Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Perhaps I'm just an emotional masochist because I've spent the past hour researching the Arlington real estate market and have fallen into a near-depression over just how seemingly unattainable housing prices are for a single-income individual.
I'm currently earning a salary of $42,000, and when deductions are taken out that boils down to a net of around $2,270/month. Of that I'm currently spending 50% of my income on rent because of how expensive it is to live in Reston. If I were to double my gross annual income to $84,000, I'd conceivably be taking home $4,540/month and could afford to "upgrade." Given my current career path I can very easily be earning a salary in that range when I'm 30. If so, then I found my perfect cute little "starter" home right in Arlington!!!
3521 16Th St S, Arlington, VA, 22204 - MLS ID#AR6973658 - Single Family Home real estate - REALTOR.com® (http://www.realtor.com/realestateandhomes-detail/3521-16Th-St-S_Arlington_VA_22204_1106507482# - broken link)
Granted it looks like it needs tremendous updating, but I can see the potential for a cozy home just the right size for me and with just enough grass to make me happy as I run amok with one of those fun reel mowers! I can even do some painting, show off all of my urban planning books in those built-in bookcases next to the fireplace, and perhaps even adopt a Siberian Husky!
The problem? This home, which was the least expensive "non-dumpy" single-family-detached dwelling I could find in Arlington (oddly enough though there are TONS of 700-square-foot studios for about the same price?!), costs $380,000! If I were to put just 5% or $19,000 down, which would likely be all I could afford to scarf up by that point in time, my monthly mortgage payment would be $2,050.
I know I'm the one with the accounting degree here, but I'm admittedly "wet behind the ears" when it comes to life experiences. At age 22 I'm already planning ahead for life at age 30, and my goal will to be to own a home just like this beauty someday! In your professional opinion, can someone earning a salary of $85,000 comfortably afford to purchase a home valued at $380,000? (Let's assume maybe $365,000 since, judging by the photos, it looked like an elderly person used to live here, hence possibly implying a motivated estate sale). I know the general rule of thumb is to not commit yourself to a home priced at greater than three times your annual salary, but by that rule of thumb I'd have to be pulling in $120,000+ annually!
How in God's name can a single person afford to buy a place in Arlington unless they're an attorney, physician, etc.? This market seems to be unfairly skewed against single people. If I had a mate we'd likely both be making $60,000 ($120,000 combined) by age 25 and could purchase a home together then or wait until age 30 when we might be earning nearer to $200,000 combined.
I don't exactly think my tastes are very "extravagant." I'd be DELIGHTED to own a home like that and put my finishing touches on it, but how can I ever afford it?! I'm just getting so depressed wondering how someone with one income can ever afford a nice place of their own like that?
No, I haven't bought before 30 but I'm planning on it.
you can certainly afford a place with $85k a year. a 365k house might be a stretch but I think possible, especially if you save up more down payment.
In addition there are plenty of decent places for cheaper then that. I'm sure you could get a 1br condo in a desirable yuppie area for much less then that. Also there are many SFH and TH's for less then that in the outer burbs.
I bought my first home in North Arlington (Court House) when I was 27 and living and supporting my mother on one-income. Of course, this was years ago and things have changed (not to mention it was a one bedroom, one bath condo). I qualified for a VHDA loan. I had to put very little down and the seller paid for my closing costs. At the time, I didn't own a car so being very close to a metro and DC (where I worked) were most important to me. Like you, I was spending over 50% of my income in rent so it made sense to spend less on a mortgage since I was planning to stay in the area long-term.
Your first house is not going to be your dream house.
I know quite a few people younger than 30 in that salary range who own their own home. Most of them are in condos, a few in townhouses, one in a single-family. Some of them have roommates.
But here's the thing: Only one person I know owns a home on the Orange Line in Arlington. Everyone else is scattered around West End Alexandria or Kingstowne.
The housing market is only "unfair" because you're looking in one of the most expensive places and for a single-family house. It's like going to California and complaining that it's unfair you can't live in a Beverly Hills mansion.
If you're only one person, you don't need a house. For someone who lectures the board about smart growth, doesn't it seem a bit hypocritical to ignore condos?
Well, as a 27 year old living in Arlington, my short answer would be, you don't. The only peers of mine who own homes are either working for big law firms or have townhouses further out in Fairfax County. They buy a three bedroom for $300-400k, which they can barely afford, and then have roommates to make sure that they don't go under (which is risky and more difficult now that loans are harder to get).
I can't compare other large U.S. cities to this one, but owning a house just isn't really something most single people in Arlington or DC aspire to, because it's not financially practical. Unless you have wealthy parents which, let's face it, a lot of young people in this city do.
Honestly, if owning property by your mid to late 20's is very important to you, this is not the right market. I think I remember reading that you were interested in Pittsburgh. From what my friends there have said, it's a lot easier to be a middle income young adult and own a house there.
I'm hoping someone lets you in on a secret I don't know, though, because I would love to be able to buy property here.
No, I haven't bought before 30 but I'm planning on it.
you can certainly afford a place with $85k a year. a 365k house might be a stretch but I think possible, especially if you save up more down payment.
In addition there are plenty of decent places for cheaper then that. I'm sure you could get a 1br condo in a desirable yuppie area for much less then that. Also there are many SFH and TH's for less then that in the outer burbs.
I know I can get a 1 BR "yuppie condo" for less than $365,000, but what I seek is a tiny detached home on a small lot in a walkable neighborhood (1,100 square feet would be ideal with 2 BR, 1 BA). I want a small bit of land (1/10 acre would suffice) just so I could try my hand at growing a vegetable garden, some sunflowers, and fussing over a patch of grass (maybe even putting a flamingo in the yard!) I don't want to hear the people upstairs stomping around or have people peering in my apartment windows indefinitely, so trading an $1,135/month rent payment on a 1-BR unit for a $2,000/month mortgage payment on a 1-BR condo doesn't seem like much of "trading up" to me. The "walkable neighborhood" is also essential to me because it shouldn't be this difficult to find an affordably-priced mixed-use neighborhood in a region as large as ours. Back "home" in NEPA you could buy a well-kept single-family detached dwelling within walking distance to the downtown core of either Scranton or Wilkes-Barre for $150,000. Here a home like that would cost $600,000+. Why? Salaries most certainly aren't four times as much down here.
I'm living frugally, but nevertheless I just don't see how I'll ever be able to reach my goal of owning a home as downright beautiful as the one I linked.
I bought my first home in North Arlington (Court House) when I was 27 and living and supporting my mother on one-income. Of course, this was years ago and things have changed (not to mention it was a one bedroom, one bath condo). I qualified for a VHDA loan. I had to put very little down and the seller paid for my closing costs. At the time, I didn't own a car so being very close to a metro and DC (where I worked) were most important to me. Like you, I was spending over 50% of my income in rent so it made sense to spend less on a mortgage since I was planning to stay in the area long-term.
Actually thanks for the reminder about a vehicle. If I did make the leap into Arlington I could sell my car and kiss the $222/month payment, $100/month gasoline bill, and $150/month insurance payment good-bye, giving me $472/month MORE to "play" with as I adjust my housing budget accordingly. I never even thought about being able to live car-free.
Your first house is not going to be your dream house.
I know quite a few people younger than 30 in that salary range who own their own home. Most of them are in condos, a few in townhouses, one in a single-family. Some of them have roommates.
But here's the thing: Only one person I know owns a home on the Orange Line in Arlington. Everyone else is scattered around West End Alexandria or Kingstowne.
The housing market is only "unfair" because you're looking in one of the most expensive places and for a single-family house. It's like going to California and complaining that it's unfair you can't live in a Beverly Hills mansion.
If you're only one person, you don't need a house. For someone who lectures the board about smart growth, doesn't it seem a bit hypocritical to ignore condos?
I'm bolding your final response as that is what I'll reply to first. It is quite possible to have "smart growth" that incorporates single-family detached dwellings. They just have to be similar to the one I chose---small square footage, narrow lot size, and in a walkable mixed-use neighborhood that isn't 100% reliant upon the automobile. The reason I eventually yearn for a place like that is simply because I don't understand how I'd be able to accomplish dreams of being able to adopt a Siberian Husky, grow a vegetable garden, and grow sunflowers in a high-rise condo. Yes, I may very well end up buying a $290,000 1-BR, 700-square-foot condo in Arlington as my next jumping point out of Reston, but every year I live in that will be one fewer year I'll be alive to enjoy those goals I want to have someday and that does depress me a bit.
I'm not one of those typical Generation Y folks who wants everything handed to them; Lord knows it pained me to work full-time through college while most of my more affluent friends had their parents hand them everything and partied all the time. However, I would like to have a place like this one I linked where I could enjoy playing fetch with Sierra (my future husky) in the small backyard without worrying about breaking my hip due to old age!
If Arlington is the "Beverly Hills" of Northern Virginia, as you claim, then why are so many people in Reston opposed to having Reston become "Arlingtonized?" Hell, wouldn't most people want their communities to turn into Beverly Hills so that their property values would appreciate astronomically? It can't be "all that" if people here are terrified of Arlington (or are people in Reston just fear-mongerers?)
I'm well aware my first home will not be my "dream home." I just don't know if I'll ever be able to afford that cute little dream home I linked up above though on one income, which is what has me so concerned. I know good things come to those who wait, but even if I set my sights high on banking $3,000-$5,000 in savings each year for a home when I'm earning enough money to do so I may not be able to buy a house like that until I'm 40! Apparently an elderly person lived here though (just look at the interior photos), but I'm assuming he/she bought back in the 1960s when one could comfortably afford a home here.
I suppose one scenario would be to find a roomie to split the mortgage on a place like this with, each taking one of the bedrooms and sharing the bathroom, but how many thirty-somethings still want to have roomies---complete strangers who could have rowdy parties who could damage the property when you're on a business trip?
By the way, that home isn't on the Orange Line. It's in a far-flung part of Arlington. I could only imagine how much more expensive it would be if it were located in a place like Ballston!
Well, as a 27 year old living in Arlington, my short answer would be, you don't. The only peers of mine who own homes are either working for big law firms or have townhouses further out in Fairfax County. They buy a three bedroom for $300-400k, which they can barely afford, and then have roommates to make sure that they don't go under (which is risky and more difficult now that loans are harder to get).
I can't compare other large U.S. cities to this one, but owning a house just isn't really something most single people in Arlington or DC aspire to, because it's not financially practical. Unless you have wealthy parents which, let's face it, a lot of young people in this city do.
Honestly, if owning property by your mid to late 20's is very important to you, this is not the right market. I think I remember reading that you were interested in Pittsburgh. From what my friends there have said, it's a lot easier to be a middle income young adult and own a house there.
I'm hoping someone lets you in on a secret I don't know, though, because I would love to be able to buy property here.
I still am very interested in Pittsburgh actually. A home like the one I linked to might sell for $150,000 there, and if I was making even just $50,000 there I could easily afford a place like that whereas here on a $50,000 salary you can't even afford a small condo. Pittsburgh is actually a gorgeous city and is one of the most underrated cities in America, in my opinion---most of the people there just suck because all they do is whine about how much they hate their own city (yet they'll never leave).
I'm waiting for that "secret" as well. Most people in their late-20s-mid-30s who OWN here either receive substantial help from affluent relatives or are dual-income householders. Since the odds of me finding a mate down here are rather slim, and my family is far from being wealthy, I suppose I will eventually have to leave Metropolitan Washington to enjoy the lifestyle I want---the 1,100 square-foot 2 BR, 1 BA home on the 1/10-acre lot with a sidewalk in front and a market down the street. It really sucks too because I was starting to like it here, but you only live once; if a place like Pittsburgh could offer me everything I want for a fraction of the price, then I wonder why more people aren't flocking there? (The population is nosediving). My agency has an office there, so putting in for a transfer would guarantee me a position once one opened up (I doubt there's a huge waiting list to move to Pittsburgh).
(Sigh!) Now I just did some cyber-house-shopping in Pittsburgh and found beautiful older homes for a fraction of my current rent payment in this suburban wasteland!
$78,500: Baldwin Boro, PA, 15227 - MLS ID#766454 - Single Family Home real estate - REALTOR.com® (http://www.realtor.com/realestateandhomes-detail/Baldwin-Boro_PA_15227_1107697163# - broken link)
$78,500: Brentwood, PA, 15227 - MLS ID#782128 - Single Family Home real estate - REALTOR.com® (http://www.realtor.com/realestateandhomes-detail/Brentwood_PA_15227_1110524472 - broken link)
$79,000: Beechview, PA, 15216 - MLS ID#754445 - Single Family Home real estate - REALTOR.com® (http://www.realtor.com/realestateandhomes-detail/Beechview_PA_15216_1104869626 - broken link)
When I see how far your money stretches in other areas and then compare that to what I get in Reston for much more money I just shake my head in disbelief. I just don't get it. Pittsburgh's a gorgeous city with history on every block, and you can get a beautiful home there for under $100,000. I'm earning $42,000 and am POOR living in Reston, which is suburbia on steroids. It's nights like tonight where I'm really regretting my decision to move here because I just don't see how the quality-of-life here is THIS much higher to justify paying six times as much for housing.
Last edited by SteelCityRising; 07-09-2009 at 07:26 PM..
Reason: Addition of More Home Listings
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I can even do some painting, show off all of my urban planning books in those built-in bookcases next to the fireplace, and perhaps even adopt a Siberian Husky! 
If I were to put just 5% or $19,000 down, which would likely be all I could afford to scarf up by that point in time, my monthly mortgage payment would be $2,050. 
In your professional opinion, can someone earning a salary of $85,000 comfortably afford to purchase a home valued at $380,000? (Let's assume maybe $365,000 since, judging by the photos, it looked like an elderly person used to live here, hence possibly implying a motivated estate sale). I know the general rule of thumb is to not commit yourself to a home priced at greater than three times your annual salary, but by that rule of thumb I'd have to be pulling in $120,000+ annually! 
The "walkable neighborhood" is also essential to me because it shouldn't be this difficult to find an affordably-priced mixed-use neighborhood in a region as large as ours. Back "home" in NEPA you could buy a well-kept single-family detached dwelling within walking distance to the downtown core of either Scranton or Wilkes-Barre for $150,000. Here a home like that would cost $600,000+. Why? Salaries most certainly aren't four times as much down here. 
Apparently an elderly person lived here though (just look at the interior photos), but I'm assuming he/she bought back in the 1960s when one could comfortably afford a home here. 
