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Hi everyone. I am thinking about a SF home purchase in the DC metro - either Maryland or NoVa. I also have some flexibility to move, probably to another large metro area. I think there's a huge difference in home prices in the DMV area compared to other large metros, such as in North Carolina, Georgia, Texas. The difference in payscale for my job between the DC region to those other areas is probably 10-15% (although I haven't researched this extensively). So if you look at the home price to income ratio, it is much higher than for other metros in the south.
Given the above information, the difference in income doesn't makes up for the huge difference in home prices. It would appear that you would be in much bigger debt here just due to the cost of housing as compared to the other areas. The number of jobs in the DC area is perhaps greater than those other regions, but I don't think it makes up for the home prices. Is it better to buy a home in DC, or move south or elsewhere that is cheaper?
I would appreciate some thoughts on this. TIA.
First off, DC is not a southern city. It's mid-atlantic, and on the BosWash/Northeast corridor. It has the density of many of the cities in this corridor. So comparing it to a southern city is not really appropriate.
The other big difference is this is a densely populated knowledge economy with good public transit. In terms of the walkability and transit access, there are very few cities the size of DC that compare nationally in that respect. SF, Boston, and Seattle. Though Seattle's walkability and transit access is a bit worse than DC, SF, and Boston. Basically the other coastal knowledge economies. All of these cities have populations where 50%+ of their regional population has a bachelors degree, they also have similar walkability and transit access to DC.
If you are planning on buying a suburban home and drive everywhere, the difference may be negligible and the cost savings may make sense. Suburban living especially outside the beltway in the more sprawling suburbs, is pretty much the same everywhere, and the DC area cost premium may make less sense in comparison. But for those of us who value living in a walkable neighborhood with good transit access, the cost is worth it living inside the city itself, and the immediately adjacent suburbs (Bethesda, Silver Spring, Takoma Park, Arlington, Alexandria). Again, the walkable communities with good transit access in a regional economy like DC, that carries value to many people, and these cities are not exactly common in the US. As noted there are only a handful of cities in the US which are walkable, and fewer which are knowledge economies. The thing is with southern cities is they are sprawling. They usually have a walkscore in the 30's, compared to DC's 74 (and many neighborhoods are in the 80s and 90s). This is a big part of why houses inside DC in the most walkable neighborhoods carry prices of $800k+.
This really depends on what you can do as well, it is not just the job you are currently going into, but also future jobs and opportunities. For some of us, DC is literally the best option, and sometimes the only option. I should note, jumping into the DC area and buying a home right away is generally not advised. The area does take a little bit of knowledge, and buying a suburban home disconnected from transit can end up with one being stuck in traffic.
Again, the question is what do you value, you are taking a very simple cost estimation on the home alone, without figuring out externalities. By living in the city without a car (perfectly possible in DC), I am price insensitive to gas. I am not driving around for many basic tasks, I am walking.
The one thing to consider, is if you don't have a Bachelors or higher I would not recommend moving to DC.
With all that being said, it's a great city to live in. But you have to consider what DC region is comparible too, as well as the type of neighborhood you want to live in. To me, life is too short to be stuck behind the wheel of a car.
Hi everyone. I am thinking about a SF home purchase in the DC metro - either Maryland or NoVa. I also have some flexibility to move, probably to another large metro area. I think there's a huge difference in home prices in the DMV area compared to other large metros, such as in North Carolina, Georgia, Texas. The difference in payscale for my job between the DC region to those other areas is probably 10-15% (although I haven't researched this extensively). So if you look at the home price to income ratio, it is much higher than for other metros in the south.
Given the above information, the difference in income doesn't makes up for the huge difference in home prices. It would appear that you would be in much bigger debt here just due to the cost of housing as compared to the other areas. The number of jobs in the DC area is perhaps greater than those other regions, but I don't think it makes up for the home prices. Is it better to buy a home in DC, or move south or elsewhere that is cheaper?
I would appreciate some thoughts on this. TIA.
It really all depends on your career. Are you in finance, law enforcement, engineering, or some other field that would yield multiple employment opportunities elsewhere? If so, I'd say think of living in another area. This area is pricey, and the costs really aren't worth it in my opinion since you'd likely have a higher quality of life somewhere else if your salary is decent.
Unless you are dead set on living in a particular area with a higher COL, or there are no prospective opportunities where you are, I'd look elsewhere.
I've lived in both TX (currently) and NC, and will move to DC next month.While housing costs are cheaper, these areas are less than ideal if you value intangibles such as what DistrictSonic has mentioned above. I'm a finance/accounting executive with an MBA, and though I have a skill that's pretty transferable and affords me the option to live anywhere, I'm going with DC along with the higher price tag. So, the bigger question is what do you value? For me, there's an intrinsic amount of value to living in a higher cost of living place that offers more on issues that are important to me vs. a cheaper standard of living/COL place. If a "cheaper" house is at the top of your priority list, then why are you considering DC?
The founders of our country agreed to put the nation's capital, "In the South" to persuade wealthy and heavily populated Colonial Virginia to join our fledgling nation; almost every third grader in America could tell you that. Geographically Washington, D.C. is a southern city. Maryland also is defined as being in the upper (northern) reaches of "The South". This is true regardless of which modern day megalopolis they are part of. That being said, the District of Columbia, Maryland, and northern Virginia are really in a transitional zone: where northeastern culture meets southern culture and, since it is our nation's capital, where both meet international culture. I think this is one thing that makes the region special; not fodder for northern elitist. Also, anyone who has ever spent a summer in the D.C. area can really tell you about the "southern heat and humidity" LOL
It really all depends on your career. Are you in finance, law enforcement, engineering, or some other field that would yield multiple employment opportunities elsewhere? If so, I'd say think of living in another area. This area is pricey, and the costs really aren't worth it in my opinion since you'd likely have a higher quality of life somewhere else if your salary is decent.
Unless you are dead set on living in a particular area with a higher COL, or there are no prospective opportunities where you are, I'd look elsewhere.
Interesting thoughts from various folks. There are of course pros and cons to every place, and things such as people, culture, amenities, transport etc can each be discussed in quite some detail and deserve their own threads. Sure I like these various aspects of the DMV area; however, the scope of my post was narrower for this thread, and that was the cost of housing, which the quoted post above addresses (btw the answer to Chariega's question is yes). As much as you like and enjoy these things, the most significant debt for regular folks is the mortgage.
Given an option (perhaps hypothetical), and logically speaking, would you choose to go into a larger amount of debt to have a house and live in the area or would you rather choose to move outside of DMV and own lower debt?
My other question is what's the average price of a SF home in the Md and Va suburbs and what is a reasonable level of income required to afford that price tag? I know it varies based on factors such as travel etc, but I was looking for a ball park based on reasonable assumptions such as a good neighborhood, close to public transit etc. An example is that a home in the suburbs costs about 500k and a 200k income would be required to afford that. Does that sound about right?
Last edited by pragmatic12; 03-04-2015 at 10:00 PM..
yeh, but DC housing price hasn't gone down in forever. Whatever you can buy, it'll make you money in 5 years, except for... those unspeakable.
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