this post was submitted on 06 Oct 2024
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[–] [email protected] 53 points 8 months ago (7 children)

Who are the half that make the 7 figures required to not spend half your income on housing?

Did they just fully make up have the surveyed population?

[–] [email protected] 29 points 8 months ago (1 children)

$1400/mo, the rough figure from the article, is 30% of $56k/yr. If you made $1m, 30% of that would give you $25,000/mo. How do you figure?

[–] [email protected] 11 points 8 months ago (1 children)

Median household is apparently 80k now. 30 percent of that monthly is 2,000.

In my city 2,000 will rent you an infested place with water damage from the flood a year ago. But if the city comes around you have to pretend not to live there or else they'll kick you out.

[–] [email protected] 4 points 8 months ago (5 children)

Don’t forget that household income is everyone in the house. So if you are all poor college kids with part time jobs making 15-20k a year your household income will still be close to or at the median, even though each of you are individually really poor

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[–] [email protected] 16 points 8 months ago (5 children)

If you move outside the city, shit gets much, much cheaper. Mortgages are easily $1,750/mo ($300k, 30yr, tax + insurance included). If your goal is to live in NYC or Seattle, you will be spending quite a bit on your chosen lifestyle. If your goal instead is to buy/rent an affordable 2-3br home, there are lots of options.

[–] [email protected] 57 points 8 months ago (2 children)

Ugh. I get really annoyed when people defend egregious housing prices with the "just live in a shitty place, in a shitty location, in the middle of a food desert, far from economic opportunities, social interactions, public transportation, and you can afford it" argument

[–] [email protected] 18 points 8 months ago

Lol yeah exactly.. Its such a brain dead take.

[–] [email protected] 20 points 8 months ago (1 children)

"If you live where the jobs aren't, you can afford a house."

Cool.

[–] [email protected] 4 points 8 months ago (1 children)

The trades (electricians, etc) pay well and are in demand basically everywhere. The jobs are out there.

[–] [email protected] 12 points 8 months ago (1 children)

Ah, so this has become, "if you don't want to pay high rent, get trained to be an electrician, then move out to some shithole, then buy a house."

Let's see... this says that trade school to become an electrician costs between $3000 and $19,000, so enjoy that debt- https://www.bobvila.com/articles/electrician-school-cost/

This says it then takes nine months to two years to get your trade school training, then 4,000 to 12,000 hours as an apprentice to become an electrician- https://www.indeed.com/career-advice/career-development/how-long-does-it-take-to-become-an-electrician

You're right, this is totally a doable plan for most people to pay less rent money. Eventually.

[–] [email protected] 8 points 8 months ago* (last edited 8 months ago) (1 children)

Lets put these all together then:

  • You have a 2-3 br home you pay $1,750/mo mortgage for
  • You are an Electrician Apprentice, making a median salary of $57k
  • You have very reasonable student loans between $3k and $19k (your number)
  • You will be a full blown electrician in 2-7 years (your number, 4,000 to 12,000 hours, full time)

I don't know about you, but that all sounds quite reasonable. That is a nice home, student loans that are very affordable and will be paid off soon, a good job, and a promising career path. You own your home, meaning you are building equity. And, hell, you can even rent out one of the bedrooms to vastly lower that already reasonable monthly mortgage.

This may not be what you specifically want in life, but it is a very achievable goal and a comfortable life for the average man.

[–] [email protected] 10 points 8 months ago (1 children)

Yes. Very reasonable. You just need to find a way to afford rent and food for you and your kids for those seven years, at least a couple of which you won't be earning the sort of money you could earn to move out to Shitsville, Nowhere and buy a modest home.

I'm guessing your next piece of advice would be: just don't have kids. Because women can just vacuum those back up once they come out.

[–] [email protected] 2 points 8 months ago (8 children)

Huh, it's like planning ahead isn't even a thing.

Once the kid situation hits then yeah, it's harder to make planning decisions, people's options are limited at that point. I agree we should help people in those circumstances, but I also think we should help people make plans which avoid painting themselves into a corner.

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[–] [email protected] 20 points 8 months ago (1 children)

Move far, far outside of populated areas and you don't even need a mortgage.

[–] [email protected] 5 points 8 months ago (1 children)

Also known as The Unabomber Rental Mitigation Technique.

[–] [email protected] 3 points 8 months ago (1 children)

Kaczynski was unironically right about a number of things, criminal activity aside.

[–] [email protected] 2 points 8 months ago (2 children)

Like avoiding high rent by living in a shack in the woods!

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[–] [email protected] 14 points 8 months ago (2 children)

Where are you finding a livable home for 300k? I live in a rural area, and I love it here, but you're never going to find a house for 300k unless you're willing to put another 150k into stripping it down to the studs and renovating it.

[–] [email protected] 4 points 8 months ago

They are rare but they are out there.

I was able to find a home for about $320k about 15 miles from the city. I searched for two years. My interest rate is shit. But hey, I have a house!

It was fully renovated.

I'm not saying the market isn't shit. Because it is due to fucking investors.

I know I am lucky to have a job that pays well, even though it hasn't kept up with inflation. I know that this isn't the case for everyone and I'd be willing to take a hit on my home value if it meant others could buy a home too.

But my neighbors don't feel the same way.

[–] [email protected] 3 points 8 months ago

Detroit Metro area. That's what I did. Went from a $3400 rent to a $1800 mortgage. House is in great condition but I do have plans to remodel it, no rush.

[–] [email protected] 12 points 8 months ago (2 children)
[–] [email protected] 13 points 8 months ago

And the cost of time spent commuting 2-3h each way to and from work every day

[–] [email protected] 6 points 8 months ago (1 children)

The last time we moved we actually did this. Kept us from paying more bills to commute longer. I highly recommend figuring out your monthly gas/mass transit bill and adding that to the price of places you're comparing.

[–] [email protected] 4 points 8 months ago

Also, commuting time. If you have young kids but you don't get home until 7:30, you're going to spend very little time on them. And possibly a lot on child care.

But even if you're not a parent, long commutes, by car, by public transit, or both can be pretty stressful after a long day at work.

[–] [email protected] 10 points 8 months ago (1 children)

I wonder if it's net or gross.

Besides, it's not seven figures, just mid-six figures necessary for that.

[–] [email protected] 8 points 8 months ago

The typical "30% on income" advice is based on gross, not net. Which is about 93,000 a year for the median mortgage payment right now.

[–] [email protected] 7 points 8 months ago

I lived in a place that cost 800$ a month for a room in the bay area and I was taking home more than 60% of my income working full time.

It's doable, and it doesn't mean only rich people aren't rent burdened...

[–] [email protected] 7 points 8 months ago

Maybe roommates?

[–] [email protected] 6 points 8 months ago

Just to point out, with the median mortgage at $2349 a month, it's more like you need a household income of $93,000 a year (probably closer to $100k with utilities and other expenses) for your housing costs to equal 30% of your income. That is steep for a lot of people, but still much more attainable than 7 figures. A quick Google says that makes up around 37% of US households as of 2022. Still doesn't quite add up to their figures, admittedly, unless "nearly half" is doing a lot of work in that sentence.

[–] [email protected] 6 points 8 months ago (1 children)

You don't need remotely close to that income level. 200k household income will get you a nice home at a reasonable price.

[–] [email protected] 13 points 8 months ago (1 children)

Oh yeah just 2.5 times the median household income, no problem. Hey while we're here can I have a million dollar loan?

[–] [email protected] 5 points 8 months ago (1 children)

Never said it was inexpensive. It's just not nearly as expensive as you all make it seem. 15% of the country does hit this number and 25% are close.

Y'all out pretending nobody is buying houses.

[–] [email protected] 9 points 8 months ago (1 children)

No no we know people are buying houses. It's just hard to compete when that person is Black Rock and they bought an entire development before it even hit the market.

[–] [email protected] 6 points 8 months ago* (last edited 8 months ago) (2 children)

Corporate owners own less than 4% of single family homes.

It's not okay and that does put pressure on the market. We should strive to minimize that.

It's not the hellscape you want it to be. $2500/mo still buys you a 2400sq ft home in a nice neighborhood in moderate CoL areas. Again that price is out of reach for many, but home ownership rates for Gen Z is higher than millennials when adjusted for age. Most of America own their homes.

[–] [email protected] 2 points 8 months ago (5 children)

Well that's a flat out lie. CoreLogic straight up tells anyone willing to read that investors own 20-30 percent of housing in every state. And they're 30 percent of the purchasing for houses on the market every month.

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