworking dual income couples out there to afford a home in a SUBURBAN area. Again, this was always the american dream, now most folks simply cant afford that. Just a simple fact right now.

quote:

I drive 67 miles each way.


And let me guess, there's probably little to no real traffic. Let put you on a 67 miles commute in metro atlanta and see where your sanity is after that for a week. Hint - this is why its going to be a hard sell to anyone who values a decent life.

My dad moved down to New Orleans for work back in the early 80s. Him and my mom moved into a nice 2 bed maybe 1000-1100sq-ft condo in a nice area, which he bought for about $30k in the early 80s (less than $100k today). In 1985-86 they built a custom single family 3 bed 2200-sqft house, with a lot of really nice luxury touches throughout in Metairie for about $125k-$130k. This is about say $360k-$375k in today's money.

They built that house and paid for the mortgage on only his income, and he wasnt some high flying exec or something, he just had a good solid corporate job that paid decently enough. Just a guy with a good enough paying job who was able to build a very nice decently sized house with some luxury touches on just that income in a suburban area...and very much able to afford that on just the 1 income.

This is pretty much a far long pipe dream today. Here's your $450k 1400sq-ft formal rental house with cheap LVT floors now in suburban areas. By the way, you probably cant afford that unless both you and your wife are working, which means if you have a kid or two, well now you need to find daycare for them...how much is that? Oh average price is like $1000+/mo? Our daycare just upped their prices by $200/mo per kid because they were well under market value for our area. Our kid went from $312/wk to $360/wk. Our close friends who have 2 kids there are now paying $700/wk for 2 kids in childcare. This is not some fancy daycare, they dont even speak english...

Things have definitely changed you might not know of because you never lived it, but plenty of people have to live that these days. It's pretty fk'd if you bought a house just 4-5 years ago and need to move again and housing cost will be 75-100% higher than oyu pay now simply due to rapid home appreciation and higher interest rates. Not sure about you, but not a ton of people are making 50-75% more than they were just 4-5 years ago.
This post was edited on 3/13/25 at 11:18 am
Posted by RollTide4547
Member since Dec 2024
4723 posts
Posted on 3/13/25 at 11:11 am to
quote:

It's not enough
Maybe not where you want to be. 10K a month would allow a 4K payment. At 6% you can buy a 840K home. That's a REAL nice home in a rural area. Again, sacrifices.
Posted by Eric Nies Grind Time
Member since Sep 2012
25507 posts
Posted on 3/13/25 at 11:13 am to
May I ask when the last time you went house shopping was?
Posted by HubbaBubba
North of DFW, TX
Member since Oct 2010
51895 posts
Posted on 3/13/25 at 11:15 am to
quote:

No, the problem is that #1 now costs $900/month instead of $90.
#3 is now $250k at 7%.
#5 is 500k, etc.

People are stuck at #2 and #3 because the cost of #4 is unattainable for most people.
location has a lot to do with it, but if you consider a home as an investment, the $165k investment 25 years ago, is reasonably $530k now, and that is a return of only 4.75%.

According to Grok AI, the typical 'good' investment strategy is to obtain average results of between 7%-8% annually. If a home grew in value at that rate, the cost would be between $960k - $1.23 million, not $530k.

I understand being young and stupid and thinking I'll never have wealth because it was such an abstract idea ("work hard, save and when you're old you'll be wealthy) but the difference is that I had a good mother who owned and ran two businesses and taught me how to manage and grow my investments and I didn't deviate from that responsibility to myself and my family.

When I purchased my home at $365k rates were between 7% - 8.5%. I put in the $65k in carried over equity from the sale of my previous home and secured a Libor interest payment only loan that, over the ten years averaged between 2.5% to 3.75% interest. Some months,the payment was as little as $600 on a nearly 4000 sf home with 3 car garage and inground pool. At the same time we opened an investment account that we put $2k a month into. This is outside of our normal 401k investments.

When it came time to write a new mortgage, we grabbed a 6% loan with an interest only option, then when rates fell to 2.5 -3.5%, we secured another interest only loan at 3%.

In the meantime, we've plowed over $600k into that investment account and still owe the original $300k on the house, still making interest payments, still putting $2k in the investment account monthly, and that account is now worth between $1.6 - $1.8 million depending on market fluctuations while the house is valued at around $825k-$875k, with equity of almost $600k.

Nothing is stopping anyone from using this strategy as part of their investment planning. It takes dedication.

But I didn't see the big picture until I was in my late 30's / early 40's. Had I deployed the investment strategies I used over the last 25-27 years when I was in my early 20's, I would have retired at age 55 instead of age 68.
Posted by RollTide4547
Member since Dec 2024
4723 posts
Posted on 3/13/25 at 11:16 am to
Sounds to me like you can't have what you want, where you want to have it and now you want to complain. I don't care whether you get what you want or not. I'm just saying you have to make sacrifices in life. Believe you mentioned playing music earlier (if not I apologize for the confusion). If someone wants to be Great at the acoustic guitar, they are going to have to sacrifice hundreds if not thousands of hours practicing. If they want it bad enough, they'll sacrifice. If they don't, they won't.
Posted by GeauxBurrow312
Member since Nov 2024
6273 posts
Posted on 3/13/25 at 11:17 am to
The retirees in this thread clearly dont understand the cost of living


Median Income = $40k, take home $34k. No one is saving up for downpayment on that

Lets say you make 2x median, $80k. Take home $64k

$250k house with 20% down would be a monthly payment of about $1900 a month including utilities. Thats 35% of take home pay. The commute will cost you another ~10% of your take home pay on gas for being out in the boonies

For a single person:
healthcare will run you another ~10% of your take home
used car + insurance + gas (non commute) will run you another ~15% of your take home
groceries will run you another ~8% of your take home
10% for retirement

That all adds up to 88% of your pay if you make 2x the national median
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