How do average income earners afford homes in Seattle? (Vancouver: for sale, HOA)

[bhouston77386]

$57,849 is the average median household income in Seattle. $585,324 is the average price for a detached single family home.

How on earth can the average person or family afford a mortgage of $585,325, not including insurance and all the other taxes?

I have relatives that live in Vancouver, Ca which has similiar house prices to Seattle and their combined income is 150,000 and they can not afford a single family home.

I guess if your an average income earner you better just leave Seattle if you ever want a decent single family home.

[mitsuturbo]

There are a lot of VERY expensive homes in this area. I have seen some in the sub "quarter million dollar" range, that seem ok.

[Jennibc]

You need to look at median price not average. The outliers will skew the average to the right. And people making the median income don't own in Seattle proper unless they bought over 10 years ago. They commute from Kent or Snohomish County. If there are more people than there is available housing for sale it doesn't matter what the median income is, people with highest incomes will buy homes while people without can try and get into condos or move outside of the city.

[wsugrad03]

Simple answer is that they don't. People who buy in the median home value range are paid a lot more than the median income, or are bringing a lot of equity with them. Most first time home buyers in Seattle are buying really small older homes, townhomes, or condos. The rest of the population commute from the North/South suburbs.

[JesseJames34]

Originally Posted by bhouston77386

$57,849 is the average median household income in Seattle. $585,324 is the average price for a detached single family home.

How on earth can the average person or family afford a mortgage of $585,325, not including insurance and all the other taxes?

I have relatives that live in Vancouver, Ca which has similiar house prices to Seattle and their combined income is 150,000 and they can not afford a single family home.

I guess if your an average income earner you better just leave Seattle if you ever want a decent single family home.

If your relatives make 25% gross income of median house value there every year and they can't figure out a way to afford a house, then they are in serious need of a financial advisor.



Though old and things are probably worse now than back then, the 2000 census can provide some insight into just how bad it really is.

Home ownership rate for 10 major metro areas spread out over the country:

Seattle: 48%
San Diego: 49.5%
Atlanta: 43.7%
Chicago: 43.8%
Baltimore: 50.3%
Miami: 34.9%
Philadelphia: 59.3% (edit: forgot Philly)
Boston: 32.2%
San Francisco: 35%
Dallas: 43.2%
source: State and County QuickFacts

So perhaps by the skin of their teeth, Seatleites are doing much better in terms of home ownership than many other cities are. Must be those high salaries (dodging the eggs...)!

[Jennibc]

Originally Posted by JesseJames34

If your relatives make 25% gross income of median house value there every year and they can't figure out a way to afford a house, then they are in serious need of a financial advisor.



Though old and things are probably worse now than back then, the 2000 census can provide some insight into just how bad it really is.

Home ownership rate for 10 major metro areas spread out over the country:

Seattle: 48%
San Diego: 49.5%
Atlanta: 43.7%
Chicago: 43.8%
Baltimore: 50.3%
Miami: 34.9%
Philadelphia: 59.3% (edit: forgot Philly)
Boston: 32.2%
San Francisco: 35%
Dallas: 43.2%
source: State and County QuickFacts

So perhaps by the skin of their teeth, Seatleites are doing much better in terms of home ownership than many other cities are. Must be those high salaries (dodging the eggs...)!

Yah, back in 2000 you could still by a single family home for 250K in Ballard, Greenwood, Crown Hill, Wedgwood, Lake City, Maple Leaf, Northgate, or Columbia City neighborhoods (it wouldn't be a particularly nice house but nevertheless a single family home) No more. I'd be curious what those numbers are today. I also wonder if those number reflect condos.

[bhouston77386]

150,000 doesn't go far if your mortgage is 3297.53 or so a month not including taxes, insurance, maintence etc. which comes to about 3500 or more a month on average

150,000 equates to about 100,000 take home a year. Which equals about 8300 a month. 8300 - 3500= 4800 left over.

Hell I live in Houston and my family budget is about 5600 a month and 1200 is house payments. If you have kids, college savings, health insurance, day care etc etc... 4800 is not alot to work with..

[seattlenextyear]

weather....high home prices...whining.....weather.....high home prices....whining.....weather.....high home prices....whining...

[JesseJames34]

Originally Posted by Jennibc

Yah, back in 2000 you could still by a single family home for 250K in Ballard, Greenwood, Crown Hill, Wedgwood, Lake City, Maple Leaf, Northgate, or Columbia City neighborhoods (it wouldn't be a particularly nice house but nevertheless a single family home) No more. I'd be curious what those numbers are today. I also wonder if those number reflect condos.

I don't know either. What we do know is that the dramatic increase in housing prices and little increase in salaries was pretty much accross many states over the last several years, not just Seattle, WA.

[JesseJames34]

Originally Posted by bhouston77386

150,000 doesn't go far if your mortgage is 3297.53 or so a month not including taxes, insurance, maintence etc. which comes to about 3500 or more a month on average

150,000 equates to about 100,000 take home a year. Which equals about 8300 a month. 8300 - 3500= 4800 left over.

Hell I live in Houston and my family budget is about 5600 a month and 1200 is house payments. If you have kids, college savings, health insurance, day care etc etc... 4800 is not alot to work with..

Nonsense. How is that many people live with less than $150,000 a year then? Such people should save and put a healthy down payment on their home, or buy a smaller home or even a condo (i wouldn't pay the HOA some states/communites have). Don't fiannce your future and well-being away to the banks.

I'll tell you one easy way to reduce your monthly COL. Stop paying interest and so-called saving at the same time. You can save by not payin interest to the banks. When you borrow the interest rate is almost always higher than any savings rate. If you have a car loan, or home loan, or any other loan, examine how much in interest you are losing to the bank each month and compare that with any savings accounts. The banks are having their cake and eating it too. Stop saving when you are debting, essentially. Not aimed at bhouston77386, just people in general.