Foreclosures Are a Symptom, Home Prices Are the Problem (Princeton: real estate, to rent)

[BobKovacs]

Originally Posted by tahiti

a couple each earning 50K isn't all that crazy or unlikely.

Well, based on median salaries for even the highest counties in NJ being in the +/- $70k's, it may be more unlikely than you'd think. And remember, alot of the DINKs at some point may want to become parents, so either one salary goes away, or a big chunk of it goes to daycare.

[nic529]

these are exactly the reasons we are thinking of leaving NJ. its just too expensive.

[AnesthesiaMD]

Originally Posted by BobKovacs

Well, based on median salaries for even the highest counties in NJ being in the +/- $70k's, it may be more unlikely than you'd think. And remember, alot of the DINKs at some point may want to become parents, so either one salary goes away, or a big chunk of it goes to daycare.

I think in NJ you have to go more on a town by town basis rather than the county wide median salary. NJ is very segregated, and I'm not talking race here. As you know, many towns have median incomes above 100k. Especially in Morris County.

[JERSEY MAN]

I agree the home prices in most of the state went thru the roof. But if you do a little research and want decent schools and towns that are highly rated for there safety try Ocean County. Lets see I did a realtor.com check and checked the price range of 250-300K although high not to bad for Jersey. Take the town of Toms River they have 241 properties for sale in this price range. Now go to Brick they have 132 properties listed in that range. If you move it up to say 350K you have a combined total almost up to 1000 properties. Many are in Adult communities and many are not. A quick look thru by myself revealed what I thought to be DECENT STARTER HOMES. I live by the areas and would recommend the towns, close to the beach, good school systems. The one and only drawback is commuting. Depending on what time of the day you have to be in work. For myself I miss the traffic as one of my jobs is 6AM-2PM. If you work 8-4 in North Jersey or the Trenton area commuting could be a nightmare. Like I said in a previous post good luck with your search either way.

[AnthonyB]

Originally Posted by BobKovacs

Well, based on median salaries for even the highest counties in NJ being in the +/- $70k's, it may be more unlikely than you'd think. And remember, alot of the DINKs at some point may want to become parents, so either one salary goes away, or a big chunk of it goes to daycare.

I agree. The median HOUSEHOLD income in New Jersey is around $80k, meaning half make above and half below and that is frequently with 2 incomes. I would bet that no more than 25%-30% have a household income over $100k.

The fact that it is so expensive here and that there are some truly wealthy people live in NJ makes people forget that lots of households don't make that kind of cash. Receptionists still make around $25k. Social workers just over $30k. Teachers in my district around $45k. And these are people with college educations to pay for.

And when looking at housing costs, factor in that todays buyer will be looking at $8-10k in property taxes every year.

[CuCullin]

Originally Posted by AnthonyB

I agree. The median HOUSEHOLD income in New Jersey is around $80k, meaning half make above and half below and that is frequently with 2 incomes. I would bet that no more than 25%-30% have a household income over $100k.

My gf and I sure as hell don't make $100k/yr combined. She's got 1.5yrs left for her bachelor's, then a starting salary I would guess in the range of $40k/yr.

My salary when I bought my house was $50k. Since then, I've gotten a few $k in raise, I get a bonus of a few $k every christmas, and I have a side business which gets me about $10-15k more. She makes about $15-$20k/yr right now. So even with me working full time, plus a side business, and a part time for her.... we're still not hitting $100k.

So Bob, Anthony, etc are right. $100k isn't exactly common, even for a household.

[tahiti]

Originally Posted by CuCullin

My gf and I sure as hell don't make $100k/yr combined. She's got 1.5yrs left for her bachelor's, then a starting salary I would guess in the range of $40k/yr.

My salary when I bought my house was $50k. Since then, I've gotten a few $k in raise, I get a bonus of a few $k every christmas, and I have a side business which gets me about $10-15k more. She makes about $15-$20k/yr right now. So even with me working full time, plus a side business, and a part time for her.... we're still not hitting $100k.

So Bob, Anthony, etc are right. $100k isn't exactly common, even for a household.

you guys are young - i wouldn't expect it either.

people, i never said EVERY FAMILY makes $100K, I said it's not crazy or unlikely, which is the truth. the median family income in NJ is nearly $78K - which means HALF are making MORE. in a lot of towns in Morris, Somerset, Hunterdon the median family income is OVER $100K.

another thought - the incomes are higher in the northern part of the state, where housing prices reflect that - kinda like everywhere. higher pay = higher housing costs. that being said, prices are slowly coming down and should be in better reach for people who were previously excluded. but i do agree with a previous post about the 20-something/early 30-something "gotta have it all" mentality. reminds me of the poster a few weeks ago who wanted a house (single family, no condo or townhouse) for no more than $150K in a safe area, close to NYC. Come on!

ETA: nearly 30% of NJ households make over $100K.

[roger_paul]

Originally Posted by emanon

Todays young people want everything NOW and look where it's got them, in debt because they bought over their heads because they have to have it all right now.

Those starter homes are out there you just have to adjust your priorities.

I want a starter home! I'm 29 and my fiance is 27. We've been looking in north and central NJ for the past 6 months and everything we've seen is over-priced, over-taxed and at least 30+ years old. Any new homes are mostly huge and with even bigger taxes to go with it. Can we afford it? maybe, but we don't want to eat peanut butter and jelly for dinner every night and live in a 4 bedroom house with fireplace and formal dining room that we just don't need.

Everything in NJ seems to be bloated... and we like it here, we don't want to move to the Carolinas or Florida like a lot Jerseyans we've met have done.

Are there any starter homes close to transportation (We work in NYC) and located in nice, safe middle-class neighborhoods? We're still looking...

[emanon]

Originally Posted by roger_paul

I want a starter home! I'm 29 and my fiance is 27. We've been looking in north and central NJ for the past 6 months and everything we've seen is over-priced, over-taxed and at least 30+ years old.

Are there any starter homes close to transportation (We work in NYC) and located in nice, safe middle-class neighborhoods? We're still looking...

If you truly want a starter home you will have to look at older homes. Typically only 2 bedrooms,one bath, eat in kitchen, small LR, no central a/c. small lot 50X100 or smaller. That's what a starter home is, that what the older folks started with 40 years ago.
You ain't gonna live there forever, maintain it , make some improvments and in 5-10 years sell for a profit and start on your second house.

A starter home will not impress your friends but it will give you a start and in 20 years you will be a lot further ahead of those who struggled to buy the perfect home right out of the gate.(pbj eaters)


In Somerset county starter homes can be found in North Plainfield, South Bound Brook, Bound Brook, Manville, Raritain, Franklin Twp. and a few areas of Bridgewater.

[CuCullin]

Originally Posted by tahiti

you guys are young - i wouldn't expect it either.

Understandable, but - I have a white collar job, have had one for my entire career (7 years now... only slightly scary). I'm definitely not overpaid, and consider myself just slightly underpaid, but I'm not far from where my work would get me at this level. I work in NYC. My job doesn't exist except in major metropolitan areas - DC, San Francisco, London, Dubai, so on. Its harder ever year to find competent people even at a lower level than mine. So, I'm making skilled NYC money. I don't say this to try and flaunt what I'm making (because it would be kind of silly), just to point out that I'm definitely not in the category of doing poorly.

I've already rented, and rent was actually more than my current mortgage - almost more than mortgage plus taxes, and I made far less money at the time. What I bought (as you know) was a small 1200sq ft home, which needs a good bit of work - and it was still a hell of a deal. As Bob knows (and mentioned when I posted some pics), I'll be putting a good bit of money and labor into bringing it up to par. Already have been, with some of the more significant expenses coming up in the spring. When I do all this work, and the home is in good shape, I will have brought it up to the value of a 1200sq ft home which doesn't need a new roof, siding, some electrical updates, bathroom venting, a new kitchen, carpeting/flooring upstairs, no cracks in the walls, a more polished looking basement, new trim throughout the house, so on and so forth. So in other words, a generic small home fit for a couple, maybe empty nesters. A starter home that doesn't need someone familiar with the construction business.

A starter home worth (by recent comps) about $250-$275k.

Considering my parents, with three kids, making not much less than they make now, purchased a roomy split level home in a nice area for $220k.... well, sorry, I don't consider $250k a "starter home" price. It just doesn't fit with the idea of "starter".