[CT_Yank]

Originally Posted by SteveM85

That was Simon, not me.
Income is annual, a house may be a one-time purchase. If you make 150Kper and bought one house for 500 and lived in it for 10 years isn't that a great ration then? $1.5M in income to 500K.
I could be wrong, remember I have limited capabilities. No one ever confused me with an Ivy Leaguer.

Not sure what that has to do with it. It is much greater risk now as millennials paying 5x income. You have to hold that income much longer plus other costs have gone up astronomically as well. Was it you who told the Fairfield house seeker that she was crazy to think 130K gets 700k house? That is over 5X income. There you go. 700K is now a starter home in good town. Not normal.

[JayCT]

Originally Posted by CT_Yank

That is not true Steve. My parents bought home in Morris County NJ for 25k in mid 70s while dad made 10k as new grad. The usual has been 2.5 times income. By any legit source, homes have risen 115 % compared to 25% for income. It is all debt driven. C'mon

A couple things to note. You are thinking of what was the recommended income-to-home-price ratio that was an informal rule. That wasn’t necessarily what was the case for most people.

By the home price I’m guessing that you are talking the 1960’s when your parents did that. Morris County wasn’t the pricey desirable suburb back then that it is today. It was the boondocks so home prices reflected that. A $10,000 salary was big bucks then so your parents were buying in a cheap area for their income. You could do that today too. Jay

[tsek]

Originally Posted by CT_Yank

Not sure what that has to do with it. It is much greater risk now as millennials paying 5x income. You have to hold that income much longer plus other costs have gone up astronomically as well. Was it you who told the Fairfield house seeker that she was crazy to think 130K gets 700k house? That is over 5X income. There you go. 700K is now a starter home in good town. Not normal.

Millennials are committing to 5x income and I don't know how they're making it work. My best guess is they're getting lots of money from mom & dad. At 5x income you're house poor. If they have kids, daycare is going to put them deep in the red. It's easily $2500 per month in FFC.

Either wages rocket by 50% or something gives.

[SteveM85]

Originally Posted by CT_Yank

Not sure what that has to do with it. It is much greater risk now as millennials paying 5x income. You have to hold that income much longer plus other costs have gone up astronomically as well. Was it you who told the Fairfield house seeker that she was crazy to think 130K gets 700k house? That is over 5X income. There you go. 700K is now a starter home in good town. Not normal.

130 seems low for 700 but if your talking about income ratios to home values wouldn't you have to consider all the years of income? I'm just asking. Again, let's be clear, you're not dealing with a Rhodes Scholar here

[SteveM85]

Originally Posted by tsek

Millennials are committing to 5x income and I don't know how they're making it work. My best guess is they're getting lots of money from mom & dad. At 5x income you're house poor. If they have kids, daycare is going to put them deep in the red. It's easily $2500 per month in FFC.

Either wages rocket by 50% or something gives.

In FFC, mom and dad give more for down pay or pay cash, maybe inheritance, sold Tesla and Amz at highs, who knows

[JayCT]

Originally Posted by simonusa3

As far as retirement...I would not count Connecticut out of that equation.

I live along the shoreline, and there seems to be many people you meet MOVED to the CT shoreline to retire (mostly east of New Haven). To me at least, this seems strange? This was not the case many years ago. However, they all mention, that healthcare in some of the typical retirement areas are not nearly as good as in the middle-Atlantic/Tri- State area (Washington - Boston). Also, the concentration of big cities with all they have is close to CT. Add in the fact that if one chooses a state like Texas, Florida, or even AZ, these states are so huge it takes more than a day to even get somewhere other than were you live (12 hours across Texas - lol). In CT, retirees can be in 7 states in half a day, with coast, mts, cities, ...etc all within close reach.

As far as income to value, it was always hard to buy a home. I saw a example that in 1959 the average house was $20,000, and the average person made $75 a week (about $4000 a year).

Now that Connecticut no longer taxes retirement income under $100,000 for a couple and $75,000 for a single, I’m sure fewer people will be compelled to move in retirement. In fact it will make our state more attractive to retirees.

Remember too our state has some pretty nice retirement communities like the massive Heritage Village in Southbury and Oronoque Village in Stratford. Too bad the shoreline east of New Haven didn’t have something similar. I’d consider it when I retire. Jay

[JayCT]

Well apparently not all real estate these days have appreciated in value. Linda and Vince McMahon’s $4.9 million condo in Stamford’s posh Park Tower Stamford, just sold for only $1.95 million. Yikes, that’s a steep discount. Jay

https://westfaironline.com/real-esta...counted-price/

[SteveM85]

Originally Posted by JayCT

Well apparently not all real estate these days have appreciated in value. Linda and Vince McMahon’s $4.9 million condo in Stamford’s posh Park Tower Stamford, just sold for only $1.95 million. Yikes, that’s a steep discount. Jay

https://westfaironline.com/real-esta...counted-price/

The Mcmahons losing 3M is like you and I losing 300. We’d get over it in 5 minutes

[simonusa3]

Originally Posted by JayCT

Now that Connecticut no longer taxes retirement income under $100,000 for a couple and $75,000 for a single, I’m sure fewer people will be compelled to move in retirement. In fact it will make our state more attractive to retirees.

Remember too our state has some pretty nice retirement communities like the massive Heritage Village in Southbury and Oronoque Village in Stratford. Too bad the shoreline east of New Haven didn’t have something similar. I’d consider it when I retire. Jay

Quite true. A big part of figuring retirement costs is taxes on retirement income. Years ago there was a book out called "Places rated Almanac". It stated that much of the cost of one place vs another place comes down to taxes and home costs. If Connecticut is at least competitive in those to areas, I think many more would retire here. Lets face it, in terms of climate, while there are many warm areas to move (FL, CA, AZ, SC...etc) CT is still far milder in the cold season than many areas of the USA. I saw this a few years ago and thought it was interesting:

[Basementbarandgrill]

Originally Posted by tsek

Millennials are committing to 5x income and I don't know how they're making it work. My best guess is they're getting lots of money from mom & dad. At 5x income you're house poor. If they have kids, daycare is going to put them deep in the red. It's easily $2500 per month in FFC.

Either wages rocket by 50% or something gives.

Kids are living at home longer, they can save for a beefy down payment to make that 5X income house affordable. Along with that, the popularity of multi-generational living is growing and will continue to do so. Grandma and Grampa like the idea of aging in place. Mom and Dad like having free babysitters and a larger house with separate living spaces.