Living in DFW makes me feel poor, while same salary would quite high back in MO (Dallas: middle-class, real estate)

[unseengundam]

After living in Richardson about 15 months, I still can't get over how poor I feel with all rich people around. I used to live back in Columbia, MO. Where according City Data median household income was $37,051. When I got offered my first job offer in Garland for $58k, I was like OMG that is a whole lot of money, $20k more than usual income. I could buy most new houses back in Columbia, MO without any problem (median house price is $139,900 there). I remember doing look up of stats in Garland, revealing median household income was only $45,924 and median house price is only $117,000. Heck the city of Dallas has even lower median income and housing at $120k. I thought that put me well in the upper-middle class with tons of money to spare in DFW.

So, I ended up quickly accepting the offer and moved into DFW. I was expecting I would have no problem buying nice brand new house in Garland. Well, after moving here I realized $58k sure isn't alot. Garland's nice new houses are all North of 190 (Bush Turnpike) going for $400-$500k+. Rest of Garland is old with few new enclaves still going for $300-$400k. Far above the supposed $117,000 median price! Then next door in Plano the median income is $71,560 and median housing is $196,200. Another city I looked for housing was in Allen. There median income is $82,001 and housing about $177,000. But everything in west Allen I swear is over $400k+. I won't even bother mentioning how high its in Frisco. In end I am living in an apartment now ,saving up money. These day I tend try to save more money than spending since let me feel bit more wealthier having cash around. Like guy at work who paid $12k cash for new AC / Heating unit or $5k for new Mac Book Pro.

This definitely seems put me under way median household income in most of the newer and nice areas around DFW. Not mention all people driving new fancy Luxury cars. Back in Columbia, MO all I saw like 1 new Benz in my entire life, no other luxury cars anywhere in sight. The fastest selling cars were used cars, new Kias,and Hyundai. In fact, I am driving that "nice new" Hyundai Sonata I bough back in Missouri. Here in DFW, I get made fun of for driving a Hyundai. My co-worker bought himself a “cheap” $36,000 fully loaded Honda Accord and this was his 3rd new car in 4 years! Our parking lot does have tons of Lexus and other high priced brands. Seems like most people in DFW (well at least at work) are interested in “keeping up with Jones” even though some them don't earn more than 80k.

I know I am not really poor, but I definitely feel poorer than felt back in Columbia, MO. I think I am developing "I am poor" or inferiority complex. Almost every single day I sure feel like a poor person who definitely can't afford those luxury cars, expensive electronics, nor the those nice newer $400k+ homes that people seem to be buying up like hot cakes. These days I lost my high motivation that I had when I moved here. Now work feel likes a drag, especially when it seems like my salary isn't going as far as I excepted. Anyhow, I will end my rantings for today ...

[Visitor2007]

Originally Posted by unseengundam

I remember doing look up of stats in Garland, revealing median household income was only $45,924 and median house price is only $117,000. Heck the city of Dallas has even lower median income and housing at $120k. I thought that put me well in the upper-middle class with tons of money to spare in DFW.

So, those stats are totally wrong, or at least misleading?

You cannot live your life constantly comparing to others. If you do, there are always others who are more beautiful, rich, etc. than you are. Just be satisfied that you're employed and doing better than most Americans and probably 95% of the people around the world. That would put you not in the top 10%, but top 5%.

Happy now?

[Rakin]

Selling homes for a living I find 2 types of people. Those from the big city, east /west coast think our cost of living & home prices are fantastically cheap. The others from small town America think our cost of living & home prices are exceptionally high.

For a major metro area and compared to most large cities I agree that our costs are very reasonable.

[FalconheadWest]

Making $58k a year, with average debt to income ratios, you could probably qualify for around $175k. You could buy a HUGE house in north Frisco for that amount, BRAND SPANKIN' NEW! There are tons of homes in that price range in Frisco.

In Garland, you could find a house under 10 years old for that price. In East Allen, you could find a house under 5 years old for that price... etc...

You make a good salary and unless you're spending your money on worthless partying, which I hope you're not, then you shouldn't feel poor in the least. Before I got into real estate, I was single in corporate world making $32k and thought I was living the high-life, and I lived in Valley Ranch, and also Far North Dallas off the tollway and Frankford which are two of the more expensive areas to live.

You're doing great at $58k and shouldn't have any problems finding a good home.

[MaryS80]

You are making pretty good money. Keep in mind that some of the people may come from two income households. Also Dallas is home to the $30,000 millionaire, in other words a lot of people live beyond their means. They may have very nice things, and they may very well be in debt up to their eyeballs and working two jobs.

you can't live life comparing yourself to others, and trying to meet other peoples standards. Be happy, you have a good job, a roof over your head, and you get to eat everyday. People who make fun of you over material issues are immature and insecure.

[southern living]

this reminds me of something i read from dan gross of newsweek:

"Relative income really works at the neighborhood level. As we know from the work of Cornell economist Robert Frank, people rate their well-being not so much based on how much they make and consume, but on how much they make and consume compared to their neighbors. After all, you have to compete with them for status and for important positional goods such as housing and schools. And here the CNBC crowd has a point. It is certainly true that in a few ZIP codes and neighborhoods, brandishing a $250,000 salary is like bringing a knife to a gunfight. There is a significant number of rich people—including a healthy contingent of filthy rich people—in places like New York City and San Francisco. If you want to live in a neighborhood where starter homes cost $1 million, and you want to send your kids to private schools, and you want to go on great vacations and have a beach house, then $250,000 likely won't cut it. For people in this situation, the knowledge that they're doing better than 98 percent of their fellow Americans is little solace when the investment banker down the street has just pulled down a $2 million bonus."

link to whole storyDan Gross: Is $250,000 a Middle-Class Salary? | Newsweek Voices - Daniel Gross | Newsweek.com


even people who make 250,000 as it turns out, feel poor because they are comparing themselves to others

[unseengundam]

Originally Posted by Rakin

For a major metro area and compared to most large cities I agree that our costs are very reasonable.

I know it better than most thats one reason I moved here. I actually was interviewed in CA and got 60K offer in Northern VA (DC). But didn't take them since it cost so darn much to live there.

Originally Posted by FalconheadWest

Making $58k a year, with average debt to income ratios, you could probably qualify for around $175k. You could buy a HUGE house in north Frisco for that amount, BRAND SPANKIN' NEW! There are tons of homes in that price range in Frisco.

You make a good salary and unless you're spending your money on worthless partying, which I hope you're not, then you shouldn't feel poor in the least.

North Frisco!!?? That way faraway, I don't think I could stand driving 1 hour each way. Back in Columbia, MO home always 10 minutes from everything including work.

I actually qualified for $250k Loan a year back but didn't want to buy then. Houses seemed to be expensive and I have student loans + credit card debit to pay off still. So I moved in to so called "luxury" apartment. It really doesn't feel luxurious, better most, but it does sucks $1200 a month! My current search for nicer + cheaper Apt didn't yield too much result. Most of my $$ goes to Apt + loans (oh yeah and the FED GOV too!)

southing living - I think you quite right. I remember my former manager (he was for 6 months) started work 10 years go and he already had 4 promotions. Then he left our group for another site for another BIGGER promotion. Probably now earns like $150k, he seem be the type always chase after promotions and get in all overtime he can possibly (he worked from 7am to 9pm almost everyday!).

[Visitor2007]

unseengundam, how old are you? What do you do for fun (things that you spent money on?)

[southern living]

You moved to the northern part of town which is perceived to have a "keeping up with the joneses" syndrome and clearly if people are laughing at you because you drive a hyundai, there might be some truth to it.

by moving North, you are simply forced to spend more. According to the numbers presented by money magazine, the ratio for median home price to median income is higher in Northern cities than southern cities. For example, the median income in carrolton is 84,000 and the median home is 182, 942. compare to desoto where the median income is 82, 275, but the median home is only 158,270. lewisville the median income is 81,668 and median hm value is 176,890. cedar hill md income (78,226) and md hm value 139,373.

cities with about the same median income but drastically different mortgage payments. I dont know if this means there is more "keeping up with joneses" in the north, but it does show there are cities in the south that are just as affluent and yet its cheaper to live there.

maybe you should consider moving?

[Grainraiser]

When looking North your looking at the higher price homes compared to most parts of DFW. You can get brand new 3,000sqft home in Mesquite for 215,000. It want carry the presitge of the northern burbs but your money will certainly go further. There are always trade offs in life. Me and the wife took drive around Dallas tonight and were pleasantly surprised how nice it was in the Victory Park area. Highrise condos with a vibrant nightlife would be great for a single or young childless couple. There is always a perfect area for people to live. You just have to look around and find what works best for you. If I had your salary I can promise you I would have a great lifestyle.