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This is an apples to oranges comparison altogether with this home ownership versus renting ideology.
Most people in Washington can afford to own a home but they don't want to just as the people in Manhattan don't want to, or the people in South Kensington or Notting Hill in London don't want to, or the people in Singapore don't want to, or the people in Kowloon of Hong Kong don't want to, or the people in central Tokyo don't want to.
Philadelphians show more confidence that they're going to be there long term by home ownership, Washingtonians would rather pay more in rent per month instead of saving more by mortgages (which if there is a good to great credit score & low interest (as the entire country is seeing a decline in interest rates) will be marginally less than any per month rent payment for a decent area)).
Hell this trend is even taking afoot in a suburban minded city like Houston, where there's an incredible demand for paying more monthly for rent in the Inner Loop ($1,200-$1,800 a month average) than paying a mortgage ($800 a month outside the Beltway) and owning a house altogether. There's a reason why multifamily units are issuing building permits at more alarming rates than ever before.
Apartments are making a strong debut in the United States, especially amongst the younger populations that only want to rent versus buying.
Huh?
There are various reasons why someone would choose not to buy in DC. One reason is that they only expect to be there temporarily. Once they've got the hot DC job on their resume, they'll leave for cheaper pastures. This is the case for at least half of the people who move there (in my estimation). Then there's a large segment that would love to own a home in the District, but could only afford the absolutely most undesirable parts of the city. They could take their skills to a less competitive job market and live high on the hog.
Making $150K doesn't give you a whole lot of options in DC, SF or NYC the way it does in Philly. There are so many people who completely crush you on the payscale in those cities.
This is an apples to oranges comparison altogether with this home ownership versus renting ideology.
Most people in Washington can afford to own a home but they don't want to just as the people in Manhattan don't want to, or the people in South Kensington or Notting Hill in London don't want to, or the people in Singapore don't want to, or the people in Kowloon of Hong Kong don't want to, or the people in central Tokyo don't want to. I say they can afford to own a home because the median income, per capita income, as well as family income is not dramatically less (annually) than the median price of a home in Washington ($125,000 versus $360,000) that's very much do-able on that annual income.
Philadelphians show more confidence that they're going to be there long term by home ownership, Washingtonians would rather pay more in rent per month instead of saving more by mortgages (which if there is a good to great credit score & low interest (as the entire country is seeing a decline in interest rates) will be marginally less than any per month rent payment for a decent area)).
Hell this trend is even taking afoot in a suburban minded city like Houston, where there's an incredible demand for paying more monthly for rent in the Inner Loop ($1,200-$1,800 a month average) than paying a mortgage ($800 a month outside the Beltway) and owning a house altogether. There's a reason why multifamily units are issuing building permits at more alarming rates than ever before.
Apartments are making a strong debut in the United States, especially amongst the younger populations that only want to rent versus buying. My situation? I live in a house in Arlington that my parents bought as an investment, they decided not to live here & I took them up on the offer of using it instead of letting it sit empty collecting dust.
It may be an apples to orange comparison but to me it shows how invested citizens are in a city. If our Government were to finally end all the Industrial complexes and Government expansion, what would happen to DC's economy? Are people renting because they are only there to make their money from the Government bubble?
Why are all the rich people in DC interested in leasing property instead of investing?
Do they not trust the housing market in DC? Do they expect it to burst in a mean way eventually?
Houston and Chicago are much closer to Philadelphia in that they have nearly 50% Homeownership rates.
This to me shows that the COL is more accurate to the economy in these cities.
Philadelphians see less in migration & out migration than Washingtonians. They're living there for the long haul (or a longer haul altogether) compared to their Washington counterparts. I used the word confidence because Philadelphians (as according to migration data) move less than Washingtonians by far. In that sense, it makes more sense to buy instead of rent. Right?
Hell it's common to see someone whose been living in Philadelphia all their life, like their father before them, & their grandfather before them and so on. Washington in contrast is 50% transient, people not from here now living here.
Quote:
Originally Posted by 2e1m5a
It may be an apples to orange comparison but to me it shows how invested citizens are in a city. If our Government were to finally end all the Industrial complexes and Government expansion, what would happen to DC's economy? Are people renting because they are only there to make their money from the Government bubble?
Why are all the rich people in DC interested in leasing property instead of investing?
Do they not trust the housing market in DC? Do they expect it to burst in a mean way eventually?
Yeahh I don't think it has anything to do with government. People don't move to Washington thinking "oh hey, I'm here for a few years until the government starts contracting". They wouldn't relocate to a job where they don't have a security in thought like that in the first place.
Every real estate market is segregated. No, a home in PG County is not going to cost the same as a home in Potomac, but that misses the point (just like a home in Howard Beach is not going to cost the same as a condo in Tribeca). If you're going to make it an apples-to-apples comparison, you'd have to compare high end to high end and low end to low end. And both the highs and the lows are higher in DC than they are in Philadelphia.
And I don't know where you're getting this whole thing about investors "outbidding each other for homes they will rent to low income/section 8 tenants" from. The high prices in the District, Arlington, Alexandria, and much of Montgomery County are the result of people making good salaries.
Properties on the high end cost more, because there are far fewer liveable areas for families, and higher salaries so they start out bidding. Or atleast ones that don't want to be around ghetto people(compare the demographics of NoVa to Maryland). Maryland does not even start to get nice until you get near the part that touches NW DC, IMO.
Investors outbid each other so long as there is a profit to be had. You can buy a home in PG county, fix it, and sign up with section 8 and the government more or less pays most of the housenote, with the tenants making up the meager difference.
Quote:
Most people in Washington can afford to own a home but they don't want to just as an ample amount of the people in Manhattan don't want to
Uh no, it is the other way around. Most people in Washington can't afford a home, just like Manhattan.
People rent when it is a cheaper option than owning. The median household in DC brings in 61k a year. That is too little to afford a home at the median of 450k. Hence why people rent. Roughly 50% of the cities households would have to own in the ghetto, if they want to buy anything.
Philadelphians see less in migration & out migration than Washingtonians. They're living there for the long haul (or a longer haul altogether) compared to their Washington counterparts.
Yeah...because the economy is not as dynamic. Philadelphia suffers from a lot of brain drain. I would say Boston suffers from that a bit too, but not nearly as bad as Philly. I would guess that HBS keeps many more of its graduates in Boston than Wharton keeps in Philly. There are so many alums from my high school in NYC (I attended a magnet in Philly) that we have mini-reunions here and in DC. There's a general consenus that opportunities at home are lacking.
Making $150K doesn't give you a whole lot of options in DC, SF or NYC the way it does in Philly. There are so many people who completely crush you on the payscale in those cities.
LoL.
Dude DC's median household incomes are lower than Manhattan and SF. Sorry but government is not as lucrative as Silicon Valley or Wallstreet. Keep dreaming.
Dude DC's median household incomes are lower than Manhattan and SF. Sorry but government is not as lucrative as Silicon Valley or Wallstreet. Keep dreaming.
Government Industrial Complexes are not sustainable. When you have a metro with little economic output, like DC, it is not sustainable.
Properties on the high end cost more, because there are far fewer liveable areas for families, and higher salaries so they start out bidding.
Eh, no. Trust me, this is my life.
You can't simply make a bid you can't afford. Either you can afford it or you can't. Housing can be tight in a Mexican puebla, but that does not mean that the final bid will be $765K. It will be the high end of whatever that market can support, which I suppose would be $355.46 (sarcasm). When you go to open houses in DC or Brooklyn, the couples walking in are Stanford-educated doctors, lawyers and bankers with a joint income of $600K. Those people hardly even exist in Philadelphia. It's much more of a middle-class city.
Quote:
Originally Posted by LakeShoreSoxGo
Investors outbid each other so long as there is a profit to be had. You can buy a home in PG county, fix it, and sign up with section 8 and the government more or less pays most of the housenote, with the tenants making up the meager difference.
Okay, but who's doing that? I mean, are you reading articles about this on DCMud, DCHousing Prices, Greater Greater Washington, Prince of Petworth, Lydia DePillis' housing complex? Or are you just assuming that this is the case?
When you go to open houses in DC or Brooklyn, the couples walking in are Stanford-educated doctors, lawyers and bankers with a joint income of $600K. Those people hardly even exist in Philadelphia.
LOL, ok I'm done. It seems you have some agenda or something.
Doctors, Lawyers and Bankers with joint incomes of $600K don't exist in the Philly area?
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Government Industrial Complexes are not sustainable. When you have a metro with little economic output, like DC, it is not sustainable.
