How do people afford $800k - $1.2 million homes? (Austin, Howe: student loans, attorneys)

[N. Olikee]

Originally Posted by kbchitown

Some people simply can afford to live in multi-million dollar homes, whether it be old or new money. Sometimes we fail to see outside our own situations...such as "I can afford X amount when it comes to a house...but considering down payment, property taxes...I can't understand how "other" people can afford more! You are purchasing your home based on your means...and that "mean" is proportionately larger when your annual income is 1 million +. It's all a matter of scale.

Ditto that!

[donnaaries]

Originally Posted by gdu

If you look at the incomes of all the people in Austin and costs of the homes in the area, the numbers don't work. Either tons of people were born into money here or are paying more than most prudent investors would recommend on housing.

This doesn't make sense because not everyone who lives in Austin owns their home. The average income includes people who rent, too.

[centralaustinite]

Originally Posted by JL

Don't be surprised if some of the people with these million $ homes are doing some illegal biz...not all of them have earned their living legally. Just my 2 cents.

Please! Do the words : google, yahoo! dell, cisco, facebook, ebay, paypal, Texas Instruments, National Instruments, Hart Intercivic, etc mean anything to you?

I know people who live in Austin who have earned their millions directly from those companies! And many more, plus smaller supplies, manufacturers, etc. that I won't name because it might identify individuals.

[FueledByBlueBell]

Originally Posted by centralaustinite

Please! Do the words : google, yahoo! dell, cisco, facebook, ebay, paypal, Texas Instruments, National Instruments, Hart Intercivic, etc mean anything to you?

I know people who live in Austin who have earned their millions directly from those companies! And many more, plus smaller supplies, manufacturers, etc. that I won't name because it might identify individuals.

This is true. Once you see the exec pay structure it does make sense but I am still amazed that there are so many in what feels like a small city. I'm less about how because I get this, but more 'how many'!

[sinking]

Originally Posted by FueledByBlueBell

This is true. Once you see the exec pay structure it does make sense but I am still amazed that there are so many in what feels like a small city. I'm less about how because I get this, but more 'how many'!

It's not that small of a city. Fourteenth largest city in the nation.

[centralaustinite]

Originally Posted by FueledByBlueBell

This is true. Once you see the exec pay structure it does make sense but I am still amazed that there are so many in what feels like a small city. I'm less about how because I get this, but more 'how many'!

They get their options, their executive pay packet, (maybe even got lucky and were part of a super-successful IPO) AND then they move to Austin!

To enjoy our fabulous lifestyle, etc etc.

Running through the folks I know who have million plus houses, maybe one quarter are from central texas, the rest are from elsewhere who just ended up here!

Or they ARE from here but left the state for an education, ended up in the San Jose area at just the right time and eventually came back to Texas!

[ImOnFiya]

Originally Posted by sinking

It's not that small of a city. Fourteenth largest city in the nation.

That's true. However, for the last 40+ years, Americans have lived in a 'suburban' nation. Austin's suburbs are not very large vs. the center city population. When people generally reference the size of cities, they often conflate the city AND the suburbs together. For example, I am visiting my Mom in Cincinnati.

From Wikipedia: "The population [of Cincinnati] within city limits is 296,943 according to the 2010 census,[4] making it the state's third-largest city. According to the 2010 Census Bureau estimate, the Cincinnati metropolitan area had a population of 2,130,151 making it the largest MSA in Ohio and the 27th most populous in the United States."

Practically everybody lives in the suburbs. A small minority now lives in the center city. But, probably 1.995 of that 2.130 metropolitan population would tell you they're from Cincinnati [even if they lived in Northern Kentucky (the south suburbs)].

[curious1111]

I think that there are MANY false assumptions made in this thread. Not everyone that can afford a house in that range is from California, a trust fund baby, rich from stock options, over extended with mortgage debt, etc.

I am the sole earner in our house. I am the second in our extended family to go to college...no silver spoon. Just worked hard, very hard. Our household income is >$700k/year, and we live in a $1mm home. We felt that we were actually fairly conservative in our purchase. I think that plenty people in the home price range posted here, have similar stories to ours.

No bragging, no ego, just feel the need to represent/defend us self-made types....

[ImOnFiya]

Originally Posted by curious1111

I am the sole earner in our house. I am the second in our extended family to go to college...no silver spoon. Just worked hard, very hard. Our household income is >$700k/year, and we live in a $1mm home. We felt that we were actually fairly conservative in our purchase. I think that plenty people in the home price range posted here, have similar stories to ours.

No bragging, no ego, just feel the need to represent/defend us self-made types....

Defending by not saying anything..nothing on what you do, how you do it, or how you spend it..just vague "Tea-Party"-like slogans. I know one thing: anyone spending $1mm on a home is not being "fairly conservative" in their purchase.

"Fairly extravagant", maybe! But, this is Texas, the home of big things. Don't downplay it - OWN it!

[GreenPlastic]

Lots of people retire here. They don't work but they buy homes, sometimes very expensive ones.